Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2026

Commitments and Contingencies Disclosure [Abstract]

Supplemental balance sheet information related to leases was as follows (in thousands):


	Line Item in the Company’s Consolidated Balance Sheet	June 30, 2026		December 31, 2025

Assets:
Operating lease right-of-use assets	Other non-current assets	$	143,712	$	146,755
Finance lease right-of-use assets	Other non-current assets	6,881		$	6,881
		$	150,593	$	153,636
Liabilities
Operating lease liabilities - current	Other current liabilities	$	35,568	$	37,854
Operating lease liabilities - non-current	Other non-current liabilities	124,225		126,084
Finance lease liabilities - current	Other current liabilities	6,841		47
Finance lease liabilities - non-current	Other non-current liabilities	—		6,820
		$	166,634	$	170,805

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows (in thousands):


	Six months ended June 30, 2026		Six months ended June 30, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	25,628	$	27,400
Operating cash flows from finance leases	334		336
Financing cash flows from finance leases	26		23
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	15,813	$	2,205

Altor Sale Leaseback

On January 23, 2026, Altor completed a sale leaseback transaction for its manufacturing facilities in Bloomsburg, Pennsylvania; New Albany, Indiana; and El Dorado Springs, Missouri (the “Properties”). Under the purchase and sale agreement, Altor sold the land, buildings and certain integrated fixtures to the buyer/lessor for total consideration of $11.75 million and recognized a gain on the transaction of $10.2 million in other operating income (expense) from continuing operations in the six months ended June 30, 2026. Concurrently with the execution of the purchase and sale agreement, Altor entered into a 20 year triple-net master lease to lease back all three Properties.

Accounting for the transaction is governed by ASC 842, Leases. Under ASC 842, a sale leaseback is accounted for as a sale and a lease only if the transfer of the Properties qualifies as a sale in accordance with ASC 606, including that control of the Properties transferred to the buyer/lessor and the leaseback does not include (among other things) a repurchase option or other provisions that would prevent the transfer from being accounted for as a sale. When a sale is achieved, the seller-lessee derecognizes the carrying amount of the Properties, recognizes any

resulting gain or loss, and recognizes a right-of-use asset and lease liability for the leaseback measured in accordance with ASC 842. Altor determined that the sale leaseback transaction qualified as a sale under ASC 606 and accordingly recognized a gain and recognized a right-of-use asset and lease liability for the leaseback.

For the leaseback, Altor will recognize lease expense generally on a straight-line basis over the lease term, and the related lease payments will be presented within operating cash flows. Because the lease is a triple-net lease, Altor is generally responsible for certain costs associated with the Properties, such as real estate taxes, insurance and maintenance; amounts paid for these items are generally excluded from the measurement of the lease liability when they represent non-lease components or variable payments, and are recognized in expense as incurred.

Exit Costs

Altor

Subsequent to the acquisition of Lifoam in October 2024, Altor determined that they would shut down four of their facilities that had geographic overlap with Lifoam facilities. During the three months ended March 31, 2025, Altor recorded approximately $0.6 million in exit costs related to the plant closures in selling general and administrative expense. The plant closures were finalized in the fourth quarter of 2025 and no additional expense was recorded in the three months ended June 30, 2026.

Arnold

During 2024, Arnold relocated two of its facilities located in Marengo, Illinois into one combined facility in Woodstock, Illinois. Arnold recorded $0.9 million in costs in selling, general and administrative expense in the three months ended March 31, 2025 related to the relocation of the two facilities. The exit from the Marengo facility was completed during 2025.

Maturities of Lease Liabilities

The maturities of lease liabilities at June 30, 2026 are as follows (in thousands):


	Operating		Finance		Total
2026 (excluding the six months ended June 30, 2026)	$	27,135	$	359	$	27,494
2027	49,190		7,040		56,230
2028	39,550		—		39,550
2029	29,780		—		29,780
2030	25,867		—		25,867
Thereafter	79,041		—		79,041
Total undiscounted lease payments	$	250,563	$	7,399	$	257,962
Less: Interest	90,770		558		91,328
Present value of lease liabilities	$	159,793	$	6,841	$	166,634

Lease Supplemental Balance Sheet Information Table

The weighted average remaining lease terms and discount rates for all of our operating leases were as follows:


Lease Term and Discount Rate	June 30, 2026		June 30, 2025
Weighted-average remaining lease term (years)
Operating Leases	6.57		5.96
Finance Leases	0.83		1.83
Weighted-average discount rate
Operating Leases	8.87	%	8.88	%
Finance Leases	9.90	%	9.90	%