Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

(7) Leases

We have various lease agreements for our facilities, equipment and vehicles with remaining lease terms ranging from one to fifteen years.

On February 25, 2021, the Company entered into an agreement to amend its lease for its corporate office and extended the term. As part of this agreement, the Company sold land owned adjacent to our corporate office for $389 and entered into a lease with the buyer of the land for a new building containing approximately 100,000 rentable square feet, to be constructed and funded by the lessor up to a certain amount. The lease terms, as amended, extend through March 31, 2038 for both the existing building and the expansion site. Lease payments for the new building started during December 2022 upon construction becoming substantially complete. The total estimated base rent lease payments as of December 31, 2022 are $19,142, which are not included in the lease information below as the lease did not commence until February 2023 upon our receipt of the certificate of occupancy and, as a result, the building becoming available for use by the Company.

Additionally, we entered into a lease for a new building in Littleton, CO, which will contain approximately 50,000 rentable square feet, and will be constructed and funded by the lessor up to a certain amount. The lease term is for ten years upon commencement, which is when construction is substantially complete. The total estimated base rent lease payments at December 31, 2022 are $14,233, which are not included in the lease information below as the lease has not yet commenced.

Components of lease cost (income) for the years ended December 31, 2022, 2021, and 2020 were as follows:

(in thousands)	2022		2021		2020
Operating lease cost	$	9,135	$	10,226	$	13,937
Finance lease cost - amortization expense	621		714		937
Finance lease cost - interest expense	196		238		664
Short-term lease cost	705		76		159
Variable lease cost	764		3,163		1,363
Sublease income	(158)		(569)		(615)
Total	$	11,263	$	13,848	$	16,445

Balance sheet classifications at December 31, 2022 and 2021 are summarized below:

	2022						2021
(in thousands)	Right-of-use assets		Current lease liabilities		Long-term lease liabilities		Right-of-use assets		Current lease liabilities		Long-term lease liabilities
Operating leases	$	39,502	$	8,343	$	38,499	$	42,502	$	7,711	$	43,359
Finance leases	3,244		693		3,280		3,854		633		4,061
Total	$	42,746	$	9,036	$	41,779	$	46,356	$	8,344	$	47,420

On September 1, 2020, we closed two facilities in connection with our restructuring plan. These facilities occupied leased office space that terminates in 2024. In conjunction with these closings, we recorded impairment charges totaling $1,627 related to our ROU assets and impairment charges totaling $1,953 related to leasehold improvements.

As of December 31, 2022, our future minimum lease payments under operating leases and finance leases with initial or remaining lease terms in excess of one year were as follows:

(in thousands)	Finance Leases		Operating Leases
Years ending December 31:
2023	$	823	$	10,780
2024	800		9,322
2025	743		7,194
2026	605		5,867
2027	578		5,458
Thereafter	1,012		22,077
Total lease payments (undiscounted)	4,561		60,698
Less: imputed interest	(588)		(13,856)
Present value of lease liabilities	$	3,973	$	46,842

Supplemental cash flow information related to our leases for the years ending December 31, 2022, 2021 and 2020

was as follows:

(in thousands)	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow for operating leases	$	10,268	$	11,108	$	13,151
Operating cash outflow for finance leases	$	196	$	238	$	661
Financing cash outflow for finance leases	$	652	$	721	$	496

The weighted-average remaining lease term and discount rate for our finance and operating leases as of December 31, 2022 and 2021 were as follows:

	2022		2021
	Finance	Operating	Finance	Operating
Weighted-average remaining lease term (in years)	6.2	7.7	7.4	8.7
Weighted-average discount rate	4.83%	6.49%	4.63%	5.45%

Leases

(7) Leases

We have various lease agreements for our facilities, equipment and vehicles with remaining lease terms ranging from one to fifteen years.

On February 25, 2021, the Company entered into an agreement to amend its lease for its corporate office and extended the term. As part of this agreement, the Company sold land owned adjacent to our corporate office for $389 and entered into a lease with the buyer of the land for a new building containing approximately 100,000 rentable square feet, to be constructed and funded by the lessor up to a certain amount. The lease terms, as amended, extend through March 31, 2038 for both the existing building and the expansion site. Lease payments for the new building started during December 2022 upon construction becoming substantially complete. The total estimated base rent lease payments as of December 31, 2022 are $19,142, which are not included in the lease information below as the lease did not commence until February 2023 upon our receipt of the certificate of occupancy and, as a result, the building becoming available for use by the Company.

Additionally, we entered into a lease for a new building in Littleton, CO, which will contain approximately 50,000 rentable square feet, and will be constructed and funded by the lessor up to a certain amount. The lease term is for ten years upon commencement, which is when construction is substantially complete. The total estimated base rent lease payments at December 31, 2022 are $14,233, which are not included in the lease information below as the lease has not yet commenced.

Components of lease cost (income) for the years ended December 31, 2022, 2021, and 2020 were as follows:

(in thousands)	2022		2021		2020
Operating lease cost	$	9,135	$	10,226	$	13,937
Finance lease cost - amortization expense	621		714		937
Finance lease cost - interest expense	196		238		664
Short-term lease cost	705		76		159
Variable lease cost	764		3,163		1,363
Sublease income	(158)		(569)		(615)
Total	$	11,263	$	13,848	$	16,445

Balance sheet classifications at December 31, 2022 and 2021 are summarized below:

	2022						2021
(in thousands)	Right-of-use assets		Current lease liabilities		Long-term lease liabilities		Right-of-use assets		Current lease liabilities		Long-term lease liabilities
Operating leases	$	39,502	$	8,343	$	38,499	$	42,502	$	7,711	$	43,359
Finance leases	3,244		693		3,280		3,854		633		4,061
Total	$	42,746	$	9,036	$	41,779	$	46,356	$	8,344	$	47,420

On September 1, 2020, we closed two facilities in connection with our restructuring plan. These facilities occupied leased office space that terminates in 2024. In conjunction with these closings, we recorded impairment charges totaling $1,627 related to our ROU assets and impairment charges totaling $1,953 related to leasehold improvements.

As of December 31, 2022, our future minimum lease payments under operating leases and finance leases with initial or remaining lease terms in excess of one year were as follows:

(in thousands)	Finance Leases		Operating Leases
Years ending December 31:
2023	$	823	$	10,780
2024	800		9,322
2025	743		7,194
2026	605		5,867
2027	578		5,458
Thereafter	1,012		22,077
Total lease payments (undiscounted)	4,561		60,698
Less: imputed interest	(588)		(13,856)
Present value of lease liabilities	$	3,973	$	46,842

Supplemental cash flow information related to our leases for the years ending December 31, 2022, 2021 and 2020

was as follows:

(in thousands)	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow for operating leases	$	10,268	$	11,108	$	13,151
Operating cash outflow for finance leases	$	196	$	238	$	661
Financing cash outflow for finance leases	$	652	$	721	$	496

The weighted-average remaining lease term and discount rate for our finance and operating leases as of December 31, 2022 and 2021 were as follows:

	2022		2021
	Finance	Operating	Finance	Operating
Weighted-average remaining lease term (in years)	6.2	7.7	7.4	8.7
Weighted-average discount rate	4.83%	6.49%	4.63%	5.45%