Leases

6 Months Ended

Jun. 30, 2022

8. Leases

We determine whether an arrangement is a lease at inception. We have operating and finance leases for corporate offices, warehouse space and equipment (including vehicles). As of June 30, 2022, we are the lessee in all agreements. Our leases have remaining lease terms of 1 to 11 years, some of which include options to extend the leases based on agreed upon terms, and some of which include options to terminate the leases within 1 year.

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

We have lease agreements that contain both lease and non-lease components (e.g., common-area maintenance). For these agreements, we account for lease components separate from non-lease components.

The components of lease expense are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Operating lease cost	$	811	$	499	$	1,510	$	919
Variable and short-term lease cost		152		—		227		—
Finance lease cost:
Amortization of right-of use assets		306		212		691		339
Interest on lease liabilities		23		21		55		35
Total finance lease cost		329		233		746		374
Total lease cost	$	1,292	$	732	$	2,483	$	1,293

Supplemental cash flow information related to leases is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,027	$	416	$	2,213	$	824
Operating cash flows from financing leases		23		21		55		35
Financing cash flows from financing leases		239		228		392		510
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations		5,131		7,205		8,797		7,834
Right-of-use assets obtained in exchange for finance lease obligations		-		—		117		—

Supplemental balance sheet information related to leases is as follows:



	June 30, 2022		December 31, 2021
Operating Leases
Right-of-use assets	$	16,451	$	9,056
Lease liabilities:
Current lease liabilities		2,054		2,181
Non-current lease liabilities		14,978		7,202
Total operating lease liabilities	$	17,032	$	9,383


Finance Leases
Right-of-use assets	$	1,887	$	2,493
Lease liabilities:
Current lease liabilities		1,182		939
Non-current lease liabilities		1,445		1,952
Total finance lease liabilities	$	2,627	$	2,891


Weighted Average Remaining Lease Term
Weighted-average remaining lease term—operating leases	7.73 years			5.26 years
Weighted-average remaining lease term—finance leases	1.82 years			2.21 years

Weighted Average Discount Rate
Weighted-average discount rate—operating leases		4.27	%		3.90	%
Weighted-average discount rate—finance leases		3.52	%		3.57	%

As of June 30, 2022, minimum lease payments by period are expected to be as follows:


	Finance			Operating
2022 (excluding the six months ended June 30, 2022)	$	710		$	1,496
2023		1,283			1,879
2024		740			2,969
2025		19			2,619
2026		11			2,422
Thereafter		—			9,021
Total minimum lease payments		2,763			20,406
Less: imputed interest		(136	)		(3,374	)
Present value of lease liabilities	$	2,627		$	17,032