Leases

6 Months Ended

Jun. 30, 2026

Note 5. Leases

The Company has real property operating leases for office and manufacturing space. Operating leases for the Company’s personal property consist of leases for office equipment, vehicles, forklifts and storage tanks for bulk gases. The Company recognizes a right-of-use (ROU) asset and a lease liability for operating leases based on the net present value of future minimum lease payments. Lease expense for the Company’s operating leases is recognized on a straight-line basis over the lease term, including renewal periods that are considered reasonably certain. The Company has not elected to recognize ROU assets or lease liabilities for leases with a term of twelve months or less.

The Company has finance leases for equipment used throughout its office, manufacturing facilities and vehicles used by employees. The Company recognizes an ROU asset and a lease liability for finance leases based on the net present value of future minimum lease payments. Lease expense for the Company’s finance leases are comprised of the amortization of the ROU asset and interest expense recognized based on the effective interest method.

Variable lease expense is related to certain of the Company’s real property leases and personal property leases, and it generally consists of property tax and insurance components that are for the benefit of the lessor (real property leases) and variable overage fees (personal property leases) that are remitted as part of the Company’s lease payments.

During the three and six months ended June 30, 2026, the Company recorded zero and $1,169 of lease impairment expense associated with the Plan. Refer to Note 19 – Restructuring, in the Notes to the Condensed Consolidated Financial Statements for additional information related to lease impairment expense.

The components of lease expense were as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
Finance lease cost:
Amortization of finance lease assets	$	456	$	181	$	746	$	314
Interest on finance lease liabilities		110		18		173		27
Total finance lease expense		566		199		919		341
Operating lease expense		1,575		1,321		3,141		2,647
Short-term lease expense		184		326		380		477
Variable lease expense		93		49		114		164
Lease income ⁽¹⁾		(379)		(547)		(924)		(1,094)
Total lease expense (income)	$	2,039	$	1,348	$	3,630	$	2,535

(1)	The Company subleased a portion of its Hazel Park, MI and Fond Du Lac, WI facilities during the three and six months ended June 30, 2026 and 2025.

Supplemental information related to leases was as follows:


	Six Months Ended
	June 30,
	2026			2025
Cash paid for amounts included in the measurement of lease liabilities for finance leases:
Operating cash flows	$	173		$	21
Financing cash flows	$	1,227		$	725

Cash paid for amounts included in the measurement of lease liabilities for operating leases:
Operating cash flows	$	3,876		$	3,074

Right-of-use assets obtained in exchange for recorded lease obligations:
Operating leases	$	52		$	2,798
Finance leases	$	8,150		$	911