Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

5. Leases

As of March 31, 2023, the weighted average remaining lease term was 8.8 and 4.4 years for operating and finance leases, respectively. As of March 31, 2023, the weighted average discount rate was 3.3% and 3.6% for operating and finance leases, respectively.

The components of lease expense were as follows (U.S. dollars in thousands):

	Three Months Ended March 31,
	2023		2022
Operating lease expense
Operating lease cost	$	8,161	$	10,439
Variable lease cost		1,075		1,157
Short-term lease cost		—		30
Finance lease expense
Amortization of right-of-use assets		1,000		556
Interest on lease liabilities		134		66
Total lease expense	$	10,370	$	12,248

Supplemental cash flow information related to leases was as follows (U.S. dollars in thousands):

	Three Months Ended March 31,
	2023		2022
Operating cash outflow from operating leases	$	8,150	$	10,405
Operating cash outflow from finance leases	$	132	$	68
Financing cash outflow from finance leases	$	912	$	476
Right-of-use assets obtained in exchange for operating lease obligations	$	7,981	$	23,730
Right-of-use assets obtained in exchange for finance lease obligations	$	520	$	—

Maturities of lease liabilities were as follows (U.S. dollars in thousands):

Year Ending December 31	Operating Leases		Finance Leases
2023	$	18,542	$	2,875
2024		20,249		3,474
2025		14,916		3,400
2026		10,241		3,305
2027		7,885		2,953
Thereafter		43,851		—
Total		115,684		16,007
Less: Finance charges		15,200		1,269
Total principal liability	$	100,484	$	14,738

The Company has additional lease liabilities of $1.3 million which have not yet commenced as of March 31, 2023, and as such, have not been recognized on the consolidated balance sheets.