| Lease Obligations |
The Company has certain property leases, with former owners and members for facilities of the Company’s subsidiaries. Most of these leases are accounted for as finance leases except for facilities leased by AEC and a plane hangar leased by Systima, which are accounted for as operating leases. Total lease payments amounted to $12.8 million, $11.3 million and $6.2 million for the years ended December 31, 2025, 2024 and 2023. The Company has month-to-month rentals and other short-term leases, which are expensed as incurred. Expenses associated with short term leases were $0.9 million, $0.6 million and $0.4 million for the years ended December 31, 2025, 2024 and 2023, respectively. Consolidated Lease Summary On a consolidated basis, lease activity for the years ended December 31, 2025, 2024 and 2023 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in thousands) |
|
Finance lease expense |
|
|
|
|
|
|
|
|
|
Amortization of ROU assets |
|
$ |
6,963 |
|
|
$ |
6,246 |
|
|
$ |
4,764 |
|
Interest on lease liabilities |
|
|
6,805 |
|
|
|
6,729 |
|
|
|
5,470 |
|
Operating lease expense |
|
|
2,194 |
|
|
|
1,772 |
|
|
|
1,677 |
|
Total |
|
$ |
15,962 |
|
|
$ |
14,747 |
|
|
$ |
11,911 |
|
Amortization of ROU assets are included in the depreciation and amortization expense line of the Consolidated Statements of Operations. On a consolidated basis, supplemental cash flow information for the years ended December 31, 2025, 2024 and 2023 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
Cash paid for amounts included in the measurement of lease liabilities |
|
(in thousands except percent and year) |
|
Operating cash flows from finance leases |
|
$ |
6,644 |
|
|
$ |
6,610 |
|
|
$ |
5,387 |
|
Financing cash flows from finance leases |
|
$ |
3,899 |
|
|
$ |
2,869 |
|
|
$ |
1,532 |
|
Operating cash flows from operating leases |
|
$ |
2,250 |
|
|
$ |
1,804 |
|
|
$ |
1,455 |
|
ROU assets obtained in exchange for new finance lease liabilities |
|
$ |
3,588 |
|
|
$ |
7,078 |
|
|
$ |
7,712 |
|
ROU assets obtained in exchange for new operating lease liabilities |
|
$ |
1,454 |
|
|
$ |
885 |
|
|
$ |
2,802 |
|
Weighted-average remaining lease term in years for finance leases |
|
|
13.52 |
|
|
|
13.75 |
|
|
|
15.00 |
|
Weighted-average remaining lease term in years for operating leases |
|
|
5.36 |
|
|
|
6.16 |
|
|
|
6.94 |
|
Weighted-average discount rate for finance leases |
|
|
8.21 |
% |
|
|
8.42 |
% |
|
|
7.88 |
% |
Weighted-average discount rate for operating leases |
|
|
9.49 |
% |
|
|
9.52 |
% |
|
|
8.97 |
% |
On a consolidated basis, maturities of lease liabilities are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ending December 31, |
|
Finance Lease |
|
|
Operating Lease |
|
|
Total |
|
2026 |
|
$ |
10,826 |
|
|
$ |
2,371 |
|
|
$ |
13,197 |
|
2027 |
|
|
11,048 |
|
|
|
2,291 |
|
|
|
13,339 |
|
2028 |
|
|
11,082 |
|
|
|
1,548 |
|
|
|
12,630 |
|
2029 |
|
|
9,497 |
|
|
|
593 |
|
|
|
10,090 |
|
2030 |
|
|
8,745 |
|
|
|
163 |
|
|
|
8,908 |
|
Thereafter |
|
|
87,068 |
|
|
|
1,662 |
|
|
|
88,730 |
|
Total undiscounted cash flows |
|
|
138,266 |
|
|
|
8,628 |
|
|
|
146,894 |
|
Less: present value discount |
|
|
(56,870 |
) |
|
|
(1,864 |
) |
|
|
(58,734 |
) |
Total lease liabilities |
|
$ |
81,396 |
|
|
$ |
6,764 |
|
|
$ |
88,160 |
|
|