Leases

9 Months Ended

Sep. 30, 2024

10.

LEASES

The Company leases manufacturing and training facilities, storage warehouses, office space, and certain plant equipment under various operating leases. The Company’s operating leases have remaining lease terms of up to 9 years. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.

For the nine months ended September 30, 2024 and September 30, 2023, total operating lease expense was $7.3 million and $6.1 million, respectively. The weighted average remaining lease term at September 30, 2024 and December 31, 2023 was 4.4 years. The weighted average discount rate at September 30, 2024 and December 31, 2023 was 3.89% and 2.32%, respectively.

The following table includes supplemental cash flow information for the nine months ended September 30, 2024 and September 30, 2023, and supplemental balance sheet information at September 30, 2024 and December 31, 2023 related to operating leases (in thousands):


	Nine Months Ended September 30,
Supplemental cash flow information	2024		2023
Cash paid for amounts included in the measurement of operating lease liabilities	$	7,346	$	6,236
Operating ROU assets obtained in exchange for lease liabilities	$	16,379	$	1,882


Supplemental balance sheet information	September 30, 2024		December 31, 2023
Operating lease ROU assets	$	36,110	$	26,233
Operating lease liabilities:
Accrued expenses and other current liabilities	$	9,555	$	7,663
Operating lease liabilities		26,782		18,840
Total operating lease liabilities	$	36,337	$	26,503

The following table summarizes maturities of operating lease liabilities at September 30, 2024 (in thousands):


Maturities of operating lease liabilities
2024	$	2,655
2025		9,305
2026		8,631
2027		8,124
2028		7,175
Thereafter		4,076
Total lease payments		39,966
Less imputed interest		(3,629	)
Total operating lease liabilities	$	36,337