XML 46 R27.htm IDEA: XBRL DOCUMENT

Leases

12 Months Ended

Dec. 31, 2024

Note 19: Leases

The Company recognizes operating and finance leases with a duration greater than 12 months on the Consolidated Balance Sheet with a Right-Of-Use (ROU) asset and liability at the present value of lease payments over the term. Leases that include rental escalation clauses or renewal options are factored into the determination of lease payments when appropriate. There are no residual value guarantees on the existing leases. The Company estimates its incremental borrowing rate at lease commencement to determine the present value of lease payments, since most of the Company’s leases do not provide an implicit rate of return. ROU assets exclude lessor incentives received.

The Company subleases certain real estate to third parties. Our sublease portfolio consists solely of operating leases. As of December 31, 2024, the Company had no operating leases that had not yet commenced. During the year ended December 31, 2024, the Company entered into new leases or modified existing leases that resulted in an increase of ROU assets in exchange for operating lease liabilities as disclosed below.

During the year ended December 31, 2024, the Company assumed certain leases as part of its acquisition of Spinnaker. The disclosures below include the information related to the leases after the acquisition. See note titled Business Acquisition for further information related to those leases.

Lease Position:

The table below represents the assets and liabilities related to operating leases recorded on the Consolidated Balance Sheet:


December 31,	2024		2023
(in thousands)
Assets:
Operating lease right-of-use assets	$	27,465	$	24,537
Finance lease right-of-use assets		4,400		1,036
Total lease assets	$	31,865	$	25,573

Liabilities:
Current portion of operating leases	$	7,108	$	7,367
Current portion of finance lease liabilities and finance obligations		3,522		375
Long-term finance lease liabilities		559		819
Long-term operating lease liabilities		21,724		18,600
Total lease liabilities	$	32,913	$	27,161

Lease costs:

The components of finance lease are included in depreciation and amortization and interest expense; operating lease expense are included in costs of goods sold, and selling, general and administrative expenses in the Consolidated Statements of Operations as disclosed below.


Year ended December 31,	2024		2023		2022
(in thousands)
Finance lease cost
Amortization of leased assets	$	265	$	129	$	3,390
Interest on lease liabilities		174		48		283
Total finance lease cost	$	439	$	177	$	3,673

Operating lease cost	$	17,206	$	15,096	$	9,615
Short-term lease cost		2,289		1,862		9,192
Variable lease cost		855		774		647
Sublease income		(1,943)		(1,400)		(1,021)
Total operating lease cost	$	18,407	$	16,332	$	18,433

Total lease cost	$	18,846	$	16,509	$	22,106

Other Information:


As of December 31,	2024			2023
Cash paid for amounts included in the measurement of lease liabilities – operating leases (in thousands)	$	12,230		$	12,475
Cash paid for amounts included in the measurement of lease liabilities – finance lease and finance obligations (in thousands)	$	799		$	515
ROU assets obtained in exchange for operating lease liabilities (in thousands)	$	15,094		$	8,151
ROU assets obtained in exchange for finance lease liabilities (in thousands)	$	3,622		$	1,036
Weighted average remaining lease term – finance lease (years)		3.00			4.00
Weighted average remaining lease term – operating leases (years)		5.96			5.06
Weighted average discount rate – finance lease		2.3	%		2.3	%
Weighted average discount rate – operating leases		4.57	%		4.42	%

Lease Commitments:

Maturity of lease liabilities and finance obligations:


As of December 31,		2024
(in thousands)		Operating		Finance
2025	$	8,231		4,095
2026		7,216		283
2027		4,733		288
2028		3,036		—
2029		2,040		—
Thereafter		7,784		—
Total lease payments		33,040		4,666
Less: Amounts representing interest		(4,208)		(585)
Present value of lease liabilities	$	28,832	$	4,081