Leases
Lease costs for the years ended December 31, consist of the following:
| | | | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 | | |
| Operating lease cost: | | | | | | | |
| Straight-line lease cost | $ | 11,001 | | | $ | 8,933 | | | $ | 8,118 | | | |
| Right-of-use asset impairment cost | — | | | 606 | | | — | | | |
| Total operating lease cost | 11,001 | | | 9,539 | | | 8,118 | | | |
| Finance lease cost: | | | | | | | |
| Depreciation | 365 | | | 380 | | | 344 | | | |
| Interest on lease liabilities | 74 | | | 101 | | | 55 | | | |
| Total finance lease cost | 439 | | | 481 | | | 399 | | | |
| Total lease cost | $ | 11,440 | | | $ | 10,020 | | | $ | 8,517 | | | |
Supplemental balance sheet information related to leases as of December 31, is as follows:
| | | | | | | | | | | |
| 2025 | | 2024 |
| Operating leases | | | |
| Other assets | $ | 48,988 | | | $ | 39,839 | |
| | | |
| Other current liabilities | $ | 8,612 | | | $ | 8,093 | |
| Other long-term liabilities | 43,932 | | | 33,282 | |
| Total operating lease liabilities | $ | 52,544 | | | $ | 41,375 | |
| | | |
| Finance leases | | | |
| Property, plant and equipment, gross | $ | 3,024 | | | $ | 3,015 | |
| Accumulated depreciation | (1,049) | | | (676) | |
| Property, plant and equipment, net | $ | 1,975 | | | $ | 2,339 | |
| | | | |
| Current portion of long-term debt | $ | 712 | | | $ | 715 | |
| Long-term debt | 521 | | | 1,159 | |
| Total finance lease liabilities | $ | 1,233 | | | $ | 1,874 | |
| | | |
| | | |
| Weighted average remaining lease term (in years) | | | |
| Operating leases | 7.47 years | | 7.48 years |
| Finance leases | 1.93 years | | 2.88 years |
| | | |
| Weighted average discount rate | | | |
| Operating leases | 5.75 | % | | 5.65 | % |
| Finance leases | 4.86 | % | | 4.86 | % |
Supplemental cash flow information related to leases for the years ended December 31, was as follows:
| | | | | | | | | | | | | | | | | | | |
| | | 2025 | | 2024 | | 2023 |
| | | | | | | |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | |
| Operating cash flows from operating leases | | | $ | 8,835 | | | $ | 8,532 | | | $ | 8,178 | |
| Financing cash flows from finance leases | | | 715 | | | 725 | | | 436 |
| | | | | | | |
| Right-of-use assets obtained in exchange for lease obligations: | | | | | | | |
| Operating leases | | | 15,556 | | | 32,235 | | | 5,864 | |
| Finance leases | | | — | | | 128 | | | 2,523 | |
Maturities of lease liabilities as of December 31, 2025 are as follows:
| | | | | | | | | | | |
| Finance Lease | | Operating Lease |
| | | |
| 2026 | $ | 712 | | | $ | 8,612 | |
| 2027 | 472 | | | 9,397 | |
| 2028 | 97 | | | 8,844 | |
| 2029 | 4 | | | 7,894 | |
| 2030 | 2 | | | 6,382 | |
| Thereafter | — | | | 24,989 | |
| Total lease payments | 1,287 | | | 66,118 | |
| | | |
| Less imputed interest | (54) | | | (13,574) | |
| | | |
| Total lease liabilities | $ | 1,233 | | | $ | 52,544 | |
As of December 31, 2025, we have not entered into any operating or finance leases that have not yet commenced.
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.