Leases (Notes)

9 Months Ended

Sep. 30, 2025

Leases

The majority of the Company's lease obligations are non-cancelable operating leases for certain equipment and facilities. The Company's finance leases are for certain equipment as part of the Company's acquisition of Aarts. Leases with an initial term of 12 months or less are not recorded on the balance sheet; expense related to these leases is recognized on a straight-line basis over the lease term.

Supplemental balance sheet information related to the Company's leases are shown below (dollars in thousands):


	Balance Sheet Location	September 30, 2025		December 31, 2024
Assets
Operating leases	Operating lease right-of-use assets	$	43,340	$	40,480
Finance leases	Property and equipment, net (a)	2,210		2,110
Total lease assets		$	45,550	$	42,590
Liabilities
Current:
Operating leases	Lease liabilities, current portion	$	9,110	$	7,580
Finance leases	Lease liabilities, current portion	530		460
Long-term:
Operating leases	Lease liabilities	37,280		35,520
Finance leases	Lease liabilities	940		1,160
Total lease liabilities		$	47,860	$	44,720

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(a) Finance leases were recorded net of accumulated depreciation of $0.6 million and $0.4 million as of September 30, 2025 and December 31, 2024, respectively.

The components of lease expense are as follows (dollars in thousands):


		Three months ended September 30,				Nine months ended September 30,
	Statement of Income Location	2025		2024		2025		2024
Operating lease cost	Cost of sales and Selling, general and administrative expenses	$	2,900	$	2,270	$	8,400	$	7,110
Finance lease cost:
Depreciation of lease assets	Cost of sales	60		70		190		180
Interest on lease liabilities	Interest expense	10		10		30		40
Short-term, variable and other lease costs	Cost of sales and Selling, general and administrative expenses	1,230		1,010		3,370		3,160
Total lease cost		$	4,200	$	3,360	$	11,990	$	10,490

Maturities of lease liabilities are as follows (dollars in thousands):


Year ended December 31,	Operating Leases(a)		Finance Leases(a)
2025 (excluding the nine months ended September 30, 2025)	$	2,720	$	140
2026	11,200		640
2027	9,820		750
2028	7,850		—
2029	6,440		—
Thereafter	14,200		—
Total lease payments	52,230		1,530
Less: Imputed interest	(5,840)		(60)
Present value of lease liabilities	$	46,390	$	1,470

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(a) The maturity table excludes cash flows associated with exited lease facilities. Liabilities for exited lease facilities are included in accrued liabilities and other long-term liabilities in the accompanying consolidated balance sheet.

Other information related to the Company's leases are as follows (dollars in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,750	$	2,360	$	8,160	$	7,040
Operating cash flows from finance leases	10		10		30		40
Financing cash flows from finance leases	130		120		370		360
Lease assets obtained in exchange for new lease liabilities:
Operating leases	—		4,170		8,670		5,120

The weighted-average remaining lease term of the Company's operating leases and finance leases as of September 30, 2025 is 5.7 years and 1.8 years, respectively. The weighted-average discount rate for the operating leases and finance leases as of September 30, 2025 is 4.5% and 2.6%, respectively.