Leases

3 Months Ended

Mar. 31, 2021

9. Leases

We have operating and finance lease obligations resulting from the lease of land and buildings that comprise our corporate headquarters and various manufacturing facilities; leases related to additional manufacturing, office, and warehouse space; leases on Company vehicles; and leases on a variety of office and other equipment.

On January 6, 2021 we executed a modification to extend the lease of our headquarters location in Kennesaw, Georgia. This modification resulted in an increase in the present value of future lease obligations and corresponding right-of-use asset of $23.3 million, using a discount rate of 6.41%.

Consolidated balance sheet information related to leases is as follows (in thousands, except lease term and discount rate):


Operating leases:		March 31, 2021		December 31, 2020
Operating lease right-of-use assets	$	48,859	$	28,242
Accumulated amortization		(9,786)		(9,671)
Operating lease right-of-use assets, net	$	39,073	$	18,571

Current maturities of operating leases	$	1,548	$	5,763
Non-current maturities of operating lease		38,441		14,034
Total operating lease liabilities	$	39,989	$	19,797

Finance leases:
Property and equipment, at cost	$	7,208	$	7,620
Accumulated amortization		(1,897)		(1,905)
Property and equipment, net	$	5,311	$	5,715

Current maturities of finance leases	$	578	$	614
Non-current maturities of finance leases		4,930		5,300
Total finance lease liabilities	$	5,508	$	5,914

Weighted average remaining lease term (in years):
Operating leases		13.2		5.1
Finance leases		9.5		9.8

Weighted average discount rate:
Operating leases		5.9%		5.2%
Finance leases		2.0%		2.0%

Current maturities of finance leases are included as a component of Other current liabilities and non-current maturities of finance leases are included as a component of Other long-term liabilities on our Condensed Consolidated Balance Sheets. A summary of lease expenses for our finance and operating leases included in General, Administrative, and Marketing Expenses on our Condensed Consolidated Statements of Operations and Comprehensive Loss are as follows (in thousands):


	Three Months Ended
	March 31,
		2021		2020
Amortization of property and equipment	$	154	$	162
Interest expense on finance leases		29		29
Total finance lease expense		183		191
Operating lease expense		1,758		1,748
Sublease income		(124)		(226)
Total lease expense	$	1,817	$	1,713

A summary of our cash flow information related to leases is as follows (in thousands):


		Three Months Ended		Three Months Ended
Cash paid for amounts included in the measurement of lease liabilities:		March 31, 2021		March 31, 2020
Operating cash flows for operating leases	$	1,500	$	29
Financing cash flows for finance leases		144		1,745
Operating cash flows for finance leases		28		147

Future minimum lease payments and sublease rental income are as follows (in thousands):


	Finance		Operating		Sublease
	Leases		Leases		Income
Remainder of 2021	$	512	$	2,650	$	275
2022		642		4,653		305
2023		641		5,268		--
2024		637		4,973		--
2025		618		4,160		--
Thereafter		2,999		38,922		--
Total minimum lease payments	$	6,049	$	60,626	$	580
Less amount representing interest		(541)		(20,637)
Present value of net minimum lease payments		5,508		39,989
Less current maturities		(578)		(1,548)
Lease liabilities, less current maturities	$	4,930	$	38,441