Leases
We lease real estate space under non-cancelable operating lease agreements for commercial and industrial space. Facilities-related operating leases have remaining terms of 0.3 to 9.4 years, and some leases include options to extend up to 10 years. Other leases for automobiles, manufacturing and office and computer equipment have remaining lease terms of 0.3 to 3.0 years. These leases are primarily operating leases; financing leases are not
material. We did not include any renewal options in our lease terms for calculating the lease liabilities as we are not reasonably certain we will exercise the options at this time. The weighted-average remaining lease term for the lease obligations was 6 years as of December 31, 2025, and the weighted-average discount rate was 5.1%.
The components of lease expense related to operating leases were as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Lease expense: | | | | | |
| Operating lease expense | $ | 3,103 | | | $ | 3,695 | | | $ | 3,671 | |
| Short-term lease expense | 323 | | | 404 | | | 472 | |
| Variable and other lease expense | 1,092 | | | 1,055 | | | 1,020 | |
| | $ | 4,518 | | | $ | 5,154 | | | $ | 5,163 | |
Future minimum payments under our non-cancelable lease obligations were as follows as of December 31, 2025 (in thousands):
| | | | | |
| 2026 | $ | 3,526 | |
| 2027 | 3,291 | |
| 2028 | 2,795 | |
| 2029 | 1,919 | |
| 2030 | 1,960 | |
| Thereafter | 5,608 | |
| Total minimum lease payments | 19,099 | |
| Less: interest | (2,892) | |
| Present value of net minimum lease payments | 16,207 | |
| Less: current portion of lease liabilities | (2,776) | |
| Total long-term lease liabilities | $ | 13,431 | |
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.