Leases
The Company has operating leases relating to its facilities and office equipment with terms expiring though August 2035. Determination of whether a new contract is a lease is made at contract inception or at the modification date for a modified contract. The Company's operating leases may require fixed rental payments, variable lease payments based on usage or sales and fixed non-lease costs relating to the leased asset. Fixed non-lease costs such as common-area maintenance costs are included in the measurement of the right-of-use asset and lease liability as the Company does not separate lease and non-lease components. Variable lease payments are generally not included in the measurement of the right-of-use asset and lease liability and are recorded as lease expense in the period incurred. Short-term leases of 12 months or less are expensed in conjunction with the Company's short-term policy election.
The Company's operating leases may include renewal or termination options. Options to extend or terminate leases are excluded from balance sheet recognition until the options are reasonably certain to be exercised. The Company only included executed options to extend its leases in its calculation of right-of-use assets and lease liabilities at December 31, 2025.
Operating lease right-of-use assets and lease liabilities were as follows:
| | | | | | | | | | | | | | |
| | December 31, |
| (in thousands) | | 2025 | | 2024 |
| Assets: | | | | |
| Right-of-use assets | | $ | 61,976 | | | $ | 72,367 | |
| | | | |
| Liabilities: | | | | |
| Operating lease liabilities, current portion | | $ | 18,088 | | | $ | 17,078 | |
| Operating lease liabilities, non-current | | 57,651 | | | 68,775 | |
| Total operating lease liabilities | | $ | 75,739 | | | $ | 85,853 | |
The components of the lease costs were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | For the Years Ended December 31, |
| (in thousands) | | 2025 | | 2024 | | 2023 |
| Operating lease costs | | $ | 20,775 | | | $ | 21,504 | | | $ | 23,195 | |
| Variable lease costs | | 1,263 | | | 5,175 | | | 3,677 | |
Supplemental cash flow information relating to our leases was as follows: | | | | | | | | | | | | | | | | | | | | |
| | For the Years Ended December 31, |
| (in thousands) | | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in measurement of lease liabilities: | | | | | | |
| Operating cash flows used in operating leases | | $ | 21,775 | | | $ | 21,719 | | | $ | 19,587 | |
| | | | | | |
| Operating lease non-cash items: | | | | | | |
| Right-of-use assets obtained in exchange for operating lease liabilities | | $ | 3,248 | | | $ | 2,794 | | | $ | 6,414 | |
| Right-of-use assets increased through lease modifications and reassessments | | 2,731 | | | 767 | | | 1,063 | |
Weighted average remaining lease terms and discount rates were as follows:
| | | | | | | | | | | | | | |
| | December 31, |
| | 2025 | | 2024 |
| Operating leases: | | | | |
| Remaining lease term | | 4.5 years | | 5.2 years |
| Discount rate | | 5.5 | % | | 5.4 | % |
Future minimum lease payments under non-cancelable operating lease agreements at December 31, 2025 were as follows:
| | | | | | | | |
| (in thousands) | | Minimum Future Lease Payments |
| For the years ending December 31, | | |
| 2026 | | $ | 21,723 | |
| 2027 | | 20,318 | |
| 2028 | | 16,635 | |
| 2029 | | 14,299 | |
| 2030 | | 7,883 | |
| Thereafter | | 5,031 | |
| Total minimum lease payments | | 85,889 | |
| Less: amounts representing interest or imputed interest | | (10,150) | |
| Present value of lease liabilities | | $ | 75,739 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.