Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

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.

Information related to leases included in the Consolidated Balance Sheets was as follows (in thousands, except lease term and discount rate):

Operating leases:	December 31, 2023		December 31, 2022
Operating lease right-of-use assets, net	$	43,822	$	41,859
Current maturities of operating leases	$	3,395	$	3,308
Non-current maturities of operating leases	43,977		41,257
Total operating lease liabilities	$	47,372	$	44,565
Finance leases:
Property and equipment, at cost	$	6,862	$	6,408
Accumulated amortization	(3,136)		(2,498)
Property and equipment, net	$	3,726	$	3,910
Current maturities of finance leases	$	582	$	513
Non-current maturities of finance leases	3,405		3,644
Total finance lease liabilities	$	3,987	$	4,157
Weighted average remaining lease term (in years):
Operating leases	10.4		11.9
Finance leases	6.8		7.8
Weighted average discount rate:
Operating leases	6.3%		5.9%
Finance leases	2.2%		2.1%

Current maturities of finance leases are included as a component of Other current liabilities on our Consolidated Balance Sheets. A summary of lease expenses for our finance and operating leases included in General, administrative, and marketing expenses on our Consolidated Statements of Operations and Comprehensive Loss was as follows (in thousands):

	December 31, 2023		December 31, 2022
Amortization of property and equipment	$	542	$	518
Interest expense on finance leases	84		89
Total finance lease expense	626		607
Operating lease expensea	7,354		7,432
Sublease income	(278)		(306)
Total lease expense	$	7,702	$	7,733

______________________

a Total rental expense for operating leases was $7.5 million in 2021. The operating lease expense included right-of-use asset amortization and interest expense on the lease liability.

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

Cash paid for amounts included in the measurement of lease liabilities:	2023		2022
Operating cash flows for operating leases	$	7,263	$	6,927
Financing cash flows for finance leases	539		507
Operating cash flows for finance leases	84		90

Future minimum lease payments are as follows (in thousands):

	Finance Leases		Operating Leases
2024	$	655	$	6,302
2025	648		7,085
2026	627		6,539
2027	617		6,058
2028	599		5,862
Thereafter	1,136		33,920
Total minimum lease payments	$	4,282	$	65,766
Less amount representing interest	(295)		(18,394)
Present value of net minimum lease payments	3,987		47,372
Less current maturities	(582)		(3,395)
Lease obligations, less current maturities	$	3,405	$	43,977

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.

Information related to leases included in the Consolidated Balance Sheets was as follows (in thousands, except lease term and discount rate):

Operating leases:	December 31, 2023		December 31, 2022
Operating lease right-of-use assets, net	$	43,822	$	41,859
Current maturities of operating leases	$	3,395	$	3,308
Non-current maturities of operating leases	43,977		41,257
Total operating lease liabilities	$	47,372	$	44,565
Finance leases:
Property and equipment, at cost	$	6,862	$	6,408
Accumulated amortization	(3,136)		(2,498)
Property and equipment, net	$	3,726	$	3,910
Current maturities of finance leases	$	582	$	513
Non-current maturities of finance leases	3,405		3,644
Total finance lease liabilities	$	3,987	$	4,157
Weighted average remaining lease term (in years):
Operating leases	10.4		11.9
Finance leases	6.8		7.8
Weighted average discount rate:
Operating leases	6.3%		5.9%
Finance leases	2.2%		2.1%

Current maturities of finance leases are included as a component of Other current liabilities on our Consolidated Balance Sheets. A summary of lease expenses for our finance and operating leases included in General, administrative, and marketing expenses on our Consolidated Statements of Operations and Comprehensive Loss was as follows (in thousands):

	December 31, 2023		December 31, 2022
Amortization of property and equipment	$	542	$	518
Interest expense on finance leases	84		89
Total finance lease expense	626		607
Operating lease expensea	7,354		7,432
Sublease income	(278)		(306)
Total lease expense	$	7,702	$	7,733

______________________

a Total rental expense for operating leases was $7.5 million in 2021. The operating lease expense included right-of-use asset amortization and interest expense on the lease liability.

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

Cash paid for amounts included in the measurement of lease liabilities:	2023		2022
Operating cash flows for operating leases	$	7,263	$	6,927
Financing cash flows for finance leases	539		507
Operating cash flows for finance leases	84		90

Future minimum lease payments are as follows (in thousands):

	Finance Leases		Operating Leases
2024	$	655	$	6,302
2025	648		7,085
2026	627		6,539
2027	617		6,058
2028	599		5,862
Thereafter	1,136		33,920
Total minimum lease payments	$	4,282	$	65,766
Less amount representing interest	(295)		(18,394)
Present value of net minimum lease payments	3,987		47,372
Less current maturities	(582)		(3,395)
Lease obligations, less current maturities	$	3,405	$	43,977