LEASES

12 Months Ended

Dec. 31, 2025

The Company has operating and finance leases for certain facilities, trailers, forklifts and other assets. Leases with an initial term of 12 months or less are not recorded on the balance sheet and expense related to these short-term leases was immaterial for the years ended December 31, 2025, 2024 and 2023. Variable lease payments, principally related to trucks, forklifts, and index-related facility rent escalators, was immaterial for the years ended December 31, 2025, 2024 and 2023. The leases have remaining lease terms of 1 to 14 years. Certain leases include options to renew for an additional term. Where there is reasonable certainty to utilize a renewal option, we include the renewal option in the lease term used to calculate operating lease right-of-use assets and lease liabilities.

The components of lease expense were as follows:


	Year Ended December 31,
($ in thousands)	2025		2024		2023
Operating lease cost	$	69,602	$	64,391	$	56,370
Finance lease cost:
Amortization of right-of-use assets	454		—		—
Interest on lease liabilities	244		—		—
Total finance lease cost	698		—		—
Total lease cost	$	70,300	$	64,391	$	56,370

Supplemental balance sheet information was as follows:


	Year Ended December 31,
($ in thousands)	2025		2024
Finance lease assets:
Property, plant and equipment, net	$	2,000	$	—
Finance lease liabilities:
Other current liabilities	$	424	$	—
Other long-term liabilities	1,626		—
Total finance lease liabilities	$	2,050	$	—

Supplemental cash flow information was as follows:


	Year Ended December 31,
($ in thousands)	2025		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	68,799	$	63,958	$	55,933
Operating cash flows used for finance leases	$	214	$	—	$	—
Finance cash flows used for finance leases	$	516	$	—	$	—
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	59,292	$	77,558	$	65,505
Finance leases	$	2,672	$	—	$	—

Other information related to leases was as follows:


	As of December 31,
	2025		2024
Weighted average remaining lease term, operating leases (in years)	5.2		5.2
Weighted average remaining lease term, finance leases (in years)	5.0		—
Weighted average discount rate, operating leases	5.9	%	5.8	%
Weighted average discount rate, finance leases	6.2	%	—	%

Future minimum lease payments under non-cancellable leases as of December 31, 2025 were as follows:


($ in thousands)	Operating Leases		Finance Leases
2026	$	65,153	$	536
2027	50,440		472
2028	37,924		449
2029	26,992		433
2030	17,396		292
Thereafter	41,061		196
Total lease payments	$	238,966	$	2,378
Less imputed interest	(35,121)		(328)
Total	$	203,845	$	2,050

The Company has an additional operating lease that had not yet commenced as of December 31, 2025, and therefore, approximately $0.4 million in operating lease right-of-use assets and corresponding operating lease liabilities were not included in our consolidated balance sheet as of December 31, 2025. The lease is expected to commence in the first quarter of fiscal 2026 with a lease term of 3 years.