Leases
As of December 31, 2025, the future lease payments for operating and finance lease liabilities were as follows:
| | | | | | | | | | | |
| (in thousands) | Operating Leases | | Finance Leases |
| 2026 | $ | 78,841 | | | $ | 38,881 | |
| 2027 | 72,831 | | | 35,470 | |
| 2028 | 59,561 | | | 37,951 | |
| 2029 | 39,934 | | | 30,072 | |
| 2030 | 30,979 | | | 24,189 | |
| Thereafter | 93,458 | | | 24,718 | |
| Total lease payments | 375,604 | | | 191,281 | |
| Less: interest | (62,919) | | | (24,423) | |
| Present value of lease liabilities | $ | 312,685 | | | $ | 166,858 | |
Finance lease liabilities are included within long-term debt and current portion of long-term debt on the consolidated balance sheets.
The Company’s lease activity during the years ended December 31, 2025, 2024, and 2023 was as follows:
| | | | | | | | | | | | | | | | | |
| Years Ended December 31, |
Components of lease expense (in thousands) | 2025 | | 2024 | | 2023 |
| Finance Lease Expense | | | | | |
| Amortization of finance lease assets | $ | 17,963 | | | $ | 14,159 | | | $ | 16,945 | |
| Interest on obligations under finance leases | 7,636 | | | 6,350 | | | 3,777 | |
| Total finance lease expense | $ | 25,599 | | | $ | 20,509 | | | $ | 20,722 | |
| | | | | |
| Operating Lease Expense | | | | | |
| Fixed lease expense | | | | | |
| Costs of leasing and services | $ | 816 | | | $ | 1,101 | | | $ | 1,396 | |
| Selling, general and administrative | 89,254 | | | 80,199 | | | 67,374 | |
| | | | | |
| Short-term lease expense | | | | | |
| Costs of leasing and services | 28,743 | | | 28,758 | | | 26,010 | |
| Selling, general and administrative | 1,434 | | | 2,071 | | | 1,789 | |
| | | | | |
| Variable lease expense | | | | | |
| Costs of leasing and services | 205 | | | 762 | | | 2,109 | |
| Selling, general and administrative | 10,172 | | | 10,925 | | | 8,380 | |
| | | | | |
| Total operating lease expense | $ | 130,624 | | | $ | 123,816 | | | $ | 107,058 | |
Supplemental cash flow information related to leases for the years ended December 31, 2025, 2024, and 2023 was as follows:
| | | | | | | | | | | | | | | | | |
| Years Ended December 31, |
Supplemental Cash Flow Information (in thousands) | 2025 | | 2024 | | 2023 |
| Cash paid for the amounts included in the measurement of lease liabilities: | | | | | |
| Operating cash outflows from operating leases | $ | 88,014 | | | $ | 81,046 | | | $ | 68,889 | |
| Operating cash outflows from finance leases | $ | 7,796 | | | $ | 6,087 | | | $ | 3,715 | |
| Financing cash outflows from finance leases | $ | 25,272 | | | $ | 19,429 | | | $ | 16,510 | |
| | | | | |
| Right of use assets obtained in exchange for lease obligations | $ | 154,136 | | | $ | 92,343 | | | $ | 95,897 | |
| Assets obtained in exchange for finance leases | $ | 50,238 | | | $ | 46,253 | | | $ | 58,737 | |
Weighted-average remaining operating lease terms and the weighted average discount rates as of December 31 were as follows:
| | | | | | | | | | | |
| Lease Terms and Discount Rates | 2025 | | 2024 |
| Weighted-average remaining lease term - operating leases | 6.0 years | | 5.1 years |
| Weighted-average discount rate - operating leases | 5.7 | % | | 5.8 | % |
| Weighted-average remaining lease term - finance leases | 4.6 years | | 4.8 years |
| Weighted-average discount rate - finance leases | 5.0 | % | | 5.1 | % |
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.