Leases

12 Months Ended

Dec. 31, 2025

NOTE 4 — Leases

We lease certain real estate, vehicles, and equipment. Our leases have remaining lease terms of one to 11 years, some of

which may include options to extend the leases, and some of which may include options to terminate the leases. The exercise of

lease renewal options is at our sole discretion. The depreciable lives of assets and leasehold improvements are limited by the

expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise.

The components of lease expense are as follows:

(a) Includes sublease income of $8.8 million, $8.3 million, and $9.1 million for the years ended December 31, 2025, 2024, and 2023, respectively.

(b)Excludes expenses relating to leases with a lease term of one month or less.

In 2023, the Company sold two properties in Michigan and Arizona for a total of $60.5 million, which resulted in a net gain

of $39.3 million. Contemporaneously with the closing of the sales, the Company entered into leases pursuant to which we

leased back the properties for cumulative annual rent of $39.9 million, subject to annual escalations. The leases are accounted

for as operating leases.

Supplemental information related to leases are as follows:


	Year ended December 31,
In thousands, except lease term and discount rate	2025	2024	2023
Cash paid for amounts included in the measurement of operating lease liabilities	$62,184	$71,985	$76,338
Right-of-use assets obtained in exchange for operating lease obligations	8,497	6,071	31,501
Gain on sale and leaseback transactions, net	—	(105)	(40,221)

Weighted-average remaining lease term (in years)	5.5	6.0	6.4
Weighted-average discount rate	13.3%	13.2%	13.0%

Future minimum lease payments under non-cancellable leases are as follows:


In thousands	Year ended December 31,
2026	$50,609
2027	41,936
2028	37,963
2029	36,286
2030	32,305
Thereafter	43,125
Total future minimum lease payments	242,224
Less: Imputed interest	62,368
Total	$179,856

As of December 31, 2025, we have entered into leases that have not yet commenced with total future lease payments of

$0.1 million, which are not yet recorded on the Consolidated balance sheet.