LEASES

12 Months Ended

Dec. 31, 2023

LEASES

LEASES

10. LEASES

The Company has operating leases for office space, manufacturing facilities and equipment, computer equipment and automobiles. 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.

The Company’s finance lease obligations relate to a manufacturing facility. As of December 31, 2023, finance lease assets of $8,208 are included in property, plant, and equipment, net, finance lease obligations of $412 are included in accrued liabilities, and $8,607 are included in long-term debt on the consolidated balance sheet.

For the years ended December 31, 2023 and 2022, the components of operating lease expense were as follows (in thousands):

	December 31,			December 31,
	2023			2022
Fixed operating lease expense	$	6,748	$	5,507
Variable operating lease expense		646		187
Short-term lease expense		1,375		1,246
	$	8,769	$	6,940

Supplemental cash flow information related to the Company’s operating and finance leases for the years ended December 31, 2023 and 2022 are as follows (in thousands):

	December 31,		December 31,
	2023		2022
Cash paid for operating leases	$	5,765	$	5,191
Cash paid for interest on finance lease obligations	$	376	$	736
Assets acquired under operating leases	$	6,517	$	9,592
Assets acquired under finance leases	$	—	$	9,471
Operating lease assets obtained in acquisitions	$	224	$	5,053

The following table presents weighted average remaining lease term and discount rates related to the Company’s operating leases as of December 31, 2023 and 2022:

	December 31,
	2023			2022
Weighted average remaining lease term (in years)		6.00			6.75
Weighted average discount rate		4.25	%		3.66	%

The following table presents the maturity of the Company’s operating and finance lease liabilities as of December 31, 2023 (in thousands):

	Operating Leases		Finance Leases
2024	$	6,085	$	815
2025		4,965		831
2026		4,365		848
2027		3,726		867
2028		2,818		886
Thereafter		5,861		7,883
Total undiscounted cash flows	$	27,820	$	12,130
Less: present value discount		(3,146)		(3,111)
Total lease liabilities	$	24,674	$	9,019

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 $1,631 and $1,529 during the years ended December 31, 2023 and 2022, respectively. Future minimum lease payments under these leases as of December 31, 2023 are $12,914.