Leases
We have noncancelable leases for our buildings and growing facilities and we are obligated to make payments under noncancelable operating leases for automobiles used by our sales force.
The components of the lease expense for the years ended December 31, 2025, 2024 and 2023 were as follows (in thousands):
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| | | | | |
| Year Ended December 31, |
| Lease Cost | 2025 | | 2024 | | 2023 |
| Operating lease cost | $ | 23,922 | | | $ | 22,209 | | | $ | 19,394 | |
| Short-term lease cost | 7,485 | | | 7,441 | | | 6,290 | |
| Variable lease cost | 242 | | | 789 | | | 81 | |
| Sublease income | (1,047) | | | (472) | | | (22) | |
| Finance Lease Cost | | | | | |
| Amortization of leased asset | 490 | | | 413 | | | 481 | |
| Interest on lease liabilities | 370 | | | 442 | | | 377 | |
| Net lease cost | $ | 31,462 | | | $ | 30,822 | | | $ | 26,601 | |
Supplemental balance sheet information related to operating and finance leases was as follows (in thousands):
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| | | | |
| | December 31, |
| Leases | Classification | 2025 | | 2024 |
| Assets | | | | |
| Operating lease assets | Operating lease assets | $ | 58,880 | | | $ | 53,582 | |
| Finance lease assets | Property, plant and equipment | 2,804 | | | 3,917 | |
| Total lease assets | | $ | 61,684 | | | $ | 57,499 | |
| | | | |
| Liabilities | | | | |
| Current | | | | |
| Operating lease liabilities | Accrued liabilities | $ | 14,278 | | | $ | 14,331 | |
| Finance lease liabilities | Accrued liabilities | 439 | | | 448 | |
| Non-current | | | | |
| Operating lease liabilities | Operating lease liabilities, less current portion | 50,892 | | | 38,938 | |
| Finance lease liabilities | Other non-current liabilities | 3,440 | | | 4,561 | |
| Total lease liabilities | | $ | 69,049 | | | $ | 58,278 | |
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| | | | | |
| December 31, | | |
| Lease Term and Discount Rate | 2025 | | 2024 | | |
| Weighted-average remaining lease term (years) | | | | | |
| Operating leases | 4.0 | | 4.3 | | |
| Finance leases | 9.5 | | 10.4 | | |
| Weighted-average discount rate | | | | | |
| Operating leases | 6.9 | % | | 6.6 | % | | |
| Finance leases | 8.1 | % | | 7.6 | % | | |
Supplemental cash flow information related to operating and finance leases was as follows (in thousands):
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| Year Ended December 31, | | | | | | |
| 2025 | | 2024 | | 2023 | | | | | | |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | | | | | |
| Operating cash outflows from operating leases | $ | 20,733 | | | $ | 33,632 | | | $ | 20,646 | | | | | | | |
| Operating cash outflows from finance leases | 868 | | | 830 | | | 835 | | | | | | | |
| Financing cash outflows from finance leases | 370 | | | 442 | | | 377 | | | | | | | |
| Non-cash operating activities: | | | | | | | | | | | |
| Operating lease assets obtained in exchange for new operating lease liabilities | $ | 24,386 | | | $ | 25,819 | | | $ | 9,953 | | | | | | | |
| | | | | | | | | | | |
| De-recognition of operating lease asset on lease assignment / termination | 2,342 | | | 19,877 | | | 4,169 | | | | | | | |
| De-recognition of operating lease liability on lease assignment / termination | 2,300 | | | 21,297 | | | 4,457 | | | | | | | |
| De-recognition of finance lease asset on lease assignment / termination | 903 | | | — | | | — | | | | | | | |
| De-recognition of finance lease liability on lease assignment / termination | 1,023 | | | — | | | — | | | | | | | |
Maturities of operating and finance lease liabilities were as follows (in thousands):
| | | | | | | | | | | |
| Year Ending December 31, | Operating Leases | | Finance Leases |
| 2026 | $ | 18,031 | | | $ | 765 | |
| 2027 | 15,851 | | | 681 | |
| 2028 | 13,375 | | | 512 | |
| 2029 | 8,684 | | | 512 | |
| 2030 | 6,604 | | | 512 | |
| Thereafter | 16,678 | | | 2,647 | |
| Total lease payments | 79,223 | | 5,629 |
| Less imputed interest | (14,053) | | | (1,750) | |
| Present value of lease liabilities | $ | 65,170 | | | $ | 3,879 | |
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.