Leases |
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 located 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%. On June 1, 2021 we began occupancy of the newly constructed addition to our leased international headquarters located in Hechingen, Germany. This lease resulted in an increase in the present value of future lease obligations and corresponding right-of-use asset of $9.8 million, using a discount rate of 5.46%. Information related to leases included in the Condensed Consolidated Balance Sheets is as follows (in thousands, except lease term and discount rate): | | | | | | | | | | | | Operating leases: | September 30, 2022 | | December 31, 2021 | Operating lease right-of-use assets | $ | 55,405 | | | $ | 58,097 | | Accumulated amortization | (14,085) | | | (12,383) | | Operating lease right-of-use assets, net | $ | 41,320 | | | $ | 45,714 | | | | | | Current maturities of operating leases | $ | 3,061 | | | $ | 3,149 | | Non-current maturities of operating leases | 40,915 | | | 44,869 | | Total operating lease liabilities | $ | 43,976 | | | $ | 48,018 | | | | | | Finance leases: | | | | Property and equipment, at cost | $ | 5,861 | | | $ | 6,759 | | Accumulated amortization | (2,166) | | | (2,105) | | Property and equipment, net | $ | 3,695 | | | $ | 4,654 | | | | | | Current maturities of finance leases | $ | 469 | | | $ | 528 | | Non-current maturities of finance leases | 3,450 | | | 4,374 | | Total finance lease liabilities | $ | 3,919 | | | $ | 4,902 | | | | | | Weighted average remaining lease term (in years): | | | | Operating leases | 12.2 | | 12.5 | Finance leases | 8.1 | | 8.8 | | | | | Weighted average discount rate: | | | | Operating leases | 5.9% | | 5.8% | Finance leases | 2.1% | | 2.0% |
Current maturities of finance leases are included as a component of Other current 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) Income is as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2022 | | 2021 | | 2022 | | 2021 | Amortization of property and equipment | $ | 127 | | $ | 190 | | $ | 395 | | $ | 500 | Interest expense on finance leases | 22 | | 27 | | 69 | | 85 | Total finance lease expense | 149 | | 217 | | 464 | | 585 | Operating lease expense | 1,853 | | 1,989 | | 5,656 | | 5,566 | Sublease income | (92) | | | (92) | | | (275) | | | (308) | | Total lease expense | $ | 1,910 | | $ | 2,114 | | $ | 5,845 | | $ | 5,843 |
A summary of our cash flow information related to leases is as follows (in thousands): | | | | | | | | | | | | | Nine Months Ended September 30, | Cash paid for amounts included in the measurement of lease liabilities: | 2022 | | 2021 | Operating cash flows for operating leases | $ | 4,939 | | $ | 4,536 | Financing cash flows for finance leases | 346 | | 446 | Operating cash flows for finance leases | 62 | | 82 |
Future minimum lease payments and sublease rental income are as follows (in thousands): | | | | | | | | | | | | | | | | | | | Finance Leases | | Operating Leases | | Sublease Income | Remainder of 2022 | $ | 120 | | $ | 660 | | $ | 31 | 2023 | 549 | | 5,624 | | — | 2024 | 545 | | 6,252 | | — | 2025 | 525 | | 5,173 | | — | 2026 | 508 | | 4,719 | | — | Thereafter | 2,000 | | 40,986 | | — | Total minimum lease payments | $ | 4,247 | | $ | 63,414 | | $ | 31 | Less amount representing interest | (328) | | | (19,438) | | | | Present value of net minimum lease payments | 3,919 | | 43,976 | | | Less current maturities | (469) | | | (3,061) | | | | Lease liabilities, less current maturities | $ | 3,450 | | $ | 40,915 | | |
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