LEASES AND RELATED PARTY LEASES

12 Months Ended

Dec. 31, 2021

The Company leases administrative, manufacturing, research and distribution facilities and vehicles through operating lease agreements. The Company has no finance leases as of December 31, 2021. Many of the Company's leases include both lease (e.g., fixed payments including rent) and non-lease components (e.g., common-area or other maintenance costs). For vehicles, the Company has elected the practical expedient to group lease and non-lease components.

Most facility leases include one or more options to renew. The exercise of lease renewal options is typically at the Company's sole discretion, therefore, the majority of renewals to extend the lease terms are not included in the ROU assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates renewal options and when they are reasonably certain of exercise, the renewal period is included in the lease term.

As most of the Company's leases do not provide an implicit rate, the Company uses a collateralized incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments.

Total operating lease expense for the year ended December 31, 2021 and December 31, 2020, was $20.3 million and $19.7 million, respectively, which includes $0.3 million, in related party operating lease expense.

Supplemental balance sheet information related to operating leases at December 31, 2021 were as follows:


	December 31, 2021			December 31, 2020
	(In thousands, except lease term and discount rate)

ROU assets	$	84,543		$	83,635

Current lease liabilities	14,775			12,818
Non-current lease liabilities	90,329			88,118
Total lease liabilities	$	105,104		$	100,936

Weighted average remaining lease term (in years):

Leased facilities	10.4 years			11.6 years
Leased vehicles	2.1 years			2.3 years

Weighted average discount rate:
Leased facilities	5.1		%	4.6		%
Leased vehicles	2.6		%	2.3		%

Supplemental cash flow information related to leases was as follows:


	December 31, 2021		December 31, 2020
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	15,077	$	15,226

ROU assets obtained in exchange for lease liabilities:
Operating leases	12,610		6,027

Future minimum lease payments under operating leases at December 31, 2021 were as follows:


	Related Parties		Third Parties		Total
	(In thousands)
2022	296		17,678		17,974
2023	296		14,611		14,907
2024	296		12,784		13,080
2025	296		11,289		11,585
2026	296		9,889		10,185
Thereafter	838		67,992		68,830
Total minimum lease payments	$	2,318	$	134,243	$	136,561
Less: Imputed interest					$	31,457
Total lease liabilities					105,104
Less: Current lease liabilities					14,775
Long-term lease liabilities					90,329

There were no future minimum lease payments under finance leases at December 31, 2021.

Related Party Leases

The Company leases its manufacturing facility in Plainsboro, New Jersey, from a general partnership that is 50% owned by a corporation whose stockholders are trusts, whose beneficiaries include family members of the Company’s principal stockholder and former director. The term of the current lease agreement is through October 31, 2029 at an annual rate of approximately $0.3 million per year. The current lease agreement also provides (i) a 5-year renewal option for the Company to extend the lease from November 1, 2029 through October 31, 2034 at the fair market rental rate of the premises, and (ii) another 5-year renewal option to extend the lease from November 1, 2034 through October 31, 2039 at the fair market rental rate of the premises.