LEASES
Supplemental information about our operating leases follows:
| | | | | | | | | | | | | | | | | | | | |
| | | | December 31, |
| (in thousands) | | 2025 | | 2024 |
| Assets: | | | | |
| | Right-of-use operating lease assets | | $ | 349,751 | | | $ | 334,721 | |
| | | | | | |
| Liabilities: | | | | |
| | Current | | $ | 128,453 | | | $ | 131,415 | |
| | Noncurrent | | 257,269 | | | 238,325 | |
| Lease liabilities | | $ | 385,722 | | | $ | 369,740 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | December 31, |
| | | | 2025 | | 2024 |
| Lease Term and Discount Rate: | | | | |
| Weighted-average remaining lease term (years) | | 5.8 | | 6.0 |
| | | | | | | |
| | Weighted-average discount rate | | 6.0 | % | | 5.9 | % |
No impairments of right-of-use operating leases were recorded in the years ended December 31, 2025 and 2024.
Operating lease cost reflects the lease expense resulting from amortization over the respective lease terms of our operating leases with initial lease terms greater than 12 months. Our short-term lease cost consists of expense for our operating leases with initial lease terms of 12 months or less that are not recorded on our balance sheet. The components of lease cost are as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | Year ended December 31, | |
| (in thousands) | | 2025 | | 2024 | | | |
| Lease Cost: | | | | | | | |
| Operating lease cost | Operating lease cost | | $ | 148,255 | | | $ | 134,708 | | | | |
| Short-term lease cost | Short-term lease cost | | 49,392 | | | 56,477 | | | | |
| Total Lease Cost | | $ | 197,647 | | | $ | 191,185 | | | | |
As of December 31, 2025, future maturities of lease liabilities for our operating leases with an initial lease term of more than 12 months were as follows:
| | | | | | | | |
| (in thousands) | | |
| For the year ended December 31, | | |
| 2026 | | $ | 145,945 | |
| 2027 | | 83,641 | |
| 2028 | | 57,991 | |
| 2029 | | 32,174 | |
| 2030 | | 26,182 | |
| Thereafter | | 107,145 | |
| Total lease payments | | 453,078 | |
| Less: Interest | | (67,356) | |
| Present Value of Operating Lease Liabilities | | $ | 385,722 | |
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.