8. LEASES

The Company leases its distribution centers and manufacturing facilities from third parties under various non-cancelable lease agreements expiring at various dates through 2038. Also, the Company leases some property, plant and equipment under finance leases. Certain leases contain escalation provisions and/or renewal options, giving the Company the right to extend the leases by up to 20 years. However, these options are generally not reflected in the calculation of the ROU assets and lease liabilities due to uncertainty surrounding the likelihood of renewal. The Company recognizes operating lease costs over the respective lease periods, including short-term and month-to-month leases. The Company incurred operating lease costs of $2,244 and $2,384 during the three months ended March 31, 2026 and 2025, respectively. These costs are included primarily within SG&A in the condensed consolidated statements of operations.

The Company has operating subleases and logistics agreements which have been accounted for by reference to the underlying asset subject to the lease, primarily as an offset to rent expense, primarily within SG&A. For the three months ended March 31, 2026 and 2025, the Company recorded sublease and logistics income of $1,347 and $1,188, respectively. 

Total ROU assets, finance lease assets, and lease liabilities were as follows:

The aggregate future minimum lease payments under long-term non-cancelable operating and finance leases with remaining terms greater than one year as of  March 31, 2026 are as follows: