LEASES

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

LEASES

LEASES

We determine if an arrangement is a lease at inception. Operating leases are included in “Operating lease right-of-use (‘ROU’) assets”, “current portion of operating lease obligations” and “operating lease obligations” on our consolidated balance sheets. Finance leases are included in “property, plant and equipment, net”, “current portion of long-term debt and finance lease obligations” and “long-term debt and finance lease obligations” on our consolidated balance sheets.

Lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Variable lease payments and short-term lease payments (leases with initial terms less than twelve months) are expensed as incurred.

We have lease agreements with lease and non-lease components for certain equipment, office, and vehicle leases. We have elected the practical expedient to not separate lease and non-lease components and account for both as a single lease component.

We have operating and finance leases primarily for equipment, real estate, and vehicles. Some of our leases include options to extend the leases for up to 10 years, and some may include options to terminate the leases within 14 months.

The components of lease expense are as follows (in thousands):

	December 31,
	2024		2023
Operating lease costs	$	24,512	$	24,605
Variable lease costs	5,345		5,198
Finance lease costs:
Amortization of right-of-use assets	1,099		1,182
Interest on lease liabilities	435		462
Total lease cost	$	31,391	$	31,447

Other information related to leases is as follows (in thousands):

	December 31,
	2024		2023
Supplemental cash flow information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	19,486	$	18,823
Operating cash flows from finance leases	444		446
Financing cash flows from finance leases	907		1,039
Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	7,519	$	3,402
Finance leases	$	1,022	$	1,371

Amounts recognized in the consolidated balance sheet are as follows (in thousands):

	December 31,
	2024			2023
Operating Leases:
Operating lease right-of-use assets	$	40,407		$	40,498
Current portion of operating lease obligations	14,790			14,232
Operating lease obligations (non-current)	28,631			29,962
Finance Leases:
Property, plant and equipment, net	$	4,507		$	5,258
Current portion of long-term debt and finance lease obligations	819			945
Long-term debt and finance lease obligations	4,324			4,811
Weighted average remaining lease term
Operating leases	5 years			5 years
Finance leases	7 years			8 years
Weighted average discount rate
Operating leases	9.0		%	8.1		%
Finance lease	8.0		%	8.0		%

As of December 31, 2024, we have no material additional operating and finance leases that have not yet commenced.

As of December 31, 2024, future minimum lease payments under non-cancellable (excluding short-term leases) are as follows (in thousands):

Twelve Months Ended December 31,	Operating Leases		Finance Leases
2025	$	17,409	$	1,161
2026	11,740		1,041
2027	8,644		838
2028	4,886		670
2029	2,655		612
Thereafter	7,282		2,255
Total future minimum lease payments	$	52,616	$	6,577
Less: Interest	9,195		1,434
Present value of lease liabilities	$	43,421	$	5,143

Total rent expense resulting from operating leases, including short-term leases, for the years ended December 31, 2024 and 2023 was $36.9 million and $36.4 million, respectively.

LEASES

LEASES

We determine if an arrangement is a lease at inception. Operating leases are included in “Operating lease right-of-use (‘ROU’) assets”, “current portion of operating lease obligations” and “operating lease obligations” on our consolidated balance sheets. Finance leases are included in “property, plant and equipment, net”, “current portion of long-term debt and finance lease obligations” and “long-term debt and finance lease obligations” on our consolidated balance sheets.

Lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Variable lease payments and short-term lease payments (leases with initial terms less than twelve months) are expensed as incurred.

We have lease agreements with lease and non-lease components for certain equipment, office, and vehicle leases. We have elected the practical expedient to not separate lease and non-lease components and account for both as a single lease component.

We have operating and finance leases primarily for equipment, real estate, and vehicles. Some of our leases include options to extend the leases for up to 10 years, and some may include options to terminate the leases within 14 months.

The components of lease expense are as follows (in thousands):

	December 31,
	2024		2023
Operating lease costs	$	24,512	$	24,605
Variable lease costs	5,345		5,198
Finance lease costs:
Amortization of right-of-use assets	1,099		1,182
Interest on lease liabilities	435		462
Total lease cost	$	31,391	$	31,447

Other information related to leases is as follows (in thousands):

	December 31,
	2024		2023
Supplemental cash flow information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	19,486	$	18,823
Operating cash flows from finance leases	444		446
Financing cash flows from finance leases	907		1,039
Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	7,519	$	3,402
Finance leases	$	1,022	$	1,371

Amounts recognized in the consolidated balance sheet are as follows (in thousands):

	December 31,
	2024			2023
Operating Leases:
Operating lease right-of-use assets	$	40,407		$	40,498
Current portion of operating lease obligations	14,790			14,232
Operating lease obligations (non-current)	28,631			29,962
Finance Leases:
Property, plant and equipment, net	$	4,507		$	5,258
Current portion of long-term debt and finance lease obligations	819			945
Long-term debt and finance lease obligations	4,324			4,811
Weighted average remaining lease term
Operating leases	5 years			5 years
Finance leases	7 years			8 years
Weighted average discount rate
Operating leases	9.0		%	8.1		%
Finance lease	8.0		%	8.0		%

As of December 31, 2024, we have no material additional operating and finance leases that have not yet commenced.

As of December 31, 2024, future minimum lease payments under non-cancellable (excluding short-term leases) are as follows (in thousands):

Twelve Months Ended December 31,	Operating Leases		Finance Leases
2025	$	17,409	$	1,161
2026	11,740		1,041
2027	8,644		838
2028	4,886		670
2029	2,655		612
Thereafter	7,282		2,255
Total future minimum lease payments	$	52,616	$	6,577
Less: Interest	9,195		1,434
Present value of lease liabilities	$	43,421	$	5,143

Total rent expense resulting from operating leases, including short-term leases, for the years ended December 31, 2024 and 2023 was $36.9 million and $36.4 million, respectively.