PC CONNECTION INC Leases Disclosure
7. LEASES
The Company leases certain facilities from a related party, which is affiliated with the Company through common ownership. The costs for these leases are presented within short-term lease cost in the below table.
As of December 31, 2025, the Company had no leases that were classified as financing leases and there were no additional significant operating or financing leases that have not yet commenced. Refer to the following table for quantitative information related to the Company’s leases for the years ended December 31, 2025 and 2024 (dollars in thousands):
| Year Ended December 31, 2025 | ||||||||
| Related Parties | Others | Total | ||||||
Lease Cost |
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Capitalized operating lease cost | $ | — | $ | 1,852 | $ | 1,852 | |||
Short-term lease cost |
| 1,679 |
| 655 |
| 2,334 | |||
Total lease cost | $ | 1,679 | $ | 2,507 | $ | 4,186 | |||
Other Information |
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Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: |
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Operating cash flows | $ | — | $ | 1,963 | $ | 1,963 | |||
Weighted-average remaining lease term (in years): |
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Capitalized operating leases | — | 1.45 | 1.45 | ||||||
Weighted-average discount rate: | |||||||||
Capitalized operating leases | 0.00% | 4.39% | 4.39% | ||||||
| Year Ended December 31, 2024 | ||||||||
| Related Parties | Others | Total | ||||||
Lease Cost |
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| |
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Capitalized operating lease cost | $ | — | $ | 1,941 | $ | 1,941 | |||
Short-term lease cost |
| 1,830 |
| 569 |
| 2,399 | |||
Total lease cost | $ | 1,830 | $ | 2,510 | $ | 4,340 | |||
Other Information |
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Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases: |
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Operating cash flows | $ | — | $ | 2,078 | $ | 2,078 | |||
Weighted-average remaining lease term (in years): |
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Capitalized operating leases | — | 2.01 | 2.01 | ||||||
Weighted-average discount rate: | |||||||||
Capitalized operating leases | 0.00% | 4.31% | 4.31% | ||||||
As of December 31, 2025, future lease payments over the remaining term of capitalized operating leases were as follows (in thousands):
For the Years Ended December 31, | | ||
2026 | $ | 1,330 | |
2027 |
| 354 | |
2028 |
| 161 | |
2029 |
| — | |
2030 | — | ||
Thereafter | — | ||
1,845 | |||
Imputed interest | (57) | ||
Lease liability balance at December 31, 2025 | $ | 1,788 |
As of December 31, 2025, the ROU asset had a balance of $1,569. The long-term lease liability was $498 and the short-term lease liability, which is included in accrued expenses and other liabilities on the consolidated balance sheets, was $1,290.
As of December 31, 2024, the ROU asset had a balance of $3,077. The long-term lease liability was $1,552 and the short-term lease liability, which is included in accrued expenses and other liabilities on the consolidated balance sheets, was $1,805.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Mar 7, 2024 | |
| 2022 | Mar 6, 2023 | |
| 2021 | Mar 14, 2022 | |
| 2020 | Mar 16, 2021 | |
| 2019 | Feb 6, 2020 | |
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.