v3.26.1
Leases
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases LEASES
The Company has operating leases with fixed payment terms for certain buildings and warehouses. The Company's leases have remaining lease terms of less than one year to ten years, some of which include options to extend the lease for five years. Operating leases are included in operating lease right-of-use ("ROU") assets, accrued other liabilities and other non-current liabilities in the Consolidated Balance Sheets. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease.
The Company used the applicable incremental borrowing rate at implementation 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. At each reporting period when there is a new lease initiated, the Company will utilize its incremental borrowing rate to perform lease classification tests on lease components and to measure ROU assets and lease liabilities.
The components of lease expense were as follows (in thousands):
Three months ended June 30,Six months ended
June 30,
2026202520262025
Operating lease cost$980 $511 $1,689 $1,012 
Short-term lease cost244 330 558 690 
Total net lease cost$1,224 $841 $2,247 $1,702 
Other supplemental balance sheet information related to leases was as follows (in thousands):
June 30, 2026December 31, 2025
Operating lease right-of-use assets$14,514 $14,494 
Current operating lease liabilities(A)
$2,119 $1,721 
Noncurrent operating lease liabilities(B)
13,027 13,113 
Total operating lease liabilities$15,146 $14,834 
(A)Current operating lease liabilities are included in accrued other liabilities in the Consolidated Balance Sheets.
(B)Noncurrent operating lease liabilities are included in other non-current liabilities in the Consolidated Balance Sheets.
During the six months ended June 30, 2026, the Company entered into a renewed lease related to the Matamoros production facility, which resulted in a right-of-use asset of $1,260,000 in exchange for new operating lease liabilities.