Leases
The majority of the Company's lease obligations are non-cancelable operating leases for certain equipment and facilities. The Company's finance leases are for certain equipment as part of the Company's acquisition of Aarts. Leases with an initial term of 12 months or less are not recorded on the balance sheet; expense related to these leases is recognized on a straight-line basis over the lease term.
Supplemental balance sheet information related to the Company's leases are shown below (dollars in thousands):
Balance Sheet LocationDecember 31, 2025December 31, 2024
Assets
Operating leasesOperating lease right-of-use assets$31,800 $32,440 
Finance leases
Property and equipment, net (a)
2,150 2,110 
Total lease assets$33,950 $34,550 
Liabilities
Current:
Operating leasesLease liabilities, current portion$3,480 $5,540 
Finance leasesLease liabilities, current portion620 460 
Long-term:
Operating leasesLease liabilities31,080 29,080 
Finance leasesLease liabilities730 1,160 
Total lease liabilities$35,910 $36,240 
__________________________
(a)     Finance leases were recorded net of accumulated depreciation of $0.7 million and $0.4 million as of December 31, 2025 and 2024, respectively.
The components of lease expense are as follows (dollars in thousands):
Year ended December 31,
Statement of Income Location
202520242023
Operating lease costCost of sales and Selling, general and administrative expenses$8,410 $7,410 $9,170 
Finance lease cost:
  Depreciation of lease assetsCost of sales240 220 220 
  Interest on lease liabilitiesInterest expense40 50 60 
Short-term, variable and other lease costsCost of sales and Selling, general and administrative expenses3,550 3,440 3,110 
Total lease cost$12,240 $11,120 $12,560 
Maturities of lease liabilities are as follows (dollars in thousands):
Year ended December 31,
Operating Leases(a)
Finance Leases(a)
2026$8,900 $650 
20277,690 750 
20286,750 — 
20295,570 — 
20304,330 — 
Thereafter6,450 — 
Total lease payments39,690 1,400 
Less: Imputed interest(5,130)(50)
Present value of lease liabilities$34,560 $1,350 
__________________________
(a)     The maturity table excludes cash flows associated with exited lease facilities. Liabilities for exited lease facilities are included in accrued liabilities and other long-term liabilities in the accompanying consolidated balance sheet.
Other information related to the Company's leases are as follows (dollars in thousands):
 
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$7,610 $7,150 $8,220 
Operating cash flows from finance leases40 50 60 
Financing cash flows from finance leases500 480 450 
Lease assets obtained in exchange for new lease liabilities:
Operating leases5,250 4,760 8,310 
Finance leases— — 2,620 
The weighted-average remaining term of the Company's operating leases and finance leases as of December 31, 2025, is 5.6 and 1.6 years, respectively. The weighted-average discount rate for operating and finance leases as of December 31, 2025, is 4.4% and 2.6%, respectively.
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Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Feb 27, 2025
2023Feb 29, 2024
2022Feb 23, 2023
2021Mar 1, 2022
2020Feb 25, 2021
2019Feb 27, 2020
2018Feb 28, 2019
2017Feb 27, 2018
2016Feb 28, 2017
2015Feb 26, 2016

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.