Leases
We lease certain factories, service and distribution locations, offices, and equipment under operating leases. Our operating leases have initial lease terms ranging from one to 10 years, some of which include options to extend or renew the leases for up to 10 years. Certain lease agreements contain provisions for future rent increases. Our leases do not contain material residual value guarantees, and finance leases are not material.
The components of operating lease expense are as follows:
| | | | | | | | | | | | | |
| In thousands | Year Ended December 31, | |
| 2025 | | 2024 | | |
| Operating lease cost | $ | 13,699 | | | $ | 22,563 | | | |
| Variable lease cost | 3,493 | | | 3,640 | | | |
| Total operating lease cost | $ | 17,192 | | | $ | 26,203 | | | |
Supplemental cash flow information related to operating leases is as follows:
| | | | | | | | | | | |
| In thousands | Year Ended December 31, |
| 2025 | | 2024 |
| Cash paid for amounts included in the measurement of operating lease liabilities | $ | 18,353 | | | $ | 18,741 | |
| Right-of-use assets obtained in exchange for operating lease liabilities | 10,501 | | | 9,351 | |
Supplemental balance sheet information related to operating leases is as follows:
| | | | | | | | | | | |
| In thousands | December 31, 2025 | | December 31, 2024 |
| Operating lease right-of-use assets, net | $ | 29,341 | | | $ | 28,957 | |
| | | |
| Other current liabilities | 15,828 | | | 14,584 | |
| Operating lease liabilities | 19,623 | | | 25,350 | |
| Total operating lease liability | $ | 35,451 | | | $ | 39,934 | |
| Weighted average remaining lease term - Operating leases | 3.8 years | | 3.8 years |
| Weighted average discount rate - Operating leases | 4.6 | % | | 4.6 | % |
Amounts due under operating lease liabilities as of December 31, 2025 are as follows:
| | | | | |
| In thousands | December 31, 2025 |
| 2026 | $ | 16,818 | |
| 2027 | 8,031 | |
| 2028 | 4,694 | |
| 2029 | 3,013 | |
| 2030 | 1,646 | |
| Thereafter | 4,237 | |
| Total lease payments | 38,439 | |
| Less: imputed interest | (2,988) | |
| Total operating lease liability | $ | 35,451 | |
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.