Leases

12 Months Ended

Dec. 31, 2023

Note 8 – Leases

We have operating leases for office space, automobiles and various other equipment in the U.S. and in certain international locations. As of December 31, 2023, our operating leases had remaining lease terms of two months to 116 months, some of which included options to extend the leases for up to one year, and some of which included options to terminate the leases within three months. Supplemental balance sheet information related to operating leases is as follows:


		December 31,		December 31,
(In thousands)	Classification	2023		2022
Assets
Operating lease assets	Other non-current assets	$	37,474	$	30,340
Total lease asset		$	37,474	$	30,340

Liabilities
Current operating lease liability	Accrued expenses and other liabilities	$	7,720	$	7,596
Non-current lease obligations	Non-current lease obligations		31,420		22,807
Total lease liability		$	39,140	$	30,403

Lease expense related to short-term leases was less than $0.1 million for the twelve months ended December 31, 2023, 2022 and 2021, and is included in cost of revenue, selling, general and administrative expenses and research and development expenses in the Consolidated Statements of Loss. Lease expense related to variable lease payments that do not depend on an index or rate, such as real estate taxes and insurance reimbursements, was $0.7 million, $0.6 million and $0.5 million for the twelve months ended December 31, 2023, 2022 and 2021, respectively.

The components of lease expense included in the Consolidated Statements of Loss were as follows:


	For the Year Ended December 31,
(In thousands)	2023		2022		2021
Cost of revenue	$	163	$	110	$	51
Research and development expenses		990		942		1,071
Selling, general and administrative expenses		9,708		3,961		883
Total operating lease expense	$	10,861	$	5,013	$	2,005

As of December 31, 2023, operating lease liabilities included on the Consolidated Balance Sheet by future maturity were as follows:


(In thousands)	Amount
2024		9,639
2025		8,423
2026		6,608
2027		4,923
2028		4,723
Thereafter		13,210
Total lease payments		47,526
Less: Interest		(8,386	)
Present value of lease liabilities	$	39,140

Future operating lease payments include $3.3 million related to options to extend lease terms that are reasonably certain of being exercised. There are no legally binding leases that have not yet commenced.

An incremental borrowing rate is used based on information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is determined on a portfolio basis by grouping leases with similar terms, as well as grouping leases based on a U.S. dollar or euro functional currency. The following table provides information about our weighted average lease terms and weighted average discount rates:


	As of December 31,
Weighted average remaining lease term (years)	2023			2022
Operating leases with USD functional currency		8.1			7.9
Operating leases with EUR functional currency		5.8			4.2
Weighted average discount rate
Operating leases with USD functional currency		3.70	%		3.77	%
Operating leases with EUR functional currency		3.92	%		3.70	%