LEASES AND RELATED PARTY LEASES

9 Months Ended

Sep. 30, 2025

The Company leases administrative, manufacturing, research and distribution facilities, and vehicles through operating lease agreements. The Company has no finance leases as of September 30, 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 nine months ended September 30, 2025 and September 30, 2024 was $17.8 million and $18.8 million, respectively, which includes $0.2 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	September 30, 2025			December 31, 2024
ROU assets	$	138,187		$	144,042

Current lease liabilities	13,826			14,540
Non-current lease liabilities	160,933			166,930
Total lease liabilities	$	174,759		$	181,470

Weighted average remaining lease term (in years):
Leased facilities	16.0 years			16.1 years
Leased vehicles	2.8 years			2.3 years

Weighted average discount rate:
Leased facilities	5.3		%	5.4		%
Leased vehicles	3.2		%	2.8		%

Supplemental cash flow information related to leases for the nine months ended September 30, 2025 and 2024 were as follows:


Dollars in thousands	September 30, 2025		September 30, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	17,729	$	18,255

ROU assets obtained in exchange for lease liabilities, net of modifications:
Operating leases	$	6,493	$	1,575

Future minimum lease payments under operating leases at September 30, 2025 were as follows:


Dollars in thousands	Related Parties		Third Parties		Total
Remainder of 2025	$	74	$	5,698	$	5,772
2026	296		17,324		17,620
2027	296		20,620		20,916
2028	296		18,187		18,483
2029	246		17,869		18,115
2030	—		17,642		17,642
Thereafter	—		163,525		163,525
Total minimum lease payments	$	1,208	$	260,865	$	262,073
Less: Imputed interest					87,314
Total lease liabilities					174,759
Less: Current lease liabilities					13,826
Long-term lease liabilities					160,933

There were no future minimum lease payments under finance leases at September 30, 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.