Leases Leases

12 Months Ended

Dec. 31, 2024

The Company's leases are primarily leased properties across different worldwide locations where the Company conducts its business. All of these leases are classified as operating leases. Certain leases may contain options to extend or terminate the lease at the Company's sole discretion. As of December 31, 2024, there were no options to terminate and twenty options to extend that were accounted for in the determination of the lease term for the Company's outstanding leases. Certain leases contain leasehold improvement incentives, retirement obligations, escalating clauses, rent holidays, and variable payments tied to a consumer price index. There were no restrictions or covenants for the outstanding leases as of December 31, 2024. The Company did not have any leases that had not yet commenced but that created significant rights and/or obligations as of December 31, 2024.

The total operating lease expense was $14,131,000 in 2024, $11,598,000 in 2023, and $8,939,000 in 2022. The total operating lease cash payments were $13,683,000 in 2024, $10,148,000 in 2023, and $8,548,000 in 2022. The total lease expense for leases with a term of twelve months or less for which the Company elected not to recognize a lease asset or lease liability was $407,000 in 2024, $427,000 in 2023, and $144,000 in 2022.

Future operating lease cash payments are as follows (in thousands):


Year Ended December 31,	Amount
2025	$	12,534
2026	10,543
2027	9,496
2028	8,820
2029	8,242
Thereafter	43,657
	$	93,292

The discounted present value of the future lease cash payments resulted in a lease liability of $70,217,000 and $78,601,000 as of December 31, 2024 and 2023, respectively.

The Company leases a building in Singapore that serves as a distribution center for customers in Asia. The lease contains two components: an 88,000 square-foot premises that had a commencement date in June of 2023 and a second 27,000 square-foot premises that does not commence until the fourth quarter of 2025. Accordingly, the second component of the lease has not yet been recorded on the Consolidated Balance Sheets, nor has it created any significant rights and obligations as of December 31, 2024. This second lease component has an original term of eight years and the Company has the right and option to extend this term by an additional five years, commencing upon the expiration of the original term. Future payment obligations associated with this lease component total $13,145,000, $160,000 of which is payable in 2025 and which reflects an estimated extension period of five years. Future payment obligations related to this lease component are not included in the future operating lease cash payments table above.

The Company has entered into a lease for a 6,500 square-foot building in Aachen, Germany for a term of ten years. The commencement date for this lease is expected to be in the second quarter of 2025, and therefore it has not yet been recorded on the Consolidated Balance Sheets, nor has it created any significant rights and obligations as of December 31, 2024. The Company has the right and option to extend the term of this lease for an additional period of five years, commencing upon the expiration of the original term. Future payment obligations associated with this lease total $8,763,000, $483,000 of which is payable in 2025. Future payment obligations related to this lease are not included in the future operating lease cash payments table above.

The weighted-average discount rate was 5.9% and 5.7% for the leases outstanding as of December 31, 2024 and December 31, 2023, respectively. The weighted-average remaining lease term was 9.9 years and 10.5 years for the leases outstanding as of December 31, 2024 and 2023, respectively.