LEASES AND RELATED PARTY LEASES

3 Months Ended

Mar. 31, 2025

The Company leases administrative, manufacturing, research and distribution facilities, and vehicles through operating lease agreements. The Company has no finance leases as of March 31, 2025. Many of the Company’s leases include both lease (e.g., fixed payments including rent) and non-lease components (e.g., common-area or other maintenance costs). For vehicles, the Company has elected the practical expedient to group lease and non-lease components.

Most facility leases include one or more options to renew. The exercise of lease renewal options is typically at the Company’s sole discretion, therefore, the majority of renewals to extend the lease terms are not included in the Right of Use (“ROU”) assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates renewal options and when they are reasonably certain of exercise, the renewal period is included in the lease term.

As most of the Company’s leases do not provide an implicit rate, the Company uses a collateralized incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments.

Total operating lease expense for the three months ended March 31, 2025 and March 31, 2024 was $5.9 million and $6.3 million, respectively, which includes $0.1 million, in related party operating lease expense.

Supplemental balance sheet information related to operating leases were as follows:


Dollars in thousands, except lease term and discount rate	March 31, 2025			December 31, 2024
ROU assets	$	138,463		$	144,042

Current lease liabilities	14,171			14,540
Non-current lease liabilities	161,476			166,930
Total lease liabilities	$	175,647		$	181,470

Weighted average remaining lease term (in years):
Leased facilities	16.0 years			16.1 years
Leased vehicles	2.3 years			2.3 years

Weighted average discount rate:
Leased facilities	5.3		%	5.4		%
Leased vehicles	2.8		%	2.8		%

Supplemental cash flow information related to leases for the three months ended March 31, 2025 and 2024 were as follows:


Dollars in thousands	March 31, 2025		March 31, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,890	$	5,734

ROU assets obtained in exchange for lease liabilities, net of modifications:
Operating leases	$	958	$	746

Future minimum lease payments under operating leases at March 31, 2025 were as follows:


Dollars in thousands	Related Parties		Third Parties		Total
Remainder of 2025	$	222	$	17,011	$	17,233
2026	296		19,584		19,880
2027	296		19,256		19,552
2028	296		17,230		17,526
2029	246		17,021		17,267
2030	—		16,828		16,828
Thereafter	—		150,848		150,848
Total minimum lease payments	$	1,356	$	257,778	$	259,134
Less: Imputed interest					83,487
Total lease liabilities					175,647
Less: Current lease liabilities					14,171
Long-term lease liabilities					161,476

There were no future minimum lease payments under finance leases at March 31, 2025.

Related Party Leases

The Company leases one of its manufacturing facilities in Plainsboro, New Jersey, from a general partnership that is 50% owned by a principal stockholder of the Company. The term of the current lease agreement is through October 31, 2029 at an annual rate of approximately $0.3 million. The current lease agreement also provides (i) a 5-year renewal option for the Company to extend the lease from November 1, 2029 through October 31, 2034 at the fair market rental rate of the premises, and (ii) another 5-year renewal option to extend the lease from November 1, 2034 through October 31, 2039 at the fair market rental rate of the premises.