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Leases

9 Months Ended

Sep. 30, 2022

The Company determines if an arrangement is a lease at its inception. Operating leases are included in “Operating lease right-of-use assets - net,” “Other accrued liabilities,” and “Long-term operating lease liabilities” within the Condensed Consolidated Balance Sheets. Finance leases are included within “Property, plant, and equipment - net,” “Current maturities of long-term debt,” and “Long-term debt” within the Condensed Consolidated Balance Sheets.

The Company has operating and finance leases for manufacturing facilities, corporate offices, sales offices, vehicles, and certain equipment. As of September 30, 2022, the Company’s leases had remaining lease terms of 2 to 12 years, some of which include options to extend the leases for up to 12 years, and some of which include options to terminate the leases within 1 year.

The balance sheet components of the Company’s leases were as follows as of September 30, 2022 and December 31, 2021:


	September 30, 2022		December 31, 2021
Operating leases
Operating lease right-of-use assets	$	12,701	$	15,131
Other accrued liabilities	$	2,700	$	2,852
Long-term operating lease liabilities	10,001		12,279
Total operating lease liabilities	$	12,701	$	15,131
Finance leases
Property, plant, and equipment	$	1,250	$	1,162
Accumulated amortization	(1,094)		(1,011)
Property, plant, and equipment - net	$	156	$	151
Current maturities of long-term debt	$	82	$	98
Long-term debt	74		53
Total finance lease liabilities	$	156	$	151

The components of lease expense within the Company’s Condensed Consolidated Statements of Operations were as follows for the three and nine months ended September 30, 2022 and 2021:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Finance lease cost:
Amortization of finance leases	$	44	$	50	$	119	$	152
Interest on lease liabilities	7		19		20		61
Operating lease cost	706		706		2,188		2,042
Sublease income	(50)		(50)		(150)		(150)
Total lease cost	$	707	$	725	$	2,177	$	2,105

The cash flow components of the Company’s leases were as follows for the nine months ended September 30, 2022 and 2021:


	Nine Months Ended September 30,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows related to operating leases	$	(2,568)	$	(2,462)

Financing cash flows related to finance leases	(110)		(166)
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	—	$	377

The weighted-average remaining lease term (in years) and discount rate related to the operating leases were as follows as of the dates presented:


	September 30,
	2022		2021
Operating lease weighted-average remaining lease term	5		7
Operating lease weighted-average discount rate	5.2	%	5.2	%
Finance lease weighted-average remaining lease term	1		1
Finance lease weighted-average discount rate	4	%	4.2	%

As of September 30, 2022, estimated annual maturities of lease liabilities remaining for the year ending December 31, 2022 and thereafter were as follows:


	Operating Leases		Finance Leases
Remainder of 2022	$	845	$	32
2023	3,234		77
2024	2,900		41
2025	2,351		20
2026	2,147		9
2027 and thereafter	3,092		—
Total undiscounted lease payments	14,569		179
Interest	(1,868)		(23)
Total	$	12,701	$	156

Leases

The balance sheet components of the Company’s leases were as follows as of September 30, 2022 and December 31, 2021:


	September 30, 2022		December 31, 2021
Operating leases
Operating lease right-of-use assets	$	12,701	$	15,131
Other accrued liabilities	$	2,700	$	2,852
Long-term operating lease liabilities	10,001		12,279
Total operating lease liabilities	$	12,701	$	15,131
Finance leases
Property, plant, and equipment	$	1,250	$	1,162
Accumulated amortization	(1,094)		(1,011)
Property, plant, and equipment - net	$	156	$	151
Current maturities of long-term debt	$	82	$	98
Long-term debt	74		53
Total finance lease liabilities	$	156	$	151

The components of lease expense within the Company’s Condensed Consolidated Statements of Operations were as follows for the three and nine months ended September 30, 2022 and 2021:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Finance lease cost:
Amortization of finance leases	$	44	$	50	$	119	$	152
Interest on lease liabilities	7		19		20		61
Operating lease cost	706		706		2,188		2,042
Sublease income	(50)		(50)		(150)		(150)
Total lease cost	$	707	$	725	$	2,177	$	2,105

The cash flow components of the Company’s leases were as follows for the nine months ended September 30, 2022 and 2021:


	Nine Months Ended September 30,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows related to operating leases	$	(2,568)	$	(2,462)

Financing cash flows related to finance leases	(110)		(166)
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	—	$	377

The weighted-average remaining lease term (in years) and discount rate related to the operating leases were as follows as of the dates presented:


	September 30,
	2022		2021
Operating lease weighted-average remaining lease term	5		7
Operating lease weighted-average discount rate	5.2	%	5.2	%
Finance lease weighted-average remaining lease term	1		1
Finance lease weighted-average discount rate	4	%	4.2	%

As of September 30, 2022, estimated annual maturities of lease liabilities remaining for the year ending December 31, 2022 and thereafter were as follows:


	Operating Leases		Finance Leases
Remainder of 2022	$	845	$	32
2023	3,234		77
2024	2,900		41
2025	2,351		20
2026	2,147		9
2027 and thereafter	3,092		—
Total undiscounted lease payments	14,569		179
Interest	(1,868)		(23)
Total	$	12,701	$	156