7. Leases
The Company's ROU assets and lease liabilities are discussed in Note 1 — Description of Business and Summary of Significant Accounting Policies.
The components of lease costs were as follows:
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| Years Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Operating Lease Costs: | | | | | |
| Fixed | $ | 66,752 | | | $ | 61,464 | | | $ | 57,409 | |
| Variable | 9,346 | | | 8,890 | | | 8,243 | |
| Short-term | 21,718 | | | 20,564 | | | 20,550 | |
Total(1) | $ | 97,816 | | | $ | 90,918 | | | $ | 86,202 | |
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(1) Finance lease cost and sublease income were immaterial.
Supplemental cash flow information related to leases was as follows:
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| Years Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| | | | | |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | |
| Operating cash flows for operating leases | $ | 65,302 | | | $ | 63,093 | | | $ | 57,607 | |
| Operating cash flows for finance leases | 479 | | | 443 | | | 318 | |
| Financing cash flows for finance leases | 5,347 | | | 4,316 | | | 3,231 | |
| Total | $ | 71,128 | | | $ | 67,852 | | | $ | 61,156 | |
| Right-of-use assets obtained in exchange for lease obligations: | | | | | |
| Operating leases | $ | 48,143 | | | $ | 49,021 | | | $ | 50,997 | |
| Financing leases | 3,197 | | | 4,469 | | | 3,539 | |
| Total | $ | 51,340 | | | $ | 53,490 | | | $ | 54,536 | |
Supplemental balance sheet information related to leases was as follows: | | | | | | | | | | | |
| | December 31, 2025 | | December 31, 2024 |
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| Operating Leases | | | |
| Right-of-use assets: | | | |
| Other assets and deferred charges | $ | 229,003 | | | $ | 208,379 | |
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| Lease liabilities: | | | |
| Other accrued expenses | $ | 52,366 | | | $ | 49,646 | |
| Other liabilities | 194,465 | | | 174,905 | |
| Total operating lease liabilities | $ | 246,831 | | | $ | 224,551 | |
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| Finance Leases | | | |
| Right-of-use assets: | | | |
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Property, plant and equipment, net (1) | $ | 10,422 | | | $ | 9,044 | |
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| Lease liabilities: | | | |
| Other accrued expenses | $ | 4,504 | | | $ | 3,543 | |
| Other liabilities | 5,145 | | | 5,603 | |
| Total finance lease liabilities | $ | 9,649 | | | $ | 9,146 | |
(1) Finance lease right-of-use assets are recorded net of accumulated depreciation of $16,924 and $12,378 for the years ended December 31, 2025 and December 31, 2024, respectively.
The aggregate future lease payments for operating and finance leases as of December 31, 2025 were as follows:
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| | Operating | | Finance |
| 2026 | $ | 61,264 | | | $ | 5,554 | |
| 2027 | 51,905 | | | 3,229 | |
| 2028 | 41,714 | | | 1,558 | |
| 2029 | 31,026 | | | 527 | |
| 2030 | 23,745 | | | 145 | |
| Thereafter | 79,795 | | | 14 | |
| Total lease payments | 289,449 | | | 11,027 | |
| Less interest | (42,618) | | | (1,378) | |
| Present value of lease liabilities | $ | 246,831 | | | $ | 9,649 | |
Average lease terms and discount rates were as follows: | | | | | | | | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 | | December 31, 2023 |
| Weighted-average remaining lease term (years) | | | | | |
| Operating leases | 7.0 | | 6.9 | | 7.2 |
| Finance leases | 2.5 | | 2.7 | | 3.0 |
| Weighted-average discount rate | | | | | |
| Operating leases | 4.2 | % | | 4.1 | % | | 4.0 | % |
| Finance leases | 4.2 | % | | 4.2 | % | | 3.9 | % |
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.