Leases

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Leases

Leases

The Company has various operating lease agreements for office space, warehouses, manufacturing, and production locations as well as vehicles and other equipment. Our real estate leases have remaining lease terms of one to ten years. We exclude options that are not reasonably certain to be exercised from our lease terms, ranging from one to five years. Our lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms. For certain leases, we receive incentives from our landlords, such as rent abatements, which effectively reduce the total lease payments owed for these leases. Vehicle and other equipment operating leases have terms between one and five years.

Our financing leases relate to research equipment, machinery, and other equipment.

The table below presents certain information related to the weighted average discount rate and weighted average remaining lease term for the Company’s leases as of June 30, 2023 and December 31, 2022:

	June 30,		December 31,
(In thousands)	2023		2022
Weighted average discount rate - operating leases	4.3	%	4.2	%
Weighted average discount rate - finance leases	8.3	%	6.1	%
Weighted average remaining lease term in years - operating leases	6.7		7.2
Weighted average remaining lease term in years - finance leases	4.5		2.0

The components of lease expense for the three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2023		2022		2023		2022
Operating lease costs	$	898	$	929	$	1,795	$	1,836
Short-term lease costs	448		519		850		986
Total operating lease costs	1,346		1,448		2,645		2,822
Variable lease costs	345		254		604		559
Total lease costs	$	1,691	$	1,702	$	3,249	$	3,381

Maturities of our lease liabilities as of June 30, 2023 are as follows:

(In thousands)	Operating Leases		Financing Leases
2023 (6 months remaining)	$	1,768	$	275
2024	3,405		487
2025	2,960		424
2026	2,534		389
2027	2,280		387
Thereafter	6,938		134
Total lease payments	19,885		2,096
Less: interest	(2,582)		(340)
Total present value of lease liabilities	$	17,303	$	1,756

Leases

Leases

The Company has various operating lease agreements for office space, warehouses, manufacturing, and production locations as well as vehicles and other equipment. Our real estate leases have remaining lease terms of one to ten years. We exclude options that are not reasonably certain to be exercised from our lease terms, ranging from one to five years. Our lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms. For certain leases, we receive incentives from our landlords, such as rent abatements, which effectively reduce the total lease payments owed for these leases. Vehicle and other equipment operating leases have terms between one and five years.

Our financing leases relate to research equipment, machinery, and other equipment.

The table below presents certain information related to the weighted average discount rate and weighted average remaining lease term for the Company’s leases as of June 30, 2023 and December 31, 2022:

	June 30,		December 31,
(In thousands)	2023		2022
Weighted average discount rate - operating leases	4.3	%	4.2	%
Weighted average discount rate - finance leases	8.3	%	6.1	%
Weighted average remaining lease term in years - operating leases	6.7		7.2
Weighted average remaining lease term in years - finance leases	4.5		2.0

The components of lease expense for the three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2023		2022		2023		2022
Operating lease costs	$	898	$	929	$	1,795	$	1,836
Short-term lease costs	448		519		850		986
Total operating lease costs	1,346		1,448		2,645		2,822
Variable lease costs	345		254		604		559
Total lease costs	$	1,691	$	1,702	$	3,249	$	3,381

Maturities of our lease liabilities as of June 30, 2023 are as follows:

(In thousands)	Operating Leases		Financing Leases
2023 (6 months remaining)	$	1,768	$	275
2024	3,405		487
2025	2,960		424
2026	2,534		389
2027	2,280		387
Thereafter	6,938		134
Total lease payments	19,885		2,096
Less: interest	(2,582)		(340)
Total present value of lease liabilities	$	17,303	$	1,756