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LEASES | 9 Months Ended
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Sep. 30, 2025
Leases [Abstract] |
LEASES | LEASES The Company has both real estate leases and equipment leases. The main types of equipment leases include forklifts, trailers, printers and copiers, railcars, and trucks. Leases are categorized as both operating leases and finance leases. The Company elected the practical expedient to combine lease and non-lease components and recognizes the combined amount on the condensed consolidated balance sheet. Management determined that since the Company has a centralized treasury function, the parent company would either fund or guarantee a subsidiary's loan for borrowing over a similar term. As such, the Company's management determined it is appropriate to utilize a corporate based borrowing rate for all locations. The Company developed four tranches of leases based on lease terms and these tranches reflect the composition of the current lease portfolio. The Company's borrowing history shows that interest rates of a term loan or a line of credit depend on the duration of the loan rather than the nature of the assets purchased by those funds. Based on this understanding, the Company elected to use a portfolio approach to discount rates, applying corporate rates to the tranches of leases based on lease terms. Based on the Company's risk rating, the Company applied the following discount rates for new leases entered into during the third quarter of 2025: (1) 1-2 years, 5.61% (2) 3-4 years, 6.20% (3) 5-9 years, 6.54% and (4) 10+ years, 7.26%. Right of use assets and lease liabilities at September 30, 2025 and December 31, 2024 are summarized as follows:
Right of use assets |  | September 30, 2025 |  | December 31, 2024
Operating leases |  | $ | 15,916 |  |  | $ | 15,320 |
Finance leases |  | 1,573 |  |  | 1,730 |
Total |  | $ | 17,489 |  |  | $ | 17,050 |
Lease liabilities - current |  | September 30, 2025 |  | December 31, 2024
Operating leases |  | $ | 3,943 |  |  | $ | 3,134 |
Finance leases |  | 202 |  |  | 194 |
Total |  | $ | 4,145 |  |  | $ | 3,328 |
Lease liabilities - non-current |  | September 30, 2025 |  | December 31, 2024
Operating leases |  | $ | 12,257 |  |  | $ | 12,967 |
Finance leases |  | 1,596 |  |  | 1,749 |
Total |  | $ | 13,853 |  |  | $ | 14,716 |
For the three and nine months ended September 30, 2025 and 2024, the Company's total lease costs were as follows, which included amounts recognized in earnings, amounts capitalized on the balance sheets, and the cash flows arising from lease transactions:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Lease Cost |  |  |  |  |  |  |  |
Operating lease cost |  | $ | 1,407 |  |  | $ | 1,365 |  |  | $ | 4,100 |  |  | $ | 4,057 |
Finance lease cost |  |  |  |  |  |  |  |
Amortization of ROU asset |  | 53 |  |  | 59 |  |  | 157 |  |  | 179 |
Interest on lease liabilities |  | 23 |  |  | 25 |  |  | 71 |  |  | 79 |
Total finance lease |  | 76 |  |  | 84 |  |  | 228 |  |  | 258 |
Total lease cost |  | $ | 1,483 |  |  | $ | 1,449 |  |  | $ | 4,328 |  |  | $ | 4,315 |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 1,400 |  |  | $ | 1,362 |  |  | $ | 4,142 |  |  | $ | 4,056 |
Operating cash flows from finance leases |  | 23 |  |  | 25 |  |  | 71 |  |  | 79 |
Financing cash flows from finance leases |  | 48 |  |  | 58 |  |  | 145 |  |  | 169 |
|  | $ | 1,471 |  |  | $ | 1,445 |  |  | $ | 4,358 |  |  | $ | 4,304 |
Right-of-use assets obtained in exchange for new operating lease liabilities, net of right-of-use assets disposed |  | $ | 1,397 |  |  | $ | 61 |  |  | $ | 3,254 |  |  | $ | 1,225 |
Weighted-average remaining lease term - operating leases |  | 5.71 years |  | 9.18 years |  | 5.71 years |  | 9.18 years
Weighted-average remaining lease term - finance leases |  | 7.61 years |  | 8.62 years |  | 7.61 years |  | 8.62 years
Weighted-average discount rate - operating leases |  | 6.6 | % |  | 7.6 | % |  | 6.6 | % |  | 7.6 | %
Weighted-average discount rate - finance leases |  | 5.1 | % |  | 5.1 | % |  | 5.1 | % |  | 5.1 | %
Rent expense charged to operations under operating lease agreements for the three and nine months ended September 30, 2025 aggregated to approximately $1,407 and $4,100, respectively, and $1,365 and $4,057 for the three and nine months ended September 30, 2024, respectively. Aggregate future minimum rental payments required under all non-cancelable operating and finance leases at September 30, 2025 are as follows:
Year |
October 1, 2025 to December 31, 2025 | $ | 1,444 |
2026 | 5,211 |
2027 | 3,767 |
2028 | 3,001 |
2029 | 2,533 |
2030 | 2,078 |
Thereafter | 4,737 |
Total minimum lease payments | $ | 22,771 |
LEASES | LEASES The Company has both real estate leases and equipment leases. The main types of equipment leases include forklifts, trailers, printers and copiers, railcars, and trucks. Leases are categorized as both operating leases and finance leases. The Company elected the practical expedient to combine lease and non-lease components and recognizes the combined amount on the condensed consolidated balance sheet. Management determined that since the Company has a centralized treasury function, the parent company would either fund or guarantee a subsidiary's loan for borrowing over a similar term. As such, the Company's management determined it is appropriate to utilize a corporate based borrowing rate for all locations. The Company developed four tranches of leases based on lease terms and these tranches reflect the composition of the current lease portfolio. The Company's borrowing history shows that interest rates of a term loan or a line of credit depend on the duration of the loan rather than the nature of the assets purchased by those funds. Based on this understanding, the Company elected to use a portfolio approach to discount rates, applying corporate rates to the tranches of leases based on lease terms. Based on the Company's risk rating, the Company applied the following discount rates for new leases entered into during the third quarter of 2025: (1) 1-2 years, 5.61% (2) 3-4 years, 6.20% (3) 5-9 years, 6.54% and (4) 10+ years, 7.26%. Right of use assets and lease liabilities at September 30, 2025 and December 31, 2024 are summarized as follows:
Right of use assets |  | September 30, 2025 |  | December 31, 2024
Operating leases |  | $ | 15,916 |  |  | $ | 15,320 |
Finance leases |  | 1,573 |  |  | 1,730 |
Total |  | $ | 17,489 |  |  | $ | 17,050 |
Lease liabilities - current |  | September 30, 2025 |  | December 31, 2024
Operating leases |  | $ | 3,943 |  |  | $ | 3,134 |
Finance leases |  | 202 |  |  | 194 |
Total |  | $ | 4,145 |  |  | $ | 3,328 |
Lease liabilities - non-current |  | September 30, 2025 |  | December 31, 2024
Operating leases |  | $ | 12,257 |  |  | $ | 12,967 |
Finance leases |  | 1,596 |  |  | 1,749 |
Total |  | $ | 13,853 |  |  | $ | 14,716 |
For the three and nine months ended September 30, 2025 and 2024, the Company's total lease costs were as follows, which included amounts recognized in earnings, amounts capitalized on the balance sheets, and the cash flows arising from lease transactions:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Lease Cost |  |  |  |  |  |  |  |
Operating lease cost |  | $ | 1,407 |  |  | $ | 1,365 |  |  | $ | 4,100 |  |  | $ | 4,057 |
Finance lease cost |  |  |  |  |  |  |  |
Amortization of ROU asset |  | 53 |  |  | 59 |  |  | 157 |  |  | 179 |
Interest on lease liabilities |  | 23 |  |  | 25 |  |  | 71 |  |  | 79 |
Total finance lease |  | 76 |  |  | 84 |  |  | 228 |  |  | 258 |
Total lease cost |  | $ | 1,483 |  |  | $ | 1,449 |  |  | $ | 4,328 |  |  | $ | 4,315 |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 1,400 |  |  | $ | 1,362 |  |  | $ | 4,142 |  |  | $ | 4,056 |
Operating cash flows from finance leases |  | 23 |  |  | 25 |  |  | 71 |  |  | 79 |
Financing cash flows from finance leases |  | 48 |  |  | 58 |  |  | 145 |  |  | 169 |
|  | $ | 1,471 |  |  | $ | 1,445 |  |  | $ | 4,358 |  |  | $ | 4,304 |
Right-of-use assets obtained in exchange for new operating lease liabilities, net of right-of-use assets disposed |  | $ | 1,397 |  |  | $ | 61 |  |  | $ | 3,254 |  |  | $ | 1,225 |
Weighted-average remaining lease term - operating leases |  | 5.71 years |  | 9.18 years |  | 5.71 years |  | 9.18 years
Weighted-average remaining lease term - finance leases |  | 7.61 years |  | 8.62 years |  | 7.61 years |  | 8.62 years
Weighted-average discount rate - operating leases |  | 6.6 | % |  | 7.6 | % |  | 6.6 | % |  | 7.6 | %
Weighted-average discount rate - finance leases |  | 5.1 | % |  | 5.1 | % |  | 5.1 | % |  | 5.1 | %
Rent expense charged to operations under operating lease agreements for the three and nine months ended September 30, 2025 aggregated to approximately $1,407 and $4,100, respectively, and $1,365 and $4,057 for the three and nine months ended September 30, 2024, respectively. Aggregate future minimum rental payments required under all non-cancelable operating and finance leases at September 30, 2025 are as follows:
Year |
October 1, 2025 to December 31, 2025 | $ | 1,444 |
2026 | 5,211 |
2027 | 3,767 |
2028 | 3,001 |
2029 | 2,533 |
2030 | 2,078 |
Thereafter | 4,737 |
Total minimum lease payments | $ | 22,771 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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