LEASES

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

LEASES

LEASES

We lease office space, warehouses, land, automobiles, office, and manufacturing equipment. Some of our leases include one or more renewal options to extend the lease term, which can be exercised at our sole discretion. Our lease agreements may include options to purchase the leased property. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Additionally, we do not have any material lessor or sub-leasing arrangements.

The following table presents components of lease cost (in thousands):

	Twelve Months Ended December 31,
	2023		2022		2021
Operating lease costs	$	21,575	$	24,371	$	23,921
Finance lease costs:
Amortization of assets	3,451		—		—
Interest on lease liabilities	595		—		—
Total finance lease costs	4,046		$	—	$	—
Total operating and finance lease costs	$	25,621	$	24,371	$	23,921

The following table presents supplemental cash flow information related to leases (in thousands):

	Twelve Months Ended December 31,
	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases	$	21,823	$	20,584	$	20,142
Operating cash flows - finance leases	595		—		—
Financing cash flows - finance leases	$	2,347	$	—	$	—

The following table presents the consolidated balance sheet location of assets and liabilities related to operating and finance leases (in thousands):

		December 31,
	Balance Sheet Location	2023		2022
Operating	Operating lease right-of-use assets	$	48,729	$	57,402
Finance	Property and equipment, net	11,720		—
Total lease assets		$	60,449	$	57,402
Current operating	Short-term operating lease liabilities	15,438		18,083
Non-current operating	Long-term operating lease liabilities	34,336		40,189
Current finance	Other current liabilities	3,329		—
Non-current finance	Other long-term liabilities	8,575		—
Total lease liabilities		$	61,678	$	58,272

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments.

As of December 31, 2023 maturities of lease liabilities are as follows (in thousands):

	Finance		Operating
2024	$	4,059	$	18,177
2025	3,998		13,691
2026	3,437		10,218
2027	1,826		6,870
2028	108		3,690
Thereafter	—		4,168
Total future lease payments	13,428		56,814
Less: imputed interest	1,524		7,040
Total lease liability balance	$	11,904	$	49,774

The following table presents weighted average remaining lease terms and discount rates:

	December 31,
	2023	2022
Weighted-average remaining lease term - operating leases	4.1 years	4.1 years
Weighted-average remaining lease term - finance leases	3.5 years	—
Weighted average discount rate - operating leases	6.8%	6.5%
Weighted-average discount rate - finance leases	7.5%	—%

For the twelve months ended December 31, 2023, the Company incurred approximately $1.8 million in lease expenses to entities controlled by the Company's Chief Executive Officer and family.

LEASES

LEASES

We lease office space, warehouses, land, automobiles, office, and manufacturing equipment. Some of our leases include one or more renewal options to extend the lease term, which can be exercised at our sole discretion. Our lease agreements may include options to purchase the leased property. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Additionally, we do not have any material lessor or sub-leasing arrangements.

The following table presents components of lease cost (in thousands):

	Twelve Months Ended December 31,
	2023		2022		2021
Operating lease costs	$	21,575	$	24,371	$	23,921
Finance lease costs:
Amortization of assets	3,451		—		—
Interest on lease liabilities	595		—		—
Total finance lease costs	4,046		$	—	$	—
Total operating and finance lease costs	$	25,621	$	24,371	$	23,921

The following table presents supplemental cash flow information related to leases (in thousands):

	Twelve Months Ended December 31,
	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases	$	21,823	$	20,584	$	20,142
Operating cash flows - finance leases	595		—		—
Financing cash flows - finance leases	$	2,347	$	—	$	—

The following table presents the consolidated balance sheet location of assets and liabilities related to operating and finance leases (in thousands):

		December 31,
	Balance Sheet Location	2023		2022
Operating	Operating lease right-of-use assets	$	48,729	$	57,402
Finance	Property and equipment, net	11,720		—
Total lease assets		$	60,449	$	57,402
Current operating	Short-term operating lease liabilities	15,438		18,083
Non-current operating	Long-term operating lease liabilities	34,336		40,189
Current finance	Other current liabilities	3,329		—
Non-current finance	Other long-term liabilities	8,575		—
Total lease liabilities		$	61,678	$	58,272

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments.

As of December 31, 2023 maturities of lease liabilities are as follows (in thousands):

	Finance		Operating
2024	$	4,059	$	18,177
2025	3,998		13,691
2026	3,437		10,218
2027	1,826		6,870
2028	108		3,690
Thereafter	—		4,168
Total future lease payments	13,428		56,814
Less: imputed interest	1,524		7,040
Total lease liability balance	$	11,904	$	49,774

The following table presents weighted average remaining lease terms and discount rates:

	December 31,
	2023	2022
Weighted-average remaining lease term - operating leases	4.1 years	4.1 years
Weighted-average remaining lease term - finance leases	3.5 years	—
Weighted average discount rate - operating leases	6.8%	6.5%
Weighted-average discount rate - finance leases	7.5%	—%

For the twelve months ended December 31, 2023, the Company incurred approximately $1.8 million in lease expenses to entities controlled by the Company's Chief Executive Officer and family.