Note 8 - Leases
The Company regularly enters into leases in the normal course of business. As of December 31, 2025, the leases in effect were related to land, buildings, vehicles, office equipment and other production equipment under operating leases with lease terms of up to 83 years. Some of the Company's leases include one or more renewal options, the exercise of which is generally at the Company's
discretion. In addition, certain lease arrangements may be terminated prior to their original expiration date at the Company’s discretion. The Company evaluates renewal and termination options at the lease commencement date to determine if the Company is reasonably certain to exercise the option on the basis of economic factors. The weighted average remaining lease term for the Company’s operating and financing leases as of December 31, 2025 was 18.8 years and 3.0 years, respectively.
Lease expense is recognized for these leases on a straight-line basis over the lease term with variable lease payments recognized in the period those payments are incurred. The components of operating and finance lease costs are recognized in Costs and expenses and Interest expense, respectively, on the Company’s Consolidated Statements of Income. The Company’s operating and finance lease costs for the years ended December 31 were as follows:
| | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Components of lease expense: | | | | | |
| Operating lease cost | $ | 2,438 | | | $ | 2,353 | | | $ | 2,767 | |
| | | | | | |
| Finance lease cost: | | | | | |
| Amortization of right-of-use assets | 196 | | | 160 | | | 119 | |
| Interest on lease liabilities | 55 | | | 49 | | | 17 | |
| Total lease cost | $ | 2,689 | | | $ | 2,562 | | | $ | 2,903 | |
The discount rate implicit within each lease is often not determinable and, therefore, the Company establishes the discount rate based on its incremental borrowing rate. The incremental borrowing rate for the Company’s leases is determined based on lease term and currency in which lease payments are made. The weighted average discount rate used to measure the Company’s operating and finance lease liabilities as of December 31, 2025 was 5.58% and 6.44%, respectively. The weighted average discount rate used to measure the Company’s operating and finance lease liabilities as of December 31, 2024 was 5.53% and 6.96%, respectively.
Future maturities of the Company’s lease liabilities as of December 31, 2025 are as follows:
| | | | | | | | | | | |
| | Year Ended December 31, 2025 |
| | Operating Leases | | Finance Leases |
| 2026 | $ | 2,159 | | | $ | 248 | |
| 2027 | 1,506 | | | 191 | |
| 2028 | 1,236 | | | 234 | |
| 2029 | 583 | | | 69 | |
| 2030 and thereafter | 6,700 | | | 6 | |
| Total lease payments | 12,184 | | | 748 | |
| Less amount of lease payment representing interest | 4,505 | | | 127 | |
| Total present value of lease payments | $ | 7,679 | | | $ | 621 | |
Amounts recognized as finance lease obligations are reported in Accrued expense and other liabilities and Other noncurrent liabilities in the Consolidated Balance Sheets.
The Company had de minimis sublease income for the years ended December 31, 2025 and 2024.
Supplemental cash flow information related to leases for the years ended December 31 were as follows:
| | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Supplemental cash flow information | | | | | |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | |
| Operating cash flows for operating leases | $ | 2,442 | | | $ | 2,341 | | | $ | 2,775 | |
| Operating cash flows for finance leases | 55 | | | 49 | | | 17 | |
| Financing cash flows for finance leases | 258 | | | 189 | | | 171 | |