The Company has certain property leases for facilities of the Company’s subsidiaries. Most of these leases are accounted for as finance leases except for facilities leased by AEC and a plane hangar leased by Systima, which are accounted for as operating leases. Total lease payments amounted to $3.8 million and $2.2 million for the three months ended June 30, 2026 and 2025 respectively. Total lease payments amounted to $7.2 million and $6.4 million for the six months ended June 30, 2026 and 2025 respectively.

On a consolidated basis, lease activity for the three and six months ended June 30, 2026 and 2025 were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in thousands)
Finance lease expense
Amortization of ROU assets	$	1,914	$	1,131	$	3,743	$	3,424
Interest on lease liabilities		1,893		1,095		3,731		3,363
Operating lease expense		828		386		1,512		1,065
Total	$	4,635	$	2,612	$	8,986	$	7,852

Amortization of ROU assets are included in the depreciation and amortization expense line of the accompanying condensed consolidated statements of income.

On a consolidated basis, supplemental cash flow information for the six months ended June 30, 2026 and 2025 were as follows:


	Six Months Ended June 30,
	2026			2025
Cash paid for amounts included in the measurement of lease liabilities	(in thousands except percent and year)
Operating cash flows from finance leases	$	3,583		$	3,371
Financing cash flows from finance leases	$	2,148		$	1,896
Operating cash flows from operating leases	$	1,454		$	1,083
ROU assets obtained in exchange for new operating lease liabilities	$	10,419		$	1,342
Weighted-average remaining lease term in years for finance leases		15.23			13.47
Weighted-average remaining lease term in years for operating leases		10.77			5.64
Weighted-average discount rate for finance leases		7.29	%		8.37	%
Weighted-average discount rate for operating leases		7.24	%		9.60	%