LEASESThe components and classification of lease cost for the years ended December 31, 2025, 2024 and 2023 are as follows (in thousands): | | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| Finance lease cost: | | | | | |
| Amortization of lease assets | $ | 4,717 | | | $ | 2,575 | | | $ | 1,367 | |
| Interest on lease liabilities | 1,827 | | | 845 | | | 321 | |
| Finance lease cost | 6,544 | | | 3,420 | | | 1,688 | |
| Operating lease cost | 15,760 | | | 14,076 | | | 13,920 | |
| Short-term lease cost (leases with initial term of 12 months or less) | 421 | | | 257 | | | 305 | |
| Variable lease cost | 4,594 | | | 3,071 | | | 2,994 | |
| Sublease income | (1,431) | | | (929) | | | (904) | |
| Total lease cost | $ | 25,888 | | | $ | 19,895 | | | $ | 18,003 | |
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| Cost of sales | $ | 19,976 | | | $ | 15,566 | | | $ | 13,339 | |
| SG&A | 3,514 | | | 2,991 | | | 3,028 | |
| RD&E | 186 | | | 403 | | | 929 | |
| Restructuring and other charges | 385 | | | 90 | | | 386 | |
| Interest expense | $ | 1,827 | | | $ | 845 | | | $ | 321 | |
| Total lease cost | $ | 25,888 | | | $ | 19,895 | | | $ | 18,003 | |
The Company’s sublease income is derived primarily from certain real estate leases to several non-affiliated tenants under operating sublease arrangements.
Supplemental cash flow information related to leases for the years ended December 31, 2025, 2024 and 2023 is as follows (in thousands): | | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| Cash paid for operating leases | $ | 14,167 | | | $ | 12,557 | | | $ | 13,751 | |
| Cash paid for interest on finance leases | 1,827 | | | 845 | | | 320 | |
| Assets acquired under operating leases | 13,564 | | | 13,384 | | | 17,526 | |
| Assets acquired under finance leases | 13,860 | | | 18,300 | | | 4,085 | |
At December 31, 2025, the maturities of operating and finance lease liabilities were as follows (in thousands): | | | | | | | | | | | |
| Operating Leases | | Finance Leases |
| 2026 | $ | 14,055 | | | $ | 9,434 | |
| 2027 | 14,060 | | | 9,123 | |
| 2028 | 13,589 | | | 7,879 | |
| 2029 | 13,686 | | | 4,236 | |
| 2030 | 12,634 | | | 2,005 | |
| Thereafter | 53,454 | | | 10,648 | |
| Gross lease liabilities | 121,478 | | | 43,325 | |
| Less: imputed interest | (30,480) | | | (6,904) | |
| Present value of lease liabilities | 90,998 | | | 36,421 | |
| Less: current portion of lease liabilities | (9,099) | | | (7,843) | |
| Total long-term lease liabilities | $ | 81,899 | | | $ | 28,578 | |
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As of December 31, 2025, the Company did not have any leases that have not yet commenced.
(15.) LEASES (Continued)
The following table presents the weighted average remaining lease term and discount rate. | | | | | | | | | | | |
| December 31,
2025 | | December 31,
2024 |
| Weighted-average remaining lease term - operating leases (in years) | 9.2 | | 10.0 |
| Weighted-average remaining lease term - finance leases (in years) | 6.2 | | 8.0 |
| Weighted-average discount rate - operating leases | 6.3 | % | | 6.3 | % |
| Weighted-average discount rate - finance leases | 5.5 | % | | 5.7 | % |
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.