LEASES
The components of lease cost were as follows for the years ended December 31:
| | | | | | | | | | | | | | | | | |
| (In thousands) | 2025 | | 2024 | | 2023 |
| Operating lease cost | $ | 71,275 | | | $ | 64,343 | | | $ | 61,247 | |
| Short-term lease cost | 3,039 | | | 3,587 | | | 4,969 | |
| Variable lease cost | 4,291 | | | 4,180 | | | 4,312 | |
| Total lease cost | $ | 78,605 | | | $ | 72,110 | | | $ | 70,528 | |
At December 31, 2025, the Company's operating leases had a weighted-average remaining lease term of 7.9 years and a weighted-average discount rate of 7.0 percent.
Cash Flows
Right-of-use assets of $96.9 million, $29.6 million, and $44.5 million were recognized as non-cash asset additions that resulted from new operating lease obligations during the years ended December 31, 2025, 2024, and 2023, respectively, which included $15.5 million, $5.5 million, and $0.4 million of right-of-use assets from acquisitions, respectively. Cash paid for amounts included in the present value of operating lease obligations and included in cash flows from operations was $63.2 million, $59.6 million, and $55.5 million for the years ended December 31, 2025, 2024, and 2023, respectively.
Future minimum lease payments under operating leases as of December 31, 2025 were as follows:
| | | | | | | | | | | |
| (In thousands) | | | |
| Year Ending December 31, | | | |
| 2026 | $ | 62,286 | | | |
| 2027 | 54,266 | | | |
| 2028 | 49,318 | | | |
| 2029 | 43,247 | | | |
| 2030 | 36,471 | | | |
| Thereafter | 135,371 | | | |
| Total future minimum lease payments | 380,959 | | | |
| Less interest | (90,738) | | | |
| Present value of operating lease liabilities | $ | 290,221 | | | |
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.