Leases

3 Months Ended

Mar. 31, 2025

NOTE 10. LEASES

We lease certain equipment, office space and land. Lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease.

The following table presents supplemental balance sheet information related to lease assets and liabilities:


(in thousands)	Classification	March 31, 2025		December 31, 2024
Assets
Operating lease assets	Other long-term assets	$	10,481	$	10,167
Finance lease assets1	Property, plant and equipment, net		12,113		12,266
Total lease assets		$	22,594	$	22,433

Liabilities
Current:
Operating lease liabilities	Accounts payable and accrued liabilities	$	3,249	$	3,027
Finance lease liabilities	Accounts payable and accrued liabilities		5,236		5,257
Noncurrent:
Operating lease liabilities	Other long-term obligations		6,985		7,030
Finance lease liabilities	Other long-term obligations		6,804		6,959
Total lease liabilities		$	22,274	$	22,273

Finance lease assets are presented net of accumulated amortization of $12.2 million and $12.6 million at March 31, 2025 and December 31, 2024. respectively.

The following table presents the components of lease expense:


	Three Months Ended March 31,
(in thousands)	2025		2024
Operating lease costs1	$	895	$	839
Finance lease costs:
Amortization of leased assets		1,445		1,269
Interest expense		159		134
Net lease costs	$	2,499	$	2,242

Excludes short-term leases and variable lease costs, which are immaterial.

The following table presents supplemental cash flow information related to leases:


	Three Months Ended March 31,
(in thousands)	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	942	$	887
Operating cash flows for finance leases	$	159	$	134
Financing cash flows for finance leases	$	1,446	$	1,312
Leased assets exchanged for new lease liabilities:
Operating leases	$	982	$	393
Finance leases	$	1,273	$	1,831