LEASES
The Company leases certain warehouses, office spaces, land, vehicles and equipment under operating lease agreements. The remaining terms of these leases range from less than 1 year to 16 years. The operating lease expense for the years ended December 31, 2025, 2024 and 2023, totaled $6,040, $6,364 and $4,529, respectively. The cash paid for amounts included in the measurement of lease liabilities included in the operating cash flows from operating leases was $8,510, $5,668 and $6,110 for the years ended December 31, 2025, 2024 and 2023, respectively. The Company does not have any finance lease arrangements.
The Company's operating lease assets and lease liabilities consist of the following as of December 31, 2025 and 2024:
| | | | | | | | | | | | | | | | | | | | |
| | | | December 31, |
| Account | | Classification | | 2025 | | 2024 |
| Right-of-use assets | | Other assets | | $ | 17,006 | | | $ | 14,524 | |
| | | | | | |
| Short-term lease liabilities | | Accrued expenses and other current liabilities | | 5,074 | | | 4,835 | |
| Long-term lease liabilities | | Other long-term liabilities and deferred income taxes | | 12,176 | | | 13,124 | |
| Total lease liabilities | | | | $ | 17,250 | | | $ | 17,959 | |
The table below presents the maturities of operating lease liabilities as of December 31, 2025:
| | | | | |
| 2026 | $ | 5,692 | |
| 2027 | 4,679 | |
| 2028 | 3,324 | |
| 2029 | 1,924 | |
| 2030 | 1,045 | |
| Thereafter | 2,330 | |
| Total future minimum lease payments | 18,994 | |
| Less: imputed interest | (1,744) | |
| Present value of lease liabilities | $ | 17,250 | |
Other information relevant to the Company's operating leases consist of the following as of December 31, 2025 and 2024:
| | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 |
| Weighted-average remaining lease term | 5.08 years | | 5.41 years |
| Weighted-average discount rate | 4.52 | % | | 4.62 | % |
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.