Leases

9 Months Ended

Sep. 30, 2023

10.

LEASES

The Company leases office space, storage warehouses, training and manufacturing facilities, and certain plant equipment under various operating leases. The Company’s operating leases have remaining lease terms of 1 year to 6 years. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.

For the nine months ended September 30, 2023, and September 30, 2022, total operating lease expense was $6.1 million and $6.3 million, respectively. The weighted average remaining lease term at September 30, 2023 and December 31, 2022 was 4.6 years and 5.2 years, respectively. The weighted average discount rate at September 30, 2023 and December 31, 2022 was 2.25% and 2.10%, respectively.

The following table includes supplemental cash flow information for the nine months ended September 30, 2023, and September 30, 2022, and supplemental balance sheet information at September 30, 2023 and December 31, 2022 related to operating leases (in thousands):


	Nine months Ended September 30,
Supplemental cash flow information	2023		2022
Cash paid for amounts included in the measurement of operating lease liabilities	$	6,236	$	6,532
Operating ROU assets obtained in exchange for lease liabilities	$	1,882	$	7,332



Supplemental balance sheet information	September 30, 2023		December 31, 2022
Operating lease ROU assets	$	27,286	$	30,991
Operating lease liabilities:
Accrued expenses and other current liabilities	$	7,409	$	7,488
Operating lease liabilities		20,197		23,974

Total operating lease liabilities	$	27,606	$	31,462

The following table summarizes maturities of operating lease liabilities at September 30, 2023 (in thousands):


Maturities of operating lease liabilities
2023	$	1,893
2024		7,386
2025		5,552
2026		4,851
2027		4,446
Thereafter		4,845

Total lease payments		28,973
Less imputed interest		(1,367	)

Total operating lease liabilities	$	27,606