Leases

9 Months Ended

Sep. 30, 2021

The Company has obligations under lease arrangements primarily for facilities, equipment and vehicles. These leases have original lease periods expiring between November 2021 and July 2034. For the three and nine months ended September 30, 2021, the Company recorded lease expense of $1.4 million and $4.4 million within Cost of sales, $0.1 million and $0.3 million within Research, development, and engineering expenses, less than $0.1 million within Selling, general and administrative expenses and less than $0.1 million within Interest expense in the Consolidated Statements of Operations, respectively. For the three and nine months ended September 30, 2020, the Company recorded lease expense of $1.4 million and $4.9 million within Cost of sales, $0.4 million and $0.5 million within Research, development and engineering expenses, $0.1 million and $0.2 million within Selling, general and administrative expenses and less than $0.1 million within Interest expense in the Consolidated Statements of Operations, respectively.

The following table summarizes the components of lease expense:


(in thousands)	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2021		2020		2021		2020

Operating lease cost	$	1,194	$	1,394	$	3,661	$	4,141
Finance lease cost
Amortization of right-of-use (“ROU”) asset	40		52		144		156
Interest expense	7		12		26		37
Short-term lease cost	38		105		270		322
Variable lease cost	326		363		840		1,160
Total lease cost	$	1,605	$	1,926	$	4,941	$	5,816

The following table presents supplemental cash flow information related to leases:


(in thousands)	For the Nine Months Ended September 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows paid for operating leases	$	3,731	$	4,105
Operating cash flows paid for interest portion of finance leases	26		37
Financing cash flows paid for principal portion of finance leases	144		145
Right-of-use assets obtained in exchange for lease obligations
Operating leases	9		299
Finance leases	—		11

As of September 30, 2021 and December 31, 2020, the weighted-average remaining lease term was 5.9 years and 6.2 years for operating leases and 3.5 years and 3.8 years for finance leases, respectively. The weighted-average discount rate was 7.1% for operating leases as of both September 30, 2021 and December 31, 2020 and 6.7% for finance leases as of both September 30, 2021 and December 31, 2020.

The following table presents supplemental balance sheet information related to leases:


(in thousands)	September 30, 2021		December 31, 2020

Operating lease ROU assets, net 1	$	14,347	$	17,104

Operating lease liabilities, current 2	3,868		3,793
Operating lease liabilities, non-current 3	11,255		14,156
Total operating lease liabilities	$	15,123	$	17,949

Finance lease ROU assets, net 1	$	412	$	568

Finance lease liabilities, current 2	175		200
Finance lease liabilities, non-current 3	282		413
Total finance lease liabilities	$	457	$	613

1.Included in Other noncurrent assets for operating leases and Property, plant and equipment, net for finance leases on the Consolidated Balance Sheets.

2.Included in Other accrued liabilities for operating leases and Current maturities of long-term debt for finance leases on the Consolidated Balance Sheets.

3.Included in Other noncurrent liabilities for operating leases and Long-term debt, net of current maturities for finance leases on the Consolidated Balance Sheets.

The following table presents maturity analysis of lease liabilities as of September 30, 2021:


(in thousands)	Operating Leases		Finance Leases
Three months ending December 31, 2021	$	1,223	$	57
Year ending December 31, 2022	4,795		168
Year ending December 31, 2023	3,288		103
Year ending December 31, 2024	1,815		84
Year ending December 31, 2025	1,851		82
Thereafter	5,538		17
Total undiscounted lease payments	18,510		511
Less: imputed interest	3,387		54
Total lease liabilities	$	15,123	$	457

Leases