Legal. We are a party to a number of lawsuits, claims and governmental proceedings that are ordinary, routine matters incidental to our business. In addition, in the ordinary course of business, we periodically have disputes with dealers and customers. We do not expect the outcomes of these matters to have, either individually or in the aggregate, a material adverse effect on our financial position or results of operations.

Performance Guarantee Obligations. As of March 31, 2023, we recorded $3.1 million related to our guarantee of certain specified minimum solar energy production output under our leases and loans, of which $1.8 million is recorded in other current liabilities and $1.3 million is recorded in other long-term liabilities in the unaudited condensed consolidated balance sheet. As of December 31, 2022, we recorded $4.8 million related to these guarantees, of which $2.5 million is recorded in other current liabilities and $2.3 million is recorded in other long-term liabilities in the unaudited condensed consolidated balance sheet. The changes in our aggregate performance guarantee obligations are as follows:



	Three Months Ended March 31,
	2023		2022
	(in thousands)
Balance at beginning of period	$	4,845	$	5,293
Accruals	1,015		329

Settlements	(2,731)		(3,148)
Balance at end of period	$	3,129	$	2,474

Operating and Finance Leases. We lease real estate and certain office equipment under operating leases and vehicles and certain other office equipment under finance leases. The following table presents the detail of lease expense as recorded in general and administrative expense in the unaudited condensed consolidated statements of operations:


	Three Months Ended March 31,
	2023		2022
	(in thousands)
Operating lease expense	$	692	$	692
Finance lease expense:
Amortization expense	230		175
Interest on lease liabilities	18		14
Short-term lease expense	27		27
Variable lease expense	233		255

Total	$	1,200	$	1,163

The following table presents the detail of right-of-use assets and lease liabilities as recorded in other assets and other current liabilities/other long-term liabilities, respectively, in the unaudited condensed consolidated balance sheets:


	As of March 31, 2023		As of December 31, 2022


	(in thousands)
Right-of-use assets:
Operating leases	$	14,194	$	14,706
Finance leases	2,329		2,476
Total right-of-use assets	$	16,523	$	17,182

Current lease liabilities:
Operating leases	$	2,487	$	2,451
Finance leases	759		796
Long-term leases liabilities:
Operating leases	15,131		15,751
Finance leases	851		957
Total lease liabilities	$	19,228	$	19,955


	Three Months Ended March 31,
	2023		2022
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases (1)	$	764	$	382
Operating cash flows from finance leases	$	18	$	14
Financing cash flows from finance leases	$	211	$	199
Right-of-use assets obtained in exchange for lease obligations:

Finance leases	$	83	$	287


	As of March 31, 2023		As of December 31, 2022


Weighted average remaining lease term (years):
Operating leases	6.37		6.60
Finance leases	2.68		2.86
Weighted average discount rate:
Operating leases	3.95	%	3.95	%
Finance leases	4.52	%	4.37	%


	Operating Leases		Finance Leases
	(in thousands)
Remaining 2023	$	2,386	$	648
2024	3,118		637
2025	3,168		320
2026	3,236		97
2027	3,304		3
2028 and thereafter	5,485		—
Total	20,697		1,705
Amount representing interest	(2,458)		(95)
Amount representing leasehold incentives	(621)		—
Present value of future payments	17,618		1,610
Current portion of lease liability	(2,487)		(759)
Long-term portion of lease liability	$	15,131	$	851

Guarantees or Indemnifications. We enter into contracts that include indemnifications and guarantee provisions. In general, we enter into contracts with indemnities for matters such as breaches of representations and warranties and covenants contained in the contract and/or against certain specified liabilities. Examples of these contracts include dealer agreements, debt agreements, asset purchases and sales agreements, service agreements and procurement agreements. We are unable to estimate our maximum potential exposure under these agreements until an event triggering payment occurs.

Dealer Commitments. As of March 31, 2023 and December 31, 2022, the net unamortized balance of payments to dealers for exclusivity and other similar arrangements was $144.6 million and $121.3 million, respectively. Under these agreements, we paid $24.6 million and $13.2 million during the three months ended March 31, 2023 and 2022, respectively. We could be obligated to make maximum payments, excluding additional amounts payable on a per watt basis if even higher thresholds are met, as follows:


	Dealer Commitments
	(in thousands)
Remaining 2023	$	43,187
2024	74,399
2025	58,986
2026	36,904
2027	30,000
2028 and thereafter	—
Total	$	243,476

Purchase Commitments. In December 2021, we amended an agreement with a supplier in which we agreed to purchase at least 1,420 megawatt hours of solar energy systems, energy storage systems and accessories through December 2023. The

amendment does not contain specific dollar amounts or thresholds; however, we estimate these remaining purchase commitments to be approximately $457.1 million. During the three months ended March 31, 2023 and 2022, we purchased $78.4 million and $50.6 million, respectively, under this agreement.

Information Technology Commitments. We have certain long-term contractual commitments related to information technology software services and licenses. Future commitments as of March 31, 2023 were as follows:


	Information Technology Commitments
	(in thousands)
Remaining 2023	$	27,796
2024	6,012
2025	85
2026	—
2027	—
2028 and thereafter	—
Total	$	33,893