5. Leases

The Company leases certain office space, warehouses, land, and equipment under operating lease arrangements. Some of the Company’s leases include options to extend the leases for up to an additional five years. Some of the Company’s lease agreements also include rental payments that are adjusted periodically for inflation (i.e., Consumer Price Index).

The Company recorded operating lease expense, which includes short-term lease expense and variable lease costs, of $14.0 million, $13.4 million, and $11.9 million during the years ended December 31, 2025, 2024, and 2023, respectively.

For the years ended December 31, 2025, 2024, and 2023, the Company paid $13.3 million, $11.5 million, and $10.3 million, respectively, in cash for operating leases, not including short-term lease expense or variable lease costs. The Company entered into operating leases that resulted in $12.0 million, for the year ended December 31, 2025, and $9.0 million, for each of the years ended December 31, 2024 and 2023, of right-of-use assets in exchange for operating lease obligations.

The Company included $39.9 million and $36.4 million of right-of-use assets in Other Assets on the Company’s Consolidated Balance Sheets as of December 31, 2025 and 2024, respectively. The Company included $29.2 million and $28.7 million of operating lease liabilities in Other Liabilities on the Company’s Consolidated Balance Sheets as of December 31, 2025 and 2024, respectively. The Company included $10.6 million and $7.7 million of operating lease liabilities in Other Accrued Expenses on the Company’s Consolidated Balance Sheets as of December 31, 2025 and 2024, respectively.

The Company’s weighted average remaining operating lease term was 5.6 years and 6.9 years as of December 31, 2025 and 2024, respectively. The Company’s weighted average discount rate for operating leases was 4.57% and 4.20% as of December 31, 2025 and 2024, respectively.

As of December 31, 2025, maturities of operating lease liabilities for future annual periods are as follows:

(In thousands)
Year ending December 31,
2026	$	12,296
2027		10,531
2028		5,755
2029		4,767
2030		3,662
Thereafter		8,619
Total lease payments		45,630
Less imputed interest		(5,805	)
Present value of lease liabilities	$	39,825

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.

SENSIENT TECHNOLOGIES CORP Leases Disclosure

About Leases Disclosures

Other Available Disclosures