Commitments and Contingencies

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 8. Commitments and Contingencies

Operating Leases

The Company leases its office facilities, located in Concord, California and Amersfoort, the Netherlands, and certain equipment and automobiles under non-cancelable operating leases with initial terms in excess of one year that require the Company to pay operating costs, property taxes, insurance and maintenance. The operating leases expire at various dates through 2030, with certain of the leases providing for renewal options, provisions for adjusting future lease payments based on the consumer price index, and the right to terminate the lease early. The Company does not assume renewals in determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. The Company recorded the lease right-of-use asset and obligation at the present value of lease payments over the lease term. The rates implicit in the Company’s leases are generally not readily determinable. The Company must estimate its incremental borrowing rate to discount the lease payments to present value. Operating lease assets also include lease incentives.

Supplemental cash flow information related to operating leases is as follows (dollars in thousands):

	Year Ended December 31,
	2022		2021		2020
Cash payments for operating leases	$	3,345	$	3,390	$	3,400
Right-of-use assets obtained in exchange for operating lease obligations		1,401		1,311		344

	Year Ended December 31,
		2022			2021
Weighted-average remaining lease term		6.5 years			7.4 years
Weighted-average discount rate			8.4	%		8.7	%

Future minimum non-cancelable payments under operating leases as of December 31, 2022, were as follows (in thousands):

	Operating Leases
2023	$	3,178
2024		3,341
2025		3,312
2026		3,030
2027		3,347
Thereafter		7,420
Total future lease payments	$	23,628
Less imputed interest		6,194
Present value of lease liabilities	$	17,434

During the years ended December 31, 2022, 2021 and 2020, the Company recorded operating lease expenses of $3.2 million, $3.2 million and $3.3 million, respectively. As of December 31, 2022, the Company had no leases that have not yet commenced.

Purchase Commitments

The Company is party to agreements with certain providers for certain components and equipment. Certain of these agreements require minimum purchase commitments from the Company. As of December 31, 2022, the Company had $34.3 million of short-term purchase commitments and $14.2 million of long-term purchase commitments, which are not recorded in the Company’s consolidated balance sheets.