Leases
The Company leases facilities for its offices, research and development center, and manufacturing facilities in mainland China, Hong Kong, Taiwan, and the United States. Lease terms vary based on the nature of operations and market dynamics; however, all leased facilities are classified as operating leases with remaining lease terms between one and seven years.
The following table presents operating lease costs ($ in thousands). Total lease expense related to short-term leases was insignificant for those periods presented.
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| | | | | |
| Operating fixed lease cost | 9,339 | | | 8,751 | | | 8,691 | |
The following table presents operating cash flows related to leases ($ in thousands):
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| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| | | | | |
| Cash paid for amounts included in measurement of lease liabilities | 8,692 | | | 8,831 | | | 9,317 | |
| Non-cash operating lease liabilities arising from obtaining operating right-of-use assets | 6,050 | | | 15,150 | | | 3,668 | |
The maturities of lease liabilities in accordance with ASC 842, Leases in each of the next five years and thereafter were as follows ($ in thousands):
| | | | | |
| Year Ended
December 31, 2025 |
| |
| 2026 | 6,598 | |
| 2027 | 5,655 | |
| 2028 | 4,477 | |
| 2029 | 2,875 | |
| 2030 | 512 | |
| Thereafter | 322 | |
| Total lease payments | 20,439 | |
| Less: imputed interest | (710) | |
| Present value of minimum operating lease payments | 19,729 | |
Weighted-average remaining lease terms and discount rates were as follows:
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Weighted-average remaining lease term | 3.5 years | | 3.7 years |
| Weighted-average discount rate | 3.2 | % | | 3.4 | % |
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.