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LEASES
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
LEASES LEASES
The Company has operating leases for corporate offices, distribution facilities, manufacturing plants, and certain vehicles.
ROU assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the commencement date based on the net present value of fixed lease payments over the lease term. The Company’s lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. ROU assets also include any advance lease payments. As most of the Company’s operating leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.
The components of lease costs for the year ended December 31, 2025, 2024 and 2023 were as follows (in thousands):
Year Ended December 31,
202520242023
Operating lease costs (1):
Fixed lease expense$17,220 $17,063 $16,911 
Variable lease expense6,882 6,202 5,432 
Total$24,102 $23,265 $22,343 
(1)Expenses are recorded within distribution expenses and selling, general and administrative expenses.
Supplemental cash flow information for the year ended December 31, 2025, 2024 and 2023 were as follows (in thousands):
Year Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$19,533 $19,073 $18,800 
Total$19,533 $19,073 $18,800 
Year Ended December 31,
202520242023
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$787 $2,177 $5,718 
Total$787 $2,177 $5,718 
Included in machinery, furniture and equipment as of December 31, 2025 and 2024 is $0.3 million, related to assets recorded under finance leases. Included in accumulated depreciation and amortization at December 31, 2025 and December 31, 2024 were less than $0.1 million, related to assets recorded under finance leases.
The aggregate future lease payments for operating leases as of December 31, 2025 were as follows (in thousands):
Operating
2026$19,321 
202715,098 
202813,080 
20296,840 
20305,010 
Thereafter9,242 
Total lease payments68,591 
Less: Interest(10,006)
Present value of lease payments$58,585 
Average lease terms and discount rates were as follows:
December 31, 2025
December 31, 2024
Weighted-average remaining lease term (years)
Operating leases4.65.2
Weighted-average discount rate
Operating leases6.6%6.6%
On January 23, 2025, the Company entered into a lease agreement for a new distribution center in Hagerstown, Maryland (“Hagerstown Facility”). The term of the lease is 180 months following the rent commencement date, which is expected to occur in the second quarter of 2026. Base rent for the first year of the lease is $7.3 million, escalating by 3% annually. A portion of the base rent will be abated for the first 36 months at the annual prevailing rate for a total rent abatement of $7.2 million. The lease agreement also includes a total tenant improvement allowance of $5.1 million.