v3.26.1
LEASES
 3 Months Ended
Mar. 31, 2026
Leases [Abstract]  
LEASES LEASES
The Company has both real estate leases and equipment leases. The Company developed four tranches of leases based on lease terms and these tranches reflect the composition of the current lease portfolio. The Company's borrowing history shows that interest rates of a term loan or a line of credit depend on the duration of the loan rather than the nature of the assets purchased by those funds. Based on this understanding, the Company elected to use a portfolio approach to discount rates, applying corporate rates to the tranches of leases based on lease terms. Based on the Company's risk rating, the Company applied the following
discount rates for new leases entered into during the first quarter of 2026: (1) 1-2 years, 5.02% (2) 3-4 years, 5.61% (3) 5-9 years, 5.95% and (4) 10+ years, 6.67%.
Right of use assets and lease liabilities at March 31, 2026 and December 31, 2025 are summarized as follows:

Right of use assetsMarch 31, 2026December 31, 2025
Operating leases$13,661 $14,672 
Finance leases1,469 1,520 
Total$15,130 $16,192 

Lease liabilities - currentMarch 31, 2026December 31, 2025
Operating leases$3,444 $3,614 
Finance leases207 205 
Total$3,651 $3,819 

Lease liabilities - non-currentMarch 31, 2026December 31, 2025
Operating leases$10,571 $11,324 
Finance leases1,492 1,544 
Total$12,063 $12,868 
For the three months ended March 31, 2026 and 2025, the Company's total lease costs were as follows, which included amounts recognized in earnings, amounts capitalized on the balance sheets, and the cash flows arising from lease transactions:
Three Months Ended
March 31,
20262025
Lease Cost
Operating lease cost$1,302 $1,325 
Finance lease cost
Amortization of ROU asset52 52 
Interest on lease liabilities22 24 
Total finance lease74 76 
Total lease cost$1,376 $1,401 
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$1,303 $1,357 
Operating cash flows from finance leases22 24 
Financing cash flows from finance leases51 49 
$1,376 $1,430 
Right-of-use assets obtained in exchange for new operating lease liabilities, net
   of right-of-use assets disposed		$133 $1,202 
Weighted-average remaining lease term - operating leases5.61 years8.84 years
Weighted-average remaining lease term - finance leases7.00 years8.12 years
Weighted-average discount rate - operating leases7.0 %7.6 %
Weighted-average discount rate - finance leases5.1 %5.1 %
Rent expense charged to operations under operating lease agreements for the three months ended March 31, 2026 and 2025 aggregated to $1,302 and $1,325, respectively.
Aggregate future minimum rental payments required under all non-cancelable operating and finance leases at March 31, 2026 are as follows:

Year 
April 1, 2026 to December 31, 2026$3,540 
20273,719 
20282,930 
20292,506 
20302,050 
20311,826 
Thereafter2,573 
Total undiscounted lease payments19,144 
Less: Present value adjustment(3,430)
Present value of lease liabilities$15,714 
LEASES LEASES
The Company has both real estate leases and equipment leases. The Company developed four tranches of leases based on lease terms and these tranches reflect the composition of the current lease portfolio. The Company's borrowing history shows that interest rates of a term loan or a line of credit depend on the duration of the loan rather than the nature of the assets purchased by those funds. Based on this understanding, the Company elected to use a portfolio approach to discount rates, applying corporate rates to the tranches of leases based on lease terms. Based on the Company's risk rating, the Company applied the following
discount rates for new leases entered into during the first quarter of 2026: (1) 1-2 years, 5.02% (2) 3-4 years, 5.61% (3) 5-9 years, 5.95% and (4) 10+ years, 6.67%.
Right of use assets and lease liabilities at March 31, 2026 and December 31, 2025 are summarized as follows:

Right of use assetsMarch 31, 2026December 31, 2025
Operating leases$13,661 $14,672 
Finance leases1,469 1,520 
Total$15,130 $16,192 

Lease liabilities - currentMarch 31, 2026December 31, 2025
Operating leases$3,444 $3,614 
Finance leases207 205 
Total$3,651 $3,819 

Lease liabilities - non-currentMarch 31, 2026December 31, 2025
Operating leases$10,571 $11,324 
Finance leases1,492 1,544 
Total$12,063 $12,868 
For the three months ended March 31, 2026 and 2025, the Company's total lease costs were as follows, which included amounts recognized in earnings, amounts capitalized on the balance sheets, and the cash flows arising from lease transactions:
Three Months Ended
March 31,
20262025
Lease Cost
Operating lease cost$1,302 $1,325 
Finance lease cost
Amortization of ROU asset52 52 
Interest on lease liabilities22 24 
Total finance lease74 76 
Total lease cost$1,376 $1,401 
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$1,303 $1,357 
Operating cash flows from finance leases22 24 
Financing cash flows from finance leases51 49 
$1,376 $1,430 
Right-of-use assets obtained in exchange for new operating lease liabilities, net
   of right-of-use assets disposed		$133 $1,202 
Weighted-average remaining lease term - operating leases5.61 years8.84 years
Weighted-average remaining lease term - finance leases7.00 years8.12 years
Weighted-average discount rate - operating leases7.0 %7.6 %
Weighted-average discount rate - finance leases5.1 %5.1 %
Rent expense charged to operations under operating lease agreements for the three months ended March 31, 2026 and 2025 aggregated to $1,302 and $1,325, respectively.
Aggregate future minimum rental payments required under all non-cancelable operating and finance leases at March 31, 2026 are as follows:

Year 
April 1, 2026 to December 31, 2026$3,540 
20273,719 
20282,930 
20292,506 
20302,050 
20311,826 
Thereafter2,573 
Total undiscounted lease payments19,144 
Less: Present value adjustment(3,430)
Present value of lease liabilities$15,714