Leases We lease office space, distribution centers, land, vehicles and equipment. Lease agreements with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.
Certain lease agreements include one or more options to renew, with renewal terms that can extend the lease term from one to five years or more. The exercise of lease renewal options is at our sole discretion. Some agreements also include options to purchase the leased property. The estimated life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.
Certain of our lease agreements include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.
The following table provides information about the financial statement classification of our lease balances reported within the consolidated balance sheets as of December 31, 2025 and 2024 (in thousands):
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| | December 31, |
| Leases | Classification | 2025 | | 2024 |
| Assets | | | | |
| Operating lease assets | Other assets | $ | 73,180 | | | $ | 76,530 | |
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| Liabilities | | | | |
| Current | | | | |
| Operating lease liabilities | Accrued expenses and other current liabilities | $ | 19,633 | | | $ | 18,452 | |
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| Non-current | | | | |
| Operating lease liabilities | Other liabilities | 60,416 | | | 65,898 | |
| Total lease liabilities | | $ | 80,049 | | | $ | 84,350 | |
The following table provides information about the financial statement classification of our lease expenses reported within the consolidated statement of operations for the years ended December 31, 2025 and 2024 (in thousands):
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| | December 31, |
| Lease cost | Classification | 2025 | | 2024 |
Operating lease cost (a) | Selling and administrative expenses | $ | 21,416 | | | $ | 24,008 | |
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| (a) | Excludes short-term and variable lease costs, which are immaterial. |
Future minimum lease payments under non-cancelable leases as of December 31, 2025 are as follows (in thousands):
| | | | | | | | | |
| Operating leases | | | | |
| 2026 | $ | 22,981 | | | | | |
| 2027 | 20,188 | | | | | |
| 2028 | 15,476 | | | | | |
| 2029 | 12,065 | | | | | |
| 2030 | 8,241 | | | | | |
| After 2030 | 12,045 | | | | | |
| Total lease payments | 90,996 | | | | | |
| Less: Interest | (10,947) | | | | | |
| Present value of lease liabilities | $ | 80,049 | | | | | |
The following table provides information about the remaining lease terms and discount rates applied as of December 31, 2025 and 2024:
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| December 31, |
| 2025 | | 2024 |
| Weighted average remaining lease term (years): | | | |
| Operating leases | 5.26 | | 5.82 |
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| Weighted average discount rate (%): | | | |
| Operating leases | 4.89 | | | 4.64 | |
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The following table provides other information related to leases for the years ended December 31, 2025 and 2024 (in thousands):
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| December 31, |
| 2025 | | 2024 |
Cash paid for amounts included in the measurement of lease liabilities: | | | |
| Operating cash flows from operating leases | $ | 22,609 | | | $ | 28,734 | |
Leased assets obtained in exchange for new operating lease liabilities(a) | 11,814 | | | 19,906 | |
(a) Includes operating lease assets acquired as part of the Inspire11 and Sekuro acquisitions of $3,505,000 and $2,130,000 in 2025, respectively. Includes operating lease assets acquired as part of the Infocenter acquisition of $3,706,000 in 2024.