LEASES AND RELATED PARTY LEASES

3 Months Ended

Mar. 31, 2026

The Company leases administrative, manufacturing, research and distribution facilities, equipment and vehicles through operating lease agreements. The Company has no finance leases as of March 31, 2026. Many of the Company’s facility leases include both lease (e.g., fixed payments including rent) and non-lease components (e.g., common-area or other maintenance costs). For vehicles, the Company has elected the practical expedient to group lease and non-lease components.

Most facility leases include one or more options to renew. The exercise of lease renewal options is typically at the Company’s sole discretion, therefore, the majority of renewals to extend the lease terms are not included in the Right of Use (“ROU”) assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates renewal options and when they are reasonably certain of exercise, the renewal period is included in the lease term.

As most of the Company’s leases do not provide an implicit rate, the Company uses a collateralized incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments.

Total operating lease expense for the three months ended March 31, 2026 and March 31, 2025 was $6.4 million and $5.9 million, respectively, which includes $0.1 million in related party operating lease expense.

Supplemental balance sheet information related to operating leases were as follows:


Dollars in thousands, except lease term and discount rate	March 31, 2026			December 31, 2025
ROU assets	$	137,197		$	140,568

Current lease liabilities	13,932			14,019
Non-current lease liabilities	160,116			163,059
Total lease liabilities	$	174,048		$	177,078

Weighted average remaining lease term (in years):
Leased facilities	15.6 years			15.7 years
Leased vehicles	2.8 years			2.7 years
Leased equipment	2.8 years			2.9 years

Weighted average discount rate:
Leased facilities	5.4		%	5.4		%
Leased vehicles	3.1		%	3.2		%
Leased equipment	6.6		%	6.9		%

Supplemental cash flow information related to leases for the three months ended March 31, 2026 and 2025 were as follows:


Dollars in thousands	March 31, 2026		March 31, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,660	$	5,890

ROU assets obtained in exchange for lease liabilities, net of modifications:
Operating leases	$	232	$	958

Future minimum lease payments under operating leases at March 31, 2026 were as follows:


Dollars in thousands	Related Parties		Third Parties		Total
Remainder of 2026	$	222	$	13,223	$	13,445
2027	296		21,784		22,080
2028	296		19,053		19,349
2029	246		18,766		19,012
2030	—		18,261		18,261
2031	—		17,826		17,826
Thereafter	—		148,993		148,993
Total minimum lease payments	$	1,060	$	257,906	$	258,966
Less: Imputed interest					84,918
Total lease liabilities					174,048
Less: Current lease liabilities					13,932
Long-term lease liabilities					160,116

There were no future minimum lease payments under finance leases at March 31, 2026.

Related Party Leases

The Company leases one of its manufacturing facilities in Plainsboro, New Jersey, from a general partnership that is 50% owned by a principal stockholder of the Company. The term of the current lease agreement is through October 31, 2029 at an annual rate of approximately $0.3 million. The current lease agreement also provides (i) a 5-year renewal option for the Company to extend the lease from November 1, 2029 through October 31, 2034 at the fair market rental rate of the premises, and (ii) another 5-year renewal option to extend the lease from November 1, 2034 through October 31, 2039 at the fair market rental rate of the premises.