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Leases | 9 Months Ended
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Sep. 30, 2025
Leases [Abstract] |
Leases | Leases We have entered into various operating lease agreements for automobiles, offices and manufacturing facilities throughout the world. At September 30, 2025, our operating leases had remaining lease terms of up to 35 years, including any reasonably probable extensions. Lease balances within our consolidated balance sheets were as follows:
(In thousands) | September 30, 2025 |  | December 31, 2024
Assets: |  |  |
Operating lease right-of-use assets | $ | 11,003 |  |  | $ | 14,322 |
Liabilities: |  |  |
Other accrued liabilities | $ | 3,686 |  |  | $ | 3,553 |
Long-term operating lease obligations | 6,889 |  |  | 9,232 |
Total lease liabilities | $ | 10,575 |  |  | $ | 12,785 |
Operating lease expense, operating lease cash flows and supplemental cash flow information were as follows:
(In thousands) | Three Months Ended September 30, |  | Nine Months Ended September 30,
2025 |  | 2024 |  | 2025 |  | 2024
Cost of sales | $ | 404 |  |  | $ | 562 |  |  | $ | 1,073 |  |  | $ | 1,859 |
Selling, general and administrative expenses | 2,451 |  |  | 1,112 |  |  | 4,721 |  |  | 3,365 |
Total operating lease expense | $ | 2,855 |  |  | $ | 1,674 |  |  | $ | 5,794 |  |  | $ | 5,224 |
Operating lease expenses from variable and short-term lease costs | $ | 390 |  |  | $ | 315 |  |  | $ | 1,112 |  |  | $ | 832 |
Operating cash outflows from operating leases | $ | 1,935 |  |  | $ | 2,062 |  |  | $ | 4,800 |  |  | $ | 5,377 |
Operating lease right-of-use assets obtained in exchange for lease obligations | $ | 950 |  |  | $ | 160 |  |  | $ | 4,835 |  |  | $ | 169 |
As part of our continued evaluation of our global manufacturing footprint and our overall cost optimization and return to profitability strategy, we made the decision to cease production activities and shut down our manufacturing facility in Mexico and to vacate and abandon our office space in Carlsbad, California. As a result of these actions, we reassessed our Mexico factory lease and recorded a decrease of $0.7 million and $0.8 million to our Mexico operating lease ROU asset and lease liability, respectively, during the three months ended September 30, 2025. In addition, the estimated useful lives of the Mexico and Carlsbad related ROU assets were revised to reflect shorter lease terms than those originally estimated at lease inception. A change in the estimated useful life of a long-lived asset represents a change in accounting estimate and is accounted for prospectively. The Mexico ROU asset is expected to be fully amortized by December 31, 2025. The Carlsbad ROU asset was fully amortized as of September 30, 2025 and we recognized accelerated amortization of $1.3 million during the three and nine months ended September 30, 2025. The weighted average remaining lease liability term and the weighted average discount rate were as follows:
| September 30, 2025 |  | December 31, 2024
Weighted average lease liability term (in years) | 4.2 |  | 4.6
Weighted average discount rate | 5.77 | % |  | 5.45 | %
The following table reconciles the undiscounted cash flows for each of the first five years and thereafter to the operating lease liabilities recognized in our consolidated balance sheets at September 30, 2025. The reconciliation excludes short-term leases that are not recorded in our consolidated balance sheets.
(In thousands) | September 30, 2025
2025 (remaining 3 months) | $ | 826 |
2026 | 4,426 |
2027 | 2,971 |
2028 | 1,206 |
2029 | 581 |
Thereafter | 2,139 |
Total lease payments | 12,149 |
Less: imputed interest | (1,574) |
Total lease liabilities | $ | 10,575 |
At September 30, 2025, we did not have any operating leases that had not yet commenced.

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- Definition 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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