LEASES

12 Months Ended

Dec. 31, 2024

LEASES

LEASES

10. LEASES

The Company has operating leases for office space, manufacturing facilities and equipment, computer equipment and automobiles. Many leases include one or more options to renew, some of which include options to extend the leases for a long-term period, and some leases include options to terminate the leases within 30 days. In certain of the Company's lease agreements, the rental payments are adjusted periodically to reflect actual charges incurred for capital area maintenance, utilities, inflation and/or changes in other indexes.

The Company’s finance lease obligations relate to a manufacturing facility. As of December 31, 2024, finance lease assets of $7,577 are included in property, plant, and equipment, net, finance lease obligations of $448 are included in accrued liabilities, and $8,160 are included in long-term debt on the consolidated balance sheet.

For the years ended December 31, 2024 and 2023, the components of operating lease expense were as follows (in thousands):

	December 31,			December 31,
	2024			2023
Fixed operating lease expense	$	6,610	$	6,748
Variable operating lease expense		735		646
Short-term lease expense		826		1,375
	$	8,171	$	8,769

Supplemental cash flow information related to the Company’s operating and finance leases for the years ended December 31, 2024 and 2023 are as follows (in thousands):

	December 31,
	2024		2023
Cash paid for operating leases	$	6,418	$	5,765
Cash paid for interest on finance lease obligations	$	405	$	376
Assets acquired under operating leases	$	6,011	$	6,517
Operating lease assets obtained in acquisitions	$	378	$	224

The following table presents weighted average remaining lease term and discount rates related to the Company’s operating leases as of December 31, 2024 and 2023:

	December 31,
	2024			2023
Weighted average remaining lease term (in years)		5.73			6.00
Weighted average discount rate		4.71	%		4.25	%

The following table presents the maturity of the Company’s operating and finance lease liabilities as of December 31, 2024 (in thousands):

	Operating Leases		Finance Leases
2025		6,111		831
2026		5,460		848
2027		4,721		867
2028		3,569		886
2029		2,504		906
Thereafter		5,527		6,978
Total undiscounted cash flows	$	27,892	$	11,316
Less: present value discount		(3,387)		(2,708)
Total lease liabilities	$	24,505	$	8,608

The Company leases certain facilities from companies for which a member of management is a part owner. In connection with such leases, the Company made payments to the lessor of $884 and $1,631 during the years ended December 31, 2024 and 2023, respectively. Future minimum lease payments under these leases as of December 31, 2024 are $5,218.