Leases

We have operating and finance leases for our manufacturing facilities, warehouses, office space, automobiles, and certain equipment. Our leases have remaining lease terms of up to nine years, some of which may include one or more five-year renewal options. We have not included any of the renewal options in our operating lease payments, as we concluded that it is not reasonably certain that we will exercise any of these renewal options. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Operating lease expense is recognized on a straight-line basis over the lease term. Finance leases are not material.

The following tables provide quantitative disclosures related to our operating leases and includes all operating leases acquired from the date of the acquisition (in thousands, except where otherwise indicated):


	Year Ended December 31,
Balance Sheet Information	2025		2024
Assets
Operating lease right-of-use assets	$	105,178	$	109,899

Liabilities
Sundry payables and accrued expenses	$	21,990	$	19,992
Noncurrent operating lease liabilities	93,381		98,214
Total operating lease liabilities	$	115,371	$	118,206

Weighted Average Remaining Lease Term	6.9 years		7.7 years
Weighted Average Discount Rate	5.1%		5.0%


	Year Ended December 31,
	2025		2024
Lease Expense
Operating lease expense	$	24,701	$	19,993
Variable and other lease expense(a)	7,240		3,907
Total lease costs	$	31,941	$	23,900

(a) Relates to non-lease components such as maintenance, property taxes, etc., and operating lease expense for leases with an initial term of 12 months or less which are not material.


	Year Ended December 31,
	2025		2024
Supplemental Cash Flow Information
Cash paid for the amounts included in the measurement of lease liabilities	$	22,719	$	18,365
Right-of-use assets obtained in exchange for new lease obligations(a)	$	11,141	$	17,873

(a) The year ended December 31, 2025 primarily includes $5.7 million of right-of-use assets related to the lease modification and extension for our manufacturing facility in Reynosa, Mexico and $2.8 million of right-of-use assets related to our new warehouse in Niopolomice, Poland. The year ended December 31, 2024 primarily includes $4.7 million of right-of-use assets related to the lease modification and extension for our manufacturing facility in Bialystok, Poland and $10.8 million of right-of-use assets related to the new lease agreement for our manufacturing facility in Reynosa, Mexico.

Minimum Lease Payments

At December 31, 2025, we are obligated to make the following minimum operating lease payments through 2034 (in thousands):


2026	$	22,830
2027	20,316
2028	16,937
2029	15,887
2030	16,539
Thereafter	45,885
Total lease payments	138,394
Less: Interest	(23,023)
Present value of lease liabilities	$	115,371

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.

STANDARD MOTOR PRODUCTS, INC. Leases Disclosure

About Leases Disclosures

Other Available Disclosures