3. Commitments, Contingencies and Uncertainties

The Company has contractual obligations and commitments in the form of finance leases, operating leases and purchase commitments.

At December 31, 2025, the Company was committed under non-cancellable operating lease agreements requiring minimum annual rentals payable as follows (in thousands):

 

 

Amount

 

2026

 

$

38,005

 

2027

 

 

34,821

 

2028

 

 

28,909

 

2029

 

 

23,453

 

2030

 

 

13,980

 

Thereafter

 

 

28,993

 

Total

 

$

168,161

 

 

Rent expense was $43.4 million, $42.5 million, and $37.2 million for the years ended December 31, 2025, 2024 and 2023, respectively. Management expects that in the normal course of business, leases will be renewed or replaced as they expire. Finance and operating leases are discussed further in Note 4, "Leases."

Purchase commitments related to capital expenditures were $14.1 million at December 31, 2025. As of December 31, 2025 and 2024, the Company had $10.5 million and $24.4 million, respectively, of capital expenditures accrued for in accounts payable.

Other

The Company is subject to legal proceedings that arise in the ordinary course of its business. Management believes that adequate provisions for resolution of all contingencies, claims and pending litigation have been made for probable and estimable losses and that the ultimate outcome of these actions will not have a material adverse effect on its financial condition but could have a material adverse effect on its results of operations in a given quarter or annual period.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 24, 2025
2023Feb 23, 2024

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.