Note F—Leases
The Company has operating leases for corporate and field offices, and certain equipment. The Company’s leases have remaining lease terms of less than one year to 11 years, some of which include options to extend the leases for up to seven years, and some of which include options to terminate the leases within one year. Operating lease expense was $79.1 million, $82.5 million and $89.0 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Supplemental cash flow information related to leases consisted of the following (in thousands):
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Cash paid for operating lease liabilities | | $ | 79,915 | | | $ | 91,143 | | | $ | 94,633 | |
| Right-of-use assets obtained in exchange for new operating lease liabilities | | $ | 75,613 | | | $ | 78,613 | | | $ | 91,762 | |
| | | | | | |
Supplemental balance sheet information related to leases consisted of the following:
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Weighted average remaining lease term for operating leases | | 4.6 years | | 4.6 years | | 4.3 years |
| Weighted average discount rate for operating leases | | 4.2 | % | | 3.9 | % | | 3.2 | % |
Future minimum lease payments under noncancelable leases as of December 31, 2025, were as follows (in thousands):
| | | | | | | | |
| 2026 | | $ | 79,286 | |
| 2027 | | 59,736 | |
| 2028 | | 44,995 | |
| 2029 | | 32,942 | |
| 2030 | | 22,317 | |
| Thereafter | | 34,217 | |
| Less: Imputed interest | | (27,955) | |
| Present value of operating lease liabilities (a) | | $ | 245,538 | |
(a) Includes current portion of $69.8 million for operating leases.
As of December 31, 2025, the Company had additional future minimum lease obligations totaling $73.0 million under executed operating lease contracts that had not yet commenced. These operating leases include agreements for corporate and field office facilities with lease terms of three years to 11 years.
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.