The Company is a lessee under leases of manufacturing facilities, office spaces, machinery, certain office equipment and vehicles. A majority of the Company’s leases are operating leases with remaining lease terms between one month and 13 years. Finance leases are immaterial to the Company’s consolidated financial statements. The Company determines if an arrangement qualifies as a lease and what type of lease it is at inception. The Company elected the package of practical expedients permitted under the transition guidance within the new lease standard, which among other things, allowed it to continue to account for existing leases based on the historical lease classification. The Company also elected the practical expedients to combine lease and non-lease components and to exclude right of use assets and lease liabilities for leases with an initial term of 12 months or less from the balance sheet.

Some of the lease agreements the Company enters into include Company options to either extend and/or early terminate the lease, the costs of which are included in the Company’s operating lease liabilities to the extent that such options are reasonably certain of being exercised. Leases with renewal options allow the Company to extend the lease term typically between 1 and 5 years per option, some of its leases have multiple options to extend. When determining if a renewal option is reasonably certain of being exercised, the Company considers several economic factors, including but not limited to, the significance of leasehold improvements incurred on the property, whether the asset is difficult to replace, underlying contractual obligations, or specific characteristics unique to that particular lease that would make it reasonably certain that the Company would exercise such options.

As of December 31, 2023 and 2022, operating lease right of use assets were $115.5 million and $125.0 million, respectively and operating lease liabilities were $132.2 million and $138.3 million, respectively. The addition of FlexBiosys and Metenova in 2023 added 43,833 square feet to our leased properties and as a result of that and the expansion in Toulouse, France, the operating right of use asset balance increased $4.0 million in 2023, as compared to 2022. However, the consolidated right of use assets balance decreased due to the normal amortization of existing leases during 2023.

The maturities of the Company’s operating lease liabilities as of December 31, 2023 are as follows (amounts in thousands):


As of December 31, 2023	Amount
2024	$	22,585
2025		25,645
2026		25,406
2027		23,944
2028		24,382
2029 and thereafter		79,435
Total future minimum lease payments(1)		201,397
Less lease incentives		(9,765	)
Less amount of lease payment representing interest		(32,595	)
Total operating lease liabilities	$	159,037

(1)

The future minimum lease payments include obligations for leases not yet commenced of $26.8 million for manufacturing, office and warehouse facilities. These leases have terms of between 5 and 10 years and commence during the first quarter of 2024.

Total operating lease liabilities included on the Company’s consolidated balance sheets are as follows (amounts in thousands):


	December 31,
	2023		2022
Operating lease liability	$	5,631	$	6,957
Operating lease liability, long-term		126,578		131,389
Minimum operating lease payments	$	132,209	$	138,346

Lease expense for these leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. For the years ended December 31, 2023, 2022 and 2021, total lease cost is comprised of the following:


	For the Years Ended December 31,
Lease Cost	2023		2022		2021
	(Amounts in thousands)
Operating lease cost	$	20,981	$	17,833	$	9,838
Variable operating lease cost		4,075		11,317		7,118
Lease cost	$	25,056	$	29,150	$	16,956

The following information represents supplemental disclosure for the consolidated statements of cash flows related to operating leases (amounts in thousands):


	For the Years Ended December 31,
	2023			2022			2021
Operating lease cost	$	(17,862	)	$	(13,757	)	$	(8,863	)

Most of the leases do not provide implicit interest rates and therefore the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for the Company’s leases is determined based on lease term and currency in which the lease payments are made.

The weighted average remaining lease term and the weighted average discount rate used to measure the Company’s operating lease liabilities as of December 31, 2023, were:


Weighted average remaining lease term (years)	7.74
Weighted average discount rate	4.13	%