LEASES
We determine if a contract is a lease at inception. We have leases for office space and facilities, automobiles and certain information technology equipment. All of our leases are classified as operating leases and the majority of which are for office space and facilities.
Supplemental balance sheet information related to the Company’s operating leases as of December 31, 2025 and 2024 was as follows (in thousands):
| | | | | | | | | | | |
| | December 31, 2025 | | December 31, 2024 |
| Weighted-average remaining lease term | 7.1 years | | 7.5 years |
| Weighted-average discount rate | 5.94 | % | | 5.91 | % |
The components of lease cost and other lease information as of and during the year ended December 31, 2025 and 2024 are as follows (in thousands):
| | | | | | | | | | | |
| | December 31, 2025 | | December 31, 2024 |
| Operating lease cost | $ | 90,318 | | | $ | 51,783 | |
| Cash paid for amounts included in measurement of lease liabilities | | | |
| Operating cash flows for operating leases | $ | 93,414 | | | $ | 52,483 | |
Our leases have remaining lease terms ranging from less than 1 year to approximately 20 years. These leases generally contain renewal options for periods ranging from two to five years. Because the Company is not reasonably certain to exercise these renewal options, the options are not included in the lease term, and associated potential option payments are excluded from lease payments.
Maturities of operating lease liabilities and minimum cash commitments under the operating leases as of December 31, 2025 and December 31, 2024 were as follows (in thousands):
| | | | | |
| | December 31, 2025 |
| 2026 | $ | 83,384 | |
| 2027 | 77,355 | |
| 2028 | 61,564 | |
| 2029 | 53,550 | |
| 2030 | 45,198 | |
| Thereafter | 138,506 | |
| Total undiscounted lease payments | 459,557 | |
| Less: imputed interest | (86,978) | |
| Total lease liabilities | $ | 372,579 | |
| | | | | |
| | December 31, 2024 |
| 2025 | $ | 84,270 | |
| 2026 | 83,995 | |
| 2027 | 80,062 | |
| 2028 | 63,907 | |
| 2029 | 55,120 | |
| Thereafter | 178,389 | |
| Total undiscounted lease payments | 545,743 | |
| Less: imputed interest | (112,608) | |
| Total lease liabilities | $ | 433,135 | |
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.