LeasesFollowing is a summary of the weighted average remaining lease term and the weighted average discount rate for the Company’s leases:
| | | | | | | | | | | | | | |
| | December 31, 2025 | | December 31, 2024 |
| Weighted average remaining lease term: | | | | |
| Operating leases | | 6.4 years | | 6.4 years |
| Financing leases | | 4.1 years | | 2.9 years |
| Weighted average discount rate: | | | | |
| Operating leases | | 4.4 | % | | 4.1 | % |
| Financing leases | | 4.8 | % | | 5.2 | % |
Following is a summary of the Company’s leases within the consolidated statements of operations:
| | | | | | | | | | | | | | | | | | | | |
| | Fiscal Year |
| (in thousands) | | 2025 | | 2024 | | 2023 |
| Operating lease costs | | $ | 27,579 | | | $ | 29,616 | | | $ | 32,959 | |
| Short-term and variable leases | | 7,952 | | | 12,816 | | | 15,995 | |
| Depreciation expense from financing leases | | 1,051 | | | 1,647 | | | 1,646 | |
| Interest expense on financing lease obligations | | 156 | | | 321 | | | 447 | |
| Total lease cost | | $ | 36,738 | | | $ | 44,400 | | | $ | 51,047 | |
The future minimum lease payments related to the Company’s leases include renewal options the Company has determined to be reasonably certain and exclude payments to landlords for real estate taxes and common area maintenance. Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of December 31, 2025:
| | | | | | | | | | | | | | |
| (in thousands) | | Operating Leases | | Financing Leases |
| 2026 | | $ | 28,530 | | | $ | 627 | |
| 2027 | | 24,969 | | | 338 | |
| 2028 | | 20,403 | | | 345 | |
| 2029 | | 19,095 | | | 352 | |
| 2030 | | 11,447 | | | 268 | |
| Thereafter | | 33,290 | | | — | |
| Total minimum lease payments including interest | | $ | 137,734 | | | $ | 1,930 | |
| Less: Amounts representing interest | | 18,246 | | | 186 | |
| Present value of minimum lease principal payments | | 119,488 | | | 1,744 | |
| Less: Current portion of lease liabilities - operating and financing leases | | 24,412 | | | 556 | |
| Noncurrent portion of lease liabilities - operating and financing leases | | $ | 95,076 | | | $ | 1,188 | |
Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of December 31, 2024:
| | | | | | | | | | | | | | |
| (in thousands) | | Operating Leases | | Financing Leases |
| 2025 | | $ | 26,799 | | | $ | 2,869 | |
| 2026 | | 24,578 | | | 1,233 | |
| 2027 | | 21,101 | | | 338 | |
| 2028 | | 16,427 | | | 345 | |
| 2029 | | 15,046 | | | 352 | |
| Thereafter | | 27,482 | | | 268 | |
| Total minimum lease payments including interest | | $ | 131,433 | | | $ | 5,405 | |
| Less: Amounts representing interest | | 15,814 | | | 374 | |
| Present value of minimum lease principal payments | | 115,619 | | | 5,031 | |
| Less: Current portion of lease liabilities - operating and financing leases | | 23,257 | | | 2,685 | |
| Noncurrent portion of lease liabilities - operating and financing leases | | $ | 92,362 | | | $ | 2,346 | |
Following is a summary of the Company’s leases within the consolidated statements of cash flows:
| | | | | | | | | | | | | | | | | | | | |
| | Fiscal Year |
| (in thousands) | | 2025 | | 2024 | | 2023 |
| Cash flows from operating activities impact: | | | | | | |
| Operating leases | | $ | 28,522 | | | $ | 32,102 | | | $ | 33,013 | |
| Interest payments on financing lease obligations | | 156 | | | 321 | | | 447 | |
| Total cash flows from operating activities impact | | $ | 28,678 | | | $ | 32,423 | | | $ | 33,460 | |
| | | | | | |
| Cash flows from financing activities impact: | | | | | | |
| Principal payments on financing lease obligations | | $ | 1,809 | | | $ | 2,488 | | | $ | 2,303 | |
| Total cash flows from financing activities impact | | $ | 1,809 | | | $ | 2,488 | | | $ | 2,303 | |
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.