Leases

12 Months Ended

Dec. 31, 2025

We are generally the lessee in our lease transactions. Lessees are required to recognize a lease liability and a right of use ("ROU") asset for leases with terms greater than 12 months, in accordance with the practical expedient that is available for ongoing accounting.

ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized on the commencement date based on the present value of lease payments over the lease term, using the rate implicit in the lease. If that rate is not readily determinable, the rate is based on the Company’s incremental borrowing rate. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease. Our ROU assets include the values associated with the additional periods when it is reasonably certain that we will exercise the option. We review the carrying value of ROU assets for impairment whenever events and circumstances indicate that the carrying value of an asset group may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition.

We have entered into operating leases for offices, manufacturing facilities, warehouses, vehicles, and certain equipment. Our leases have remaining lease terms of one year to 14 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within one year.

The components of lease expense were as follows:


	For the years ended
(in thousands)	December 31, 2025		December 31, 2024		December 31, 2023



Operating lease:
Fixed lease cost	11,576		10,776		9,591
Variable lease cost	1,906		516		108
Short-term lease cost	776		2,170		2,060
Total lease expense	$	14,258	$	13,462	$	11,759

The Company was not party to any leases classified as finance leases for the periods ending December 31, 2025, 2024, or 2023.

Supplemental cash flow information related to leases was as follows:


	For the years ended
(in thousands)	December 31, 2025		December 31, 2024		December 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	11,809	$	11,204	$	10,105
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	9,746	$	17,698	$	9,114

The initial recognition of each ROU asset and lease liability at lease commencement is a noncash transaction that is excluded from amounts reported in the Consolidated Statements of Cash Flows.

Supplemental balance sheet information related to leases was as follows:


(in thousands)	December 31, 2025		December 31, 2024
Operating leases
Right of use assets	$	11,387	$	61,671
Lease liabilities included in
Accrued liabilities	$	4,274	$	7,607
Other noncurrent liabilities	7,423		61,062
Total operating lease liabilities	$	11,697	$	68,669

Additional information for leases existing at December 31, 2025 and 2024 was as follows:


	December 31, 2025		December 31, 2024
Weighted average remaining lease term
Operating leases	13 years		13 years

Weighted average discount rate
Operating leases	5.8	%	5.8	%

Maturities of lease liabilities as of December 31, 2025 were as follows:


(in thousands)	Operating leases
Year ending December 31,
2026	$	4,809
2027	3,600
2028	1,692
2029	860
2030	408
Thereafter	2,548
Total lease payments	13,917
Less imputed interest	(2,220)
Total	$	11,697

The above table excludes leases held by the disposal group for which the Company is the obligor. Payments for these leases are expected to be $6.2 million in 2026, $6.3 million in 2027, $5.3 million in 2028, $5.4 million in 2029, $5.5 million in 2030, and $57.1 million thereafter. Of these payments, $27.7 million is imputed interest at December 31, 2025.

Leases