Leases

12 Months Ended

Dec. 31, 2024

Leases

Leases

Note 9. Leases

We have operating leases for manufacturing, production, administrative, distribution and warehousing facilities, vehicles and machinery and equipment. Some of our lease agreements have renewal options, tenant improvement allowances, rent holidays and rent escalation clauses. The remaining terms on our leases range from 1 year to 15 years, some of which may include options to extend the leases and some of which may include options to terminate the leases within 1 year.

The following table summarizes the amount of right-of-use lease assets and lease liabilities included in each respective line item on the Company’s Consolidated Balance Sheets:

(Thousands)	Balance Sheet Location	December 31, 2024		December 31, 2023
Right-of-use operating lease assets	Operating lease right-of-use assets	$	63,380	$	67,601
Operating lease liabilities - current	Accrued expenses and other current liabilities		4,420		4,809
Operating lease liabilities - noncurrent	Operating lease liabilities		60,692		63,554

During the years ended December 31, 2024 and 2023, the Company obtained approximately $1.0 million and $60.2 million, respectively, of right-of-use operating lease assets in exchange for lease obligations.

On February 12, 2024, following the completion of its 530,000 square foot distribution center in Conway, Arkansas, the Company entered into a lease termination agreement for the Gregory Distribution Center lease. The Gregory Distribution Center lease terminated, by mutual agreement, on June 30, 2024. No costs were incurred as a result of the

lease termination. This lease termination event does not significantly alter the Company’s operational capabilities or its financial position.

Depending on the nature of the lease, lease costs are classified within costs of sales or selling, general and administrative expense on the Company’s Consolidated Statements of Operations. The components of lease costs for the year ended December 31, 2024 and 2023 are as follows:

	Year Ended December 31,
(Thousands)	2024		2023
Operating lease cost	$	10,797	$	4,857
Short-term lease cost		1,075		1,020
Total	$	11,872	$	5,877

The following table presents information about the Company’s weighted average discount rate and remaining lease term as of December 31, 2024 and 2023:

	December 31, 2024		December 31, 2023
Weighted-average discount rate		7.7%		7.8%
Weighted-average remaining lease term		12.1 years		12.9 years

Supplemental cash flow information about the Company’s leases as of December 31, 2024 and 2023, respectively, is as follows:

	Year Ended December 31,
(Thousands)	2024		2023
Cash paid related to operating lease liabilities	$	9,670	$	4,317

Finance lease assets are recorded in property, plant and equipment, net with the corresponding lease liabilities included in accrued expenses and other current liabilities and long-term debt, net on the Consolidated Balance Sheets. There were no material finance leases as of December 31, 2024.

Future minimum lease payments under non-cancellable operating leases as of December 31, 2024 are as follows:

(Thousands)
2025	$	8,851
2026		8,596
2027		8,522
2028		7,997
2029		8,069
Thereafter		61,674
Total future minimum lease payments		103,709
Less: imputed interest		(38,597)
Present value of minimum lease payments	$	65,112