LEASES
The Company leases certain equipment, vehicles, office and storage facilities via various operating and financing lease agreements. Our leases have initial lease terms ranging from one year to seventeen years. Certain lease agreements require the Company to pay taxes, insurance, and maintenance, and provide for options to extend the term beyond the initial lease termination date. We use judgment to determine whether it is reasonably possible that we will extend the lease beyond the initial term and the length of the possible extension. Leases that have terms of less than 12 months are treated as short-term and we do not recognize right-of-use assets or lease liabilities for such leases. We generally estimate discount rates using our incremental borrowing rate, and based on other information available, at commencement date of a lease when determining the present value of future payments, as most of our leases do not provide an implicit rate.
The Company includes financing lease right-of-use assets in other assets, short-term financing lease liabilities in accrued expenses, and long-term financing lease liabilities in other liabilities on the consolidated balance sheet. Operating lease expense is recognized on a straight-line basis over the term of the lease, as a component of operating income on the consolidated statement of operations and
comprehensive income. Finance leases amortize the right-of-use assets and amortize the interest on the lease liability over the term of the lease.
Amounts reported in the consolidated balance sheet were as follows for the years ended December 31, 2025 and 2024:
| | | | | | | | | | | |
| December 31, |
| (In thousands) | 2025 | | 2024 |
| Asset: | | | |
| Operating lease right-of-use asset | $ | 63,786 | | | $ | 49,647 | |
| Finance lease right-of-use asset | 718 | | | 518 | |
| Total leased assets | $ | 64,504 | | | $ | 50,165 | |
| | | |
| Liabilities: | | | |
| Current: | | | |
| Operating lease liability | 14,738 | | | 10,249 | |
| Finance lease liability | 348 | | | 233 | |
| Long-term: | | | |
| Operating lease liability | 103,918 | | | 83,588 | |
| Finance lease liability | 436 | | | 298 | |
| Total lease liabilities | $ | 119,440 | | | $ | 94,368 | |
The table below summarizes the Company’s lease costs arising from the operating and financing lease obligations for the years ended December 31, 2025, 2024, and 2023:
| | | | | | | | | | | | | | | | | |
| Year Ended |
| December 31, |
| (In thousands) | 2025 | | 2024 | | 2023 |
| Lease expense: | | | | | |
| Operating lease expense | $ | 23,369 | | | $ | 25,272 | | | $ | 19,471 | |
| Finance lease expense | | | | | |
| Depreciation of right-of-use asset | 333 | | | 585 | | | 903 | |
| Interest expense on lease liabilities | 38 | | | 92 | | | 67 | |
| Total lease expense | $ | 23,740 | | | $ | 25,949 | | | $ | 20,441 | |
Future minimum lease payments under non-cancellable leases as of December 31, 2025 are as follows:
| | | | | | | | | | | |
| (In thousands) | Finance
Leases | | Operating
Leases |
| 2026 | $ | 380 | | | $ | 22,512 | |
| 2027 | 274 | | | 21,147 | |
| 2028 | 155 | | | 18,514 | |
| 2029 | 38 | | | 18,007 | |
| 2030 | 3 | | | 17,979 | |
| Thereafter | — | | | 57,956 | |
| Total minimum lease payments | $ | 849 | | | $ | 156,115 | |
| Less: amount representing interest | (65) | | | (37,459) | |
| Present value of obligations under leases | 784 | | | 118,656 | |
| Less: current portion | (348) | | | (14,738) | |
| Long-term lease obligations | $ | 436 | | | $ | 103,918 | |
The table below summarizes the Company’s supplemental cash flow information and assumptions used for the years ended December 31, 2025, 2024, and 2023:
| | | | | | | | | | | | | | | | | |
| Year Ended |
| December 31, |
| (In thousands, except weighted average lease term and discount rate) | 2025 | | 2024 | | 2023 |
| Other supplemental cash flow information: | | | | | |
| Cash paid for amounts included in measurement of lease liabilities | | | | | |
| Operating cash flows from operating leases | $ | 21,627 | | | $ | 14,300 | | | $ | 19,773 | |
| Operating cash flows for finance leases | 40 | | | 92 | | | 67 | |
| Financing cash flows for finance leases | 334 | | | 1,003 | | | 913 | |
| Total cash paid for amounts included in the measurement of lease liabilities | $ | 22,001 | | | $ | 15,395 | | | $ | 20,753 | |
| | | | | |
| Right-of-use assets obtained in exchange for lease obligations | | | | | |
| Operating leases | $ | 17,540 | | | $ | 2,289 | | | $ | 9,043 | |
| Financing leases | $ | 520 | | | $ | 394 | | | $ | — | |
| Weighted-average remaining lease term | | | | | |
| Operating leases | 7.6 | | 7.7 | | 14.9 |
| Financing leases | 3.5 | | 2.4 | | 2.6 |
| Weighted-average discount rate | | | | | |
| Operating leases | 7.7 | % | | 4.8 | % | | 8.3 | % |
| Financing leases | 5.9 | % | | 5.3 | % | | 4.4 | % |