Leases and Other

3 Months Ended

Mar. 31, 2025

NOTE 20. LEASES AND OTHER

The balance sheet presentation of our operating and finance leases is as follows:


		March 31,		December 31,
(in thousands)	Classification on the Condensed Consolidated Balance Sheet	2025		2024
Assets:
Operating lease ROU assets	Operating lease ROU assets	$	27,561	$	26,765
Finance lease ROU assets, net	Property and equipment, net		50,008		48,103
Total lease ROU assets		$	77,569	$	74,868

Liabilities:
Current:
Operating lease obligations	Operating lease obligations	$	3,737	$	3,084
Finance lease obligations	Current portion of debt and finance obligations		928		883
Noncurrent:
Operating lease obligations	Long-term operating lease obligations		36,481		36,336
Finance lease obligations	Long-term debt and finance obligations		58,082		57,684
Total lease liabilities		$	99,228	$	97,987

The components of lease expense consisted of the following:


	Three Months Ended
	March 31,
(in thousands)	2025		2024
Finance lease cost:
Amortization of ROU assets	$	483	$	518
Interest on lease liabilities		1,329		1,358
Operating lease cost		1,647		1,664
Short-term lease cost		486		418
Variable lease cost		30		31
Total lease cost, net	$	3,975	$	3,989

Other information related to operating and finance leases are as follows:


	Three Months Ended
	March 31,
(in thousands)	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,682	$	1,619
Operating cash flows from finance leases	$	1,520	$	1,488
Financing cash flows from finance leases	$	221	$	309
ROU assets obtained in exchange for lease obligations:
Operating leases	$	1,721	$	240


	March 31,			December 31,
	2025			2024
Weighted-average remaining lease term (years):
Operating leases		10.34			10.82
Finance leases		34.60			35.02
Weighted-average discount rate:
Operating leases		7.27	%		7.29	%
Finance leases		9.22	%		9.22	%

As of March 31, 2025, the estimated future minimum lease payments under non-cancellable leases, excluding variable leases and variable non-lease components, are as follows:


(in thousands)	Operating Leases			Finance Leases			Total
Remainder of 2025	$	4,851		$	4,692		$	9,543
2026		6,088			6,271			12,359
2027		5,231			6,149			11,380
2028		5,050			5,987			11,037
2029		5,077			5,987			11,064
Thereafter		33,114			169,389			202,503
Total future lease payments		59,411			198,475			257,886
Less: Amount representing interest		(19,193	)		(139,465	)		(158,658	)
Present value of minimum lease payments		40,218			59,010			99,228
Current portion		(3,737	)		(928	)		(4,665	)
Long-term portion	$	36,481		$	58,082		$	94,563

As of March 31, 2025, the estimated future minimum rental income under non-cancellable leases, which includes rental income from facilities that we own, are as follows:


(in thousands)
Remainder of 2025	$	1,471
2026		1,650
2027		966
2028		790
2029		649
Thereafter		1,415
Total minimum rents	$	6,941