Leases

12 Months Ended

Dec. 31, 2024

12. Leases

Most leases held by the Company expire between 2025 and 2036. In the U.K., where longer lease terms are more common, the Company has a land lease that extends through 2078. Certain leases include terms such as one or more options to renew, with renewal terms that can extend the lease term from one to 10 years, and options to terminate the leases within one year. The exercise of lease renewal or termination option is at the Company’s sole discretion; therefore, the majority of renewals to extend the lease terms are not included in the Company’s right-of-use assets and operating lease liabilities as they are not reasonably certain of being

exercised. The Company regularly evaluates the renewal options and includes the renewal periods in the lease term when they are reasonably certain of being exercised. The depreciable life of right-of-use assets and leasehold improvements is limited to the expected lease terms.

The following table summarizes the components of lease costs included in the statements of operations for the periods indicated (in thousands):


	Year Ended December 31,
	2024		2023		2022
Operating lease cost	$	12,109	$	10,475	$	10,387
Finance lease cost
Amortization of right-of-use assets		602		602		602
Interest on lease liabilities		236		274		308
Variable lease cost		1,192		1,007		1,145
Total lease cost	$	14,139	$	12,358	$	12,442

The following table provides the details of balance sheet information related to leases as of the dates indicated (in thousands, except lease term and discount rate):


	December 31,
	2024			2023
Operating leases:
Operating lease right-of-use assets	$	42,908		$	38,302

Current portion of operating lease liabilities	$	9,879		$	8,189
Operating lease liabilities		40,548			37,345
Total operating lease liabilities	$	50,427		$	45,534

Finance leases:
Property, plant and equipment, gross	$	9,582		$	9,582
Accumulated depreciation		(6,874	)		(6,272	)
Finance lease assets included in property, plant and equipment, net	$	2,708		$	3,310

Accrued expenses and other current liabilities	$	759		$	718
Other liabilities		3,175			3,934
Total finance lease liabilities	$	3,934		$	4,652

Weighted-average remaining lease term (in years):
Operating leases		7.4			7.6
Finance leases		4.5			5.5
Weighted-average discount rate:
Operating leases		4.82	%		4.84	%
Finance leases		5.54	%		5.54	%

The following table provides the details of cash flow information related to leases for the periods indicated (in thousands):


	Year Ended December 31,
	2024		2023		2022
Cash paid for amounts included in lease liabilities:
Operating cash flows from finance leases	$	236	$	274	$	308
Operating cash flows from operating leases	$	11,169	$	7,826	$	7,876
Financing cash flows from finance leases	$	718	$	657	$	599
Supplemental non-cash information:
Right-of-use assets obtained in exchange for new operating lease liabilities(1)	$	14,237	$	4,046	$	4,757
Right-of-use assets obtained in exchange for new finance lease liabilities	$	-	$	-	$	-

(1)The amount for the twelve months ended December 31, 2024 includes $8.1 million of right-of-use assets acquired as part of the Motion Solutions acquisition.

Future minimum lease payments under operating and finance leases expiring subsequent to December 31, 2024, including operating leases associated with facilities that have been vacated as a result of the Company’s restructuring actions, are summarized as follows (in thousands):


Year Ending December 31,	Operating Leases			Finance Leases
2025	$	11,581		$	954
2026		10,445			979
2027		8,880			1,003
2028		6,084			1,003
2029		5,297			502
Thereafter		19,037			—
Total minimum lease payments		61,324			4,441
Less: interest		(10,897	)		(507	)
Present value of lease liabilities	$	50,427		$	3,934