Leases

12 Months Ended

Dec. 31, 2025

Most of the leases we enter into are for equipment, buildings and vehicles as part of our ongoing operations. We determine if an arrangement contains a lease at inception of a contract and account for all leases in accordance with ASC 842 - Leases.

Lessee accounting

The leases we have entered into as part of our ongoing operations are considered operating leases and are recognized on the Consolidated Balance Sheets as operating lease right-of-use assets, current operating lease liabilities and noncurrent operating lease liabilities. The corresponding lease costs are included in cost of revenue and selling, general and administrative expenses on the Consolidated Statements of Operations.

Generally, the leases for vehicles and equipment have a term of five years or less and buildings have a longer term of up to 35 years or more. To date, we do not have any residual value guarantee amounts probable of being owed to a lessor, financing leases or material agreements with related parties.

The following tables provide information on operating leases at and for the years ended December 31:


	2025		2024		2023
	(In thousands)
Lease costs:
Operating lease cost	$	18,568	$	18,844	$	18,199
Variable lease cost	221		337		383
Short-term lease cost	52,705		56,373		53,987
Total lease costs	$	71,494	$	75,554	$	72,569


	2025			2024
	(Dollars in thousands)
Weighted average remaining lease term	2.15 years			1.95 years
Weighted average discount rate	5.81		%	5.65		%
Cash paid for amounts included in the measurement of lease liabilities	$	18,568		$	18,844

The reconciliation of future undiscounted cash flows to operating lease liabilities presented on the Consolidated Balance Sheet at December 31, 2025, was as follows (in thousands):


2026	$	17,508
2027	14,022
2028	10,252
2029	6,351
2030	3,342
Thereafter	9,425
Total	60,900
Less discount	8,311
Total operating lease liabilities	$	52,589