6.
Leases

The Company is a lessee under leases of manufacturing facilities, office spaces, machinery, certain office equipment and vehicles. The Company’s leases primarily consist of operating leases with remaining lease terms between one year and ten years. Finance leases are immaterial to the Company’s consolidated financial statements.

Some of the lease agreements the Company enters into include Company options to either extend and/or early terminate the lease, the costs of which are included in the Company’s operating lease liabilities to the extent that such options are reasonably certain of being exercised. Leases with renewal options allow the Company to extend the lease term typically between one and five years per option, some of its leases have multiple options to extend. When determining if a renewal option is reasonably certain of being exercised, the Company considers several economic factors, including but not limited to, the significance of leasehold improvements incurred on the property, whether the asset is difficult to replace, underlying contractual obligations, or specific characteristics unique to that particular lease that would make it reasonably certain that the Company would exercise such options.

Future minimum lease payments under the Company’s leases as of December 31, 2025 were as follows:

For the Years Ended December 31,

 

Amounts in thousands

 

2026

 

$

27,619

 

2027

 

 

26,332

 

2028

 

 

26,250

 

2029

 

 

26,455

 

2030

 

 

23,098

 

2031 and thereafter

 

 

43,157

 

Total future minimum lease payments

 

 

172,911

 

Less amount of lease payment representing interest

 

 

(25,176

)

Total operating lease liabilities

 

$

147,735

 

Operating lease liabilities

 

 

21,559

 

Noncurrent operating lease liabilities

 

 

126,176

 

Total operating lease liabilities

 

$

147,735

 

Lease expense or operating lease cost is recognized on a straight-line basis over the lease term, and variable lease cost is recognized in the period incurred. For the years ended December 31, 2025, 2024 and 2023, total lease cost is comprised of the following:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(Amounts in thousands)

 

Operating lease cost

 

$

25,200

 

 

$

24,234

 

 

$

20,981

 

Variable lease cost

 

 

4,458

 

 

 

4,482

 

 

 

4,075

 

Lease cost

 

$

29,658

 

 

$

28,716

 

 

$

25,056

 

The following tables represent other information related to leases:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(Amounts in thousands)

 

Cash payments included in operating cash flows from leases

 

$

(25,785

)

 

$

(23,806

)

 

$

(17,862

)

Assets acquired under operating leases

 

$

5,352

 

 

$

37,894

 

 

$

4,335

 

 

 

 

December 31,

 

 

 

2025

 

 

2024

 

Weighted average remaining lease term (years)

 

 

6.68

 

 

 

7.53

 

Weighted average discount rate

 

 

4.56

%

 

 

4.56

%

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Mar 14, 2025
2023Feb 22, 2024
2022Feb 22, 2023
2021Feb 17, 2022
2020Feb 24, 2021
2019Feb 26, 2020

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.