LEASES
We determine whether an arrangement contains a lease at inception. We have operating leases for office space, apartments, vehicles, and machinery and equipment. Our operating leases have lease terms of less than one year to ten years. Finance leases are not considered significant to our Consolidated Balance Sheets, Consolidated Statements of Income (Loss), or Consolidated Statements of Cash Flows.
We do not separate lease components from non-lease components (e.g., common area maintenance, property taxes, and insurance) but account for both components in a contract as a single lease component.
The components of lease expense are as follows:
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| (In thousands) | | 2025 | | 2024 | | 2023 |
| Operating | | $ | 11,591 | | | $ | 15,501 | | | $ | 20,064 | |
| Variable | | 655 | | | 640 | | | 348 | |
| Short-term and other | | 105,079 | | | 107,650 | | | 85,345 | |
| Sublease income | | (848) | | | (805) | | | (81) | |
| Total lease expense | | $ | 116,477 | | | $ | 122,986 | | | $ | 105,676 | |
Supplemental balance sheet information related to our operating leases is as follows:
| | | | | | | | | | | | | | |
| | As of December 31, |
| (In thousands) | | 2025 | | 2024 |
| Right-of-use assets (recorded in other non-current assets) | | $ | 29,255 | | | $ | 37,448 | |
| | | | |
| Current lease liabilities (recorded in other accrued liabilities) | | $ | 10,784 | | | $ | 10,968 | |
| Long-term lease liabilities (recorded in other non-current liabilities) | | 30,416 | | | 33,728 | |
| Total lease liabilities | | $ | 41,200 | | | $ | 44,696 | |
During the year ended December 31, 2025, we recognized additional right-of-use assets of $10.2 million from newly executed operating leases.
The weighted average remaining lease term and discount rate for our operating leases as of December 31, 2025 were 4.50 years and 5.3%, respectively.
Maturities of operating lease liabilities as of December 31, 2025 were as follows:
| | | | | | | | |
| (In thousands) | | Payments due |
| 2026 | | $ | 12,599 | |
| 2027 | | 10,749 | |
| 2028 | | 7,970 | |
| 2029 | | 6,208 | |
| 2030 | | 4,166 | |
| After 2030 | | 4,350 | |
| Total minimum lease payments | | $ | 46,042 | |
| Less: Imputed interest | | (4,842) | |
| Total lease liabilities | | $ | 41,200 | |
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.