| LEASE COMMITMENTS |
NOTE 5 – LEASE COMMITMENTS Variable lease payments were $3.7 million and $3.5 million for the three months ended June 30, 2026 and 2025, respectively. Variable lease payments were $7.4 million and $7.2 million for the six months ended June 30, 2026 and 2025, respectively. Variable expenses include common area maintenance, utilities, and other items as periodically billed by property management or the related lessor, and are included in operating lease costs. The components of lease expense were as follows (in thousands): | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Operating lease cost | | $ | 20,461 | | $ | 19,515 | | $ | 40,619 | | $ | 38,841 | Short-term lease cost | | | 1,365 | | | 1,152 | | | 2,654 | | | 2,245 | | | | | | | | | | | | | | Finance lease cost: | | | | | | | | | | | | | Amortization of right-of-use assets | | | 3,375 | | | 3,855 | | | 6,989 | | | 7,946 | Interest on lease liabilities | | | 1,426 | | | 1,297 | | | 2,890 | | | 2,642 | Total finance lease cost | | | 4,801 | | | 5,152 | | | 9,879 | | | 10,588 | Total lease costs | | $ | 26,627 | | $ | 25,819 | | $ | 53,152 | | $ | 51,674 |
Supplemental cash flow information related to leases was as follows (in thousands): | | | | | | | | | Six Months Ended June 30, | | | 2026 | | 2025 | Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | Operating cash flows for operating leases | | $ | 42,367 | | $ | 42,171 | Operating cash flows for finance leases | | $ | 2,890 | | $ | 2,642 | Finance cash flows for finance leases | | $ | 6,401 | | $ | 7,473 | | | | | | | | Right-of-use assets obtained in exchange for lease obligations: | | | | | | | Operating leases | | $ | 14,000 | | $ | 6,159 | Finance leases | | $ | 7,313 | | $ | — |
Supplemental balance sheet information related to leases was as follows (in thousands): | | | | | | | | | June 30, 2026 | | December 31, 2025 | Operating Leases: | | | | | | | Operating right-of-use assets | | $ | 216,206 | | $ | 203,258 | | | | | | | | Current portion of operating lease obligations | | $ | 58,833 | | $ | 56,893 | Operating lease obligations | | | 182,105 | | | 171,880 | Total operating lease liabilities | | $ | 240,938 | | $ | 228,773 | | | | | | | | Finance Leases: | | | | | | | Finance right-of-use assets | | $ | 164,621 | | $ | 164,826 | Accumulated amortization | | | (80,382) | | | (79,796) | Finance right-of-use assets, net | | $ | 84,239 | | $ | 85,030 | | | | | | | | Current portion of finance lease obligations | | $ | 20,839 | | $ | 21,824 | Finance lease obligations | | | 75,578 | | | 74,943 | Total finance lease liabilities | | $ | 96,417 | | $ | 96,767 | | | | | | | | Weighted Average Remaining Lease Term (in years): | | | | | | | Operating leases | | | 5.73 | | | 5.82 | Finance leases | | | 7.42 | | | 7.21 | | | | | | | | Weighted Average Discount Rate: | | | | | | | Operating leases | | | 7.27% | | | 7.68% | Finance leases | | | 5.87% | | | 5.94% |
Future commitments as of June 30, 2026 for lease liabilities related to premises, equipment and other recurring commitments are as follows (in thousands): | | | | | | | | | | | | Maturities of Lease Liabilities | Year Ending December 31, | | Operating Leases | | Finance Leases | | Total | 2026 | | $ | 39,836 | | $ | 16,817 | | $ | 56,653 | 2027 | | | 62,936 | | | 18,706 | | | 81,642 | 2028 | | | 49,577 | | | 22,374 | | | 71,951 | 2029 | | | 41,142 | | | 12,446 | | | 53,588 | 2030 | | | 29,955 | | | 14,968 | | | 44,923 | Thereafter | | | 72,152 | | | 35,717 | | | 107,869 | Total lease payments | | $ | 295,598 | | $ | 121,028 | | $ | 416,626 | Less: Amount representing interest | | | (54,660) | | | (24,611) | | | (79,271) | Total | | | 240,938 | | | 96,417 | | | 337,355 | Less: Current lease obligation payments | | | (58,833) | | | (20,839) | | | (79,672) | Total long-term lease obligations | | $ | 182,105 | | $ | 75,578 | | $ | 257,683 |
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