Leases

12 Months Ended

Dec. 31, 2022

Leases The Company does not own any real estate. The majority of the Company’s lease liability consists of the Company’s international office spaces and warehouses, all of which are classified as operating leases. The Company’s finance leases relate to leased equipment such as office and warehouse equipment. The finance lease balances are not material and are included in property and equipment, other accrued expenses, and other long-term liabilities of the Consolidated Balance Sheets.

Lease terms include the non-cancellable portion of the underlying leases along with any reasonably certain lease periods associated with available renewal periods, termination options and purchase options. The Company's leases do not contain significant restrictive provisions nor residual value guarantees.

Operating and finance lease right-of-use (“ROU”) liabilities are recognized at the lease commencement date based on the present value of the fixed lease payments using the Company’s incremental borrowing rates for its population of leases. Related operating and finance lease ROU assets are recognized based on the initial present value of the fixed lease payments, reduced by cash payments received from landlords as lease incentives, plus any prepaid rent and other direct costs from executing the leases. The interest expense amortization component of the finance lease ROU liabilities is recorded within interest expense on the Consolidated Statements of Comprehensive Income (Loss). ROU assets are tested for impairment in the same manner as long-lived assets.

Operating ROU assets and liabilities as of December 31, 2022 and December 31, 2021 comprises the following:


(in thousands)
Assets	Balance Sheet Classification	December 31, 2022		December 31, 2021
Operating lease assets	Right-of-use assets, net	$	15,637	$	14,992



Liabilities
Operating	Lease liabilities, current	$	4,958	$	3,712
Operating	Lease liabilities, non-current	$	12,689	$	12,781



Total lease liabilities		$	17,647	$	16,493

Total lease cost for the years ended December 31, 2022 and December 31, 2021 are summarized in the table below. The variable lease costs were not included in the measurement of the lease liabilities. These primarily include property taxes, property insurance, and common area maintenance expenses.


(in thousands)	Statement of Operations Classification	December 31, 2022		December 31, 2021
Operating lease cost
Operating lease cost	Cost of sales	$	835	$	811

Operating lease cost	Selling and marketing, general and administrative	4,139		2,535
		4,974		3,346
Short-term lease cost

Short-term lease cost	Selling and marketing, general and administrative	1,662		879
		1,662		879
Variable lease cost
Variable lease cost	Cost of sales	—		236

Variable lease cost	Selling and marketing, general and administrative	—		270
		—		506

Total operating lease cost		$	6,636	$	4,731

The following table summarizes future operating lease payments as of December 31, 2022:


(in thousands)	Future Minimum Payments
2023	$	5,407
2024	4,532
2025	1,729
2026	1,372
2027	1,096
Thereafter	5,145
Total	19,281
Less: Imputed Interest	(1,634)
Present value of net lease payments	$	17,647

The following table includes supplemental lease information:


Supplemental Cash Flow Information (dollars in thousands)	December 31, 2022			December 31, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	2,981		$	3,041




Lease liabilities arising from new ROU assets
Operating leases	$	4,476		$	5,707


Weighted average remaining lease term (in years)
Operating leases	6.0			6.3


Weighted average discount rate
Operating leases	2.98		%	2.75		%