Leases

3 Months Ended

Mar. 31, 2026

Note 6 – Leases

The Company determines if a contract is or contains a lease at inception. The Company leases certain facilities, vehicles and other equipment. The Company’s leases primarily consist of operating leases which expire at various dates through 2036. Variable lease payments are generally expensed as incurred and primarily include certain index-based changes in rent and certain non-lease components, such as maintenance and other services provided by the lessor.

The components of lease expense were as follows:


	Three Months Ended March 31,
(in thousands)	2026		2025
Finance lease costs:
Interest on lease liabilities		—		2
Operating lease costs		5,022		6,057
Short-term lease costs		212		135
Variable lease costs		610		493
Total lease costs	$	5,844	$	6,687

A summary of cash flow information related to leases follows:


	Three Months Ended March 31,
(in thousands)	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	4,954	$	5,781
Operating cash flows used for finance leases		—		2
Financing cash flows used for finance leases		—		47
Right-of-use assets obtained in exchange for new operating lease liabilities		6,061		255

A summary of other information about the Company’s leases follows:


	March 31,			December 31,
(dollars in thousands)	2026			2025
Operating lease right-of-use assets	$	104,725		$	102,664
Operating lease liabilities, current (included in accrued liabilities)	$	14,938		$	14,042
Operating lease liabilities, noncurrent	$	99,546		$	98,689
Weighted average remaining lease term – operating leases	8.0 yrs			8.4 yrs
Weighted average discount rate – operating leases		4.7	%		4.6	%

A summary of the Company's future annual minimum lease payments as of March 31, 2026 follows (in thousands):


Year ending December 31,	Operating Leases
Remaining 9 months of 2026	$	14,758
2027		17,847
2028		17,034
2029		15,941
2030 and thereafter		71,964
Total minimum lease payments		137,544
Less: imputed interest		(23,060	)
Total present value of lease liabilities	$	114,484