v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases Leases
The Company has operating leases with fixed and variable payment terms primarily associated with buildings and warehouses. The Company's leases have remaining lease terms of twelve months to ten years, some of which include options to extend the lease for three years. Operating leases are included in right-of-use ("ROU") assets, other accrued liabilities and other non-current liabilities on the Consolidated Balance Sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease.
The Company used the applicable incremental borrowing rate at lease inception date to measure lease liabilities and ROU assets. The incremental borrowing rate used by the Company was based on baseline rates and adjusted by the credit spreads commensurate with the Company’s secured borrowing rate. When there is a new lease initiated, the Company will utilize the rate implicit in the lease if readily determinable and if not readily determinable, then the Company will utilize the incremental borrowing rate to perform lease classification tests on lease components and to measure ROU assets and lease liabilities.
The following table provides information related to the components of lease expense as of December 31 (in thousands):
20252024
Operating lease cost$2,295 $1,237 
Short-term lease cost1,246 1,782 
Total net lease cost$3,541 $3,019 
The following table provides information related to other supplemental balance sheet information related to operating leases as of December 31, (in thousands):
20252024
Operating lease right of use assets$14,494 $2,112 
Total operating lease right of use assets$14,494 $2,112 
Current operating lease liabilities (A)
$1,721 $1,178 
Noncurrent operating lease liabilities 13,113 997 
Total operating lease liabilities$14,834 $2,175 
(A)    Current operating lease liability included in "Other Current Accrued Liabilities" on the Consolidated Balance Sheets.
20252024
Weighted average remaining lease term (in years):8.41.6
Weighted average discount rate: 6.2  %5.5 %
For the years ended December 31, 2025 and 2024, cash payments on amounts included in the measurement of lease liabilities were $2,047,000 and $2,079,000, respectively. During the year ended December 31, 2025, the Company entered into a new lease related to the Monterrey expansion, resulting in $10,825,000 right of use assets obtained in exchange for new operating lease liabilities.
As of December 31, 2025, maturities of lease liabilities were as follows (in thousands):
Operating Leases
2026$2,599 
20272,311 
20282,355 
20292,382 
2030 and thereafter9,781 
Total lease payments19,428 
Less: imputed interest(4,594)
Total lease obligations14,834 
Less: current obligations(1,721)
Long-term lease obligations$13,113