Note 7 - Leases

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note 7 - Leases

We have operating leases for corporate offices, sales offices, research and development facilities, storage facilities, and a data center. All of our facilities are leased under operating leases, which expire at various times through 2028, with a weighted-average remaining lease term of 3.4 years and a weighted-average discount rate of 5.8% as of September 30, 2023.

We recorded fixed operating lease expenses of $2.0 million and $1.9 million for the third quarter of fiscal 2023 and 2022, respectively, and $5.8 million for both the first nine months of fiscal 2023 and 2022.

The following table presents the lease balance classifications within the Consolidated Balance Sheets and summarizes their activity during the first nine months of fiscal 2023:

Operating lease right-of-use assets	(In thousands)
Balance as of December 31, 2022	$	17,590
Right-of-use assets obtained for new lease contracts during the period		3,718
Amortization of right-of-use assets during the period		(5,022	)
Adjustments for present value and foreign currency effects		(198	)
Balance as of September 30, 2023	$	16,088

Operating lease liabilities	(In thousands)
Balance as of December 31, 2022	$	20,072
Lease liabilities incurred for new lease contracts during the period		3,718
Accretion of lease liabilities		749
Operating cash used for payments on lease liabilities		(6,179	)
Adjustments for present value and foreign currency effects		(306	)
Balance as of September 30, 2023		18,054
Less: Current portion of operating lease liabilities (included in Accrued liabilities)		(5,932	)
Long-term operating lease liabilities, net of current portion	$	12,122

Maturities of operating lease liabilities as of September 30, 2023 are as follows:

Fiscal year	(In thousands)
2023 (Remaining quarter)	$	1,552
2024		7,000
2025		5,028
2026		3,405
2027		1,742
Thereafter		1,425
Total lease payments		20,152
Less: amount representing interest		(2,098	)
Total lease liabilities	$	18,054

Lease obligations for facilities restructured prior to the adoption of Topic 842 totaled approximately $4.9 million at September 30, 2023 and continued to be recorded in Other long-term liabilities on our Consolidated Balance Sheets.