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Leases

3 Months Ended

Mar. 31, 2025

Leases [Abstract]

Leases

Leases

The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's leased plants and facilities relate to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital"), that was entered into in 2016 and since amended, with the latest amendment occurring in 2024. As of March 31, 2025, operating lease liabilities related to the master lease agreement with Store Capital totaled $30.6 million, or 94% of the total lease liabilities on the consolidated balance sheet.

During the three months ended March 31, 2025, the Company did not enter into any new finance lease agreements.

Operating and finance lease amounts from continuing operations included in the unaudited condensed consolidated balance sheet are as follows (in thousands):

Classification						Financial Statement Line Item						March 31, 2025						December 31, 2024
Long-term Assets						Right-of-use assets, operating leases						$	27,813					$	28,225
Long-term Assets						Property, plant and equipment						1,181						1,267
Current liabilities						Current portion of lease liabilities, operating leases						1,566						1,513
Current liabilities						Current portion of lease liabilities, finance leases						330						334
Non-current liabilities						Non-current portion of lease liabilities, operating leases						29,638						30,039
Non-current liabilities						Non-current portion of lease liabilities, finance leases						939						1,015

Total Lease Cost

Individual components of the total lease cost incurred by the Company are as follows:

			Three Months Ended March 31,
(in thousands)			2025						2024
Operating lease cost1			$	962					$	985
Finance lease cost:
Amortization of right-of-use assets			85						82
Interest on finance lease liabilities			19						23
Sublease income			(147)						(92)
Total lease cost			$	919					$	998

1Includes short term leases, which are immaterial

Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statements of income (loss).

The Company currently subleases the former Palmer facility and records cash receipts related to the sublease in other expense (income) on the unaudited condensed consolidated statements of income (loss). Future expected cash receipts from the Company's sublease as of March 31, 2025 are as follows:

(in thousands)			Sublease Receipts
Remainder of 2025			$	490
2026			594
2027			606
2028			618
2029			631
Thereafter			4,597
Total sublease receipts			$	7,536

Maturity of Leases

The amounts of undiscounted future minimum lease payments under leases in continuing operations as of March 31, 2025 are as follows:

(in thousands)			Operating						Finance
Remainder of 2025			$	2,800					$	304
2026			3,750						361
2027			3,825						361
2028			3,903						303
2029			3,971						85
Thereafter			27,966						—
Total undiscounted minimum future lease payments			46,215						1,414
Imputed interest			(15,011)						(145)
Present value of lease liabilities			$	31,204					$	1,269

Lease Term and Discount Rate

Weighted-average remaining lease term			March 31, 2025						December 31, 2024
Operating leases			11.36 years						11.61 years
Finance leases			3.80 years						4.03 years
Weighted-average discount rate
Operating leases			7.17		%				7.17		%
Finance leases			5.96		%				5.97		%

Leases

Leases

The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's leased plants and facilities relate to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital"), that was entered into in 2016 and since amended, with the latest amendment occurring in 2024. As of March 31, 2025, operating lease liabilities related to the master lease agreement with Store Capital totaled $30.6 million, or 94% of the total lease liabilities on the consolidated balance sheet.

During the three months ended March 31, 2025, the Company did not enter into any new finance lease agreements.

Operating and finance lease amounts from continuing operations included in the unaudited condensed consolidated balance sheet are as follows (in thousands):

Classification						Financial Statement Line Item						March 31, 2025						December 31, 2024
Long-term Assets						Right-of-use assets, operating leases						$	27,813					$	28,225
Long-term Assets						Property, plant and equipment						1,181						1,267
Current liabilities						Current portion of lease liabilities, operating leases						1,566						1,513
Current liabilities						Current portion of lease liabilities, finance leases						330						334
Non-current liabilities						Non-current portion of lease liabilities, operating leases						29,638						30,039
Non-current liabilities						Non-current portion of lease liabilities, finance leases						939						1,015

Total Lease Cost

Individual components of the total lease cost incurred by the Company are as follows:

			Three Months Ended March 31,
(in thousands)			2025						2024
Operating lease cost1			$	962					$	985
Finance lease cost:
Amortization of right-of-use assets			85						82
Interest on finance lease liabilities			19						23
Sublease income			(147)						(92)
Total lease cost			$	919					$	998

1Includes short term leases, which are immaterial

Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statements of income (loss).

The Company currently subleases the former Palmer facility and records cash receipts related to the sublease in other expense (income) on the unaudited condensed consolidated statements of income (loss). Future expected cash receipts from the Company's sublease as of March 31, 2025 are as follows:

(in thousands)			Sublease Receipts
Remainder of 2025			$	490
2026			594
2027			606
2028			618
2029			631
Thereafter			4,597
Total sublease receipts			$	7,536

Maturity of Leases

The amounts of undiscounted future minimum lease payments under leases in continuing operations as of March 31, 2025 are as follows:

(in thousands)			Operating						Finance
Remainder of 2025			$	2,800					$	304
2026			3,750						361
2027			3,825						361
2028			3,903						303
2029			3,971						85
Thereafter			27,966						—
Total undiscounted minimum future lease payments			46,215						1,414
Imputed interest			(15,011)						(145)
Present value of lease liabilities			$	31,204					$	1,269

Lease Term and Discount Rate

Weighted-average remaining lease term			March 31, 2025						December 31, 2024
Operating leases			11.36 years						11.61 years
Finance leases			3.80 years						4.03 years
Weighted-average discount rate
Operating leases			7.17		%				7.17		%
Finance leases			5.96		%				5.97		%

Leases

Leases

The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's leased plants and facilities relate to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital"), that was entered into in 2016 and since amended, with the latest amendment occurring in 2024. As of March 31, 2025, operating lease liabilities related to the master lease agreement with Store Capital totaled $30.6 million, or 94% of the total lease liabilities on the consolidated balance sheet.

During the three months ended March 31, 2025, the Company did not enter into any new finance lease agreements.

Operating and finance lease amounts from continuing operations included in the unaudited condensed consolidated balance sheet are as follows (in thousands):

Classification						Financial Statement Line Item						March 31, 2025						December 31, 2024
Long-term Assets						Right-of-use assets, operating leases						$	27,813					$	28,225
Long-term Assets						Property, plant and equipment						1,181						1,267
Current liabilities						Current portion of lease liabilities, operating leases						1,566						1,513
Current liabilities						Current portion of lease liabilities, finance leases						330						334
Non-current liabilities						Non-current portion of lease liabilities, operating leases						29,638						30,039
Non-current liabilities						Non-current portion of lease liabilities, finance leases						939						1,015

Total Lease Cost

Individual components of the total lease cost incurred by the Company are as follows:

			Three Months Ended March 31,
(in thousands)			2025						2024
Operating lease cost1			$	962					$	985
Finance lease cost:
Amortization of right-of-use assets			85						82
Interest on finance lease liabilities			19						23
Sublease income			(147)						(92)
Total lease cost			$	919					$	998

1Includes short term leases, which are immaterial

Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statements of income (loss).

The Company currently subleases the former Palmer facility and records cash receipts related to the sublease in other expense (income) on the unaudited condensed consolidated statements of income (loss). Future expected cash receipts from the Company's sublease as of March 31, 2025 are as follows:

(in thousands)			Sublease Receipts
Remainder of 2025			$	490
2026			594
2027			606
2028			618
2029			631
Thereafter			4,597
Total sublease receipts			$	7,536

Maturity of Leases

The amounts of undiscounted future minimum lease payments under leases in continuing operations as of March 31, 2025 are as follows:

(in thousands)			Operating						Finance
Remainder of 2025			$	2,800					$	304
2026			3,750						361
2027			3,825						361
2028			3,903						303
2029			3,971						85
Thereafter			27,966						—
Total undiscounted minimum future lease payments			46,215						1,414
Imputed interest			(15,011)						(145)
Present value of lease liabilities			$	31,204					$	1,269

Lease Term and Discount Rate

Weighted-average remaining lease term			March 31, 2025						December 31, 2024
Operating leases			11.36 years						11.61 years
Finance leases			3.80 years						4.03 years
Weighted-average discount rate
Operating leases			7.17		%				7.17		%
Finance leases			5.96		%				5.97		%

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- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/842-20/tableOfContent

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The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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The entire disclosure for sale leaseback transaction. Includes, but is not limited to, terms and conditions of transaction and gain (loss) from transaction.

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