LEASES

12 Months Ended

Dec. 31, 2021

LEASES

LEASES

10. LEASES

The Company has operating leases for office space, manufacturing facilities and equipment, computer equipment and automobiles. The Company did not have any finance leases in 2021 or 2020. Many leases include one or more options to renew, some of which include options to extend the leases for a long-term period, and some leases include options to terminate the leases within 30 days. In certain of the Company's lease agreements, the rental payments are adjusted periodically to reflect actual charges incurred for capital area maintenance, utilities, inflation and/or changes in other indexes.

For the years ended December 31, 2021 and 2020, the components of operating lease expense were as follows (in thousands):

	December 31,			December 31,
	2021			2020
Fixed operating lease expense	$	5,105	$	4,548
Variable operating lease expense	$	707	$	547
Short-term lease expense	$	237	$	234

Supplemental cash flow information related to the Company’s operating leases for the years ended December 31, 2021 and 2020 are as follows (in thousands):

	December 31,		December 31,
	2021		2020
Cash paid for amounts included in the measurement of operating leases	$	5,321	$	4,601
Right of use ("ROU") assets obtained in exchange for operating lease obligations	$	2,482	$	3,626
ROU assets obtained in acquisitions (Note 2)	$	1,005	$	2,735

The following table presents weighted average remaining lease term and discount rates related to the Company’s operating leases as of December 31, 2021 and 2020:

	December 31,
	2021			2020
Weighted average remaining lease term (in years)		6.41			6.83
Weighted average discount rate		2.28	%		2.25	%

The following table presents the maturity of the Company’s operating lease liabilities as of December 31, 2021 (in thousands):

2022	$	4,846
2023		3,537
2024		2,690
2025		2,149
2026		1,123
Thereafter		4,178
Total undiscounted cash flows	$	18,523
Less: present value discount		(1,199)
Total lease liabilities	$	17,324

As of December 31, 2021, the Company has entered into leases for building renewal and expansion, with future minimum lease payments of $13,700 that have not yet commenced.

The Company leases certain facilities from companies for which a member of management is a part owner. In connection with such leases, the Company made payments to the lessor of $700 and $500 during the years ended December 31, 2021 and 2020, respectively. Future minimum lease payments under these leases as of December 31, 2021 are $8,200.