15. Leases

Our lease portfolio consists primarily of real estate facilities for manufacturing, distribution, warehousing and office use purposes under operating leases.

The components of lease expenses were as follows (in thousands):

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

Operating lease expense

 

$

17,499

 

 

$

15,607

 

 

$

12,887

 

Variable lease expense

 

 

8,898

 

 

 

6,642

 

 

 

7,540

 

Total lease expense

 

$

26,397

 

 

$

22,249

 

 

$

20,427

 

Supplemental cash flow information related to operating leases was as follows (in thousands):

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

 

 

Cash paid for amounts included in the measurement of operating lease liabilities

 

$

17,802

 

 

$

16,415

 

 

$

13,433

 

Right-of-use assets recognized in exchange for operating lease obligations

 

 

17,643

 

 

 

29,162

 

 

 

1,604

 

As of December 31, 2025, our operating leases had a weighted average remaining lease term of 7.2 years and a weighted average discount rate of 5.8%. As of December 31, 2024, our operating leases had a weighted average remaining lease term of 6.4 years and a weighted average discount rate of 5.0%.

The following table summarizes the maturity of operating lease liabilities as of December 31, 2025 (in thousands):

 

 

Amounts

 

 

 

 

 

2026

 

$

17,283

 

2027

 

 

12,459

 

2028

 

 

9,803

 

2029

 

 

8,030

 

2030

 

 

7,504

 

Thereafter

 

 

31,416

 

Total future lease payments

 

 

86,495

 

Less: Imputed interest

 

 

(17,310

)

Present value of operating lease liabilities

 

$

69,185

 

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 26, 2025
2023Feb 27, 2024
2022Feb 27, 2023
2021Mar 1, 2022
2020Mar 11, 2021

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.