Leases and Other

9 Months Ended

Sep. 30, 2025

NOTE 17. LEASES AND OTHER

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


		September 30,		December 31,
(in thousands)	Classification on the Condensed Consolidated Balance Sheet	2025		2024
Assets:
Operating lease ROU assets	Operating lease right-of-use assets	$	25,619	$	26,765
Finance lease ROU assets, net	Property and equipment, net		54,645		48,103
Total lease ROU assets		$	80,264	$	74,868

Liabilities:
Current:
Operating lease obligations	Operating lease obligations	$	3,303	$	3,084
Finance lease obligations	Current portion of debt and finance lease obligations		1,257		883
Noncurrent:
Operating lease obligations	Long-term operating lease obligations		34,865		36,336
Finance lease obligations	Long-term debt and finance lease obligations		59,279		57,684
Total lease liabilities		$	98,704	$	97,987

The components of lease expense consisted of the following:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2025		2024		2025		2024
Finance lease cost:
Amortization of ROU assets	$	519	$	482	$	1,505	$	1,520
Interest on lease liabilities		1,384		1,343		4,050		4,043
Operating lease cost		1,675		1,671		5,069		4,988
Short-term lease cost		1,055		1,237		2,316		2,422
Variable lease cost		77		31		137		94
Total lease cost, net	$	4,710	$	4,764	$	13,077	$	13,067

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


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2025		2024		2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,829	$	1,645	$	5,325	$	4,977
Operating cash flows from finance leases	$	1,584	$	1,528	$	4,703	$	4,535
Financing cash flows from finance leases	$	250	$	214	$	710	$	789
ROU assets obtained in exchange for lease obligations:
Operating leases	$	3	$	795	$	2,142	$	1,186


	September 30,			December 31,
	2025			2024
Weighted-average remaining lease term (years):
Operating leases		10.2			10.8
Finance leases		33.8			35.0
Weighted-average discount rate:
Operating leases		7.3	%		7.3	%
Finance leases		9.2	%		9.2	%

As of September 30, 2025, the estimated future minimum lease payments under non-cancellable leases, excluding variable leases and variable non-lease components, include:


(in thousands)	Operating Leases			Finance Leases			Total
Remainder of 2025	$	1,159		$	2,334		$	3,493
2026		5,981			6,439			12,420
2027		5,327			6,315			11,642
2028		5,093			6,146			11,239
2029		5,101			6,146			11,247
Thereafter		33,374			170,882			204,256
Total future lease payments		56,035			198,262			254,297
Less: Amount representing interest		(17,867	)		(137,726	)		(155,593	)
Present value of minimum lease payments		38,168			60,536			98,704
Current portion		(3,303	)		(1,257	)		(4,560	)
Long-term portion	$	34,865		$	59,279		$	94,144

As of September 30, 2025, the estimated future minimum rental income under non-cancellable leases, which includes rental income from facilities that we own, include:


(in thousands)
Remainder of 2025	$	492
2026		1,771
2027		1,050
2028		878
2029		741
Thereafter		1,522
Total minimum rental income	$	6,454