Leases

6 Months Ended

Jun. 30, 2022

NOTE 10. LEASES

We lease certain equipment, office space and land. Lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease.

The following table presents supplemental balance sheet information related to lease assets and liabilities:


(in thousands)	Classification	June 30, 2022		December 31, 2021
Assets
Operating lease assets	Other long-term assets	$	8,142	$	8,514
Finance lease assets1	Property, plant and equipment, net		11,070		10,663
Total lease assets		$	19,212	$	19,177

Liabilities
Current:
Operating lease liabilities	Accounts payable and accrued liabilities	$	2,682	$	3,021
Finance lease liabilities	Accounts payable and accrued liabilities		4,336		3,577
Noncurrent:
Operating lease liabilities	Other long-term obligations		5,551		5,598
Finance lease liabilities	Other long-term obligations		6,622		6,972
Total lease liabilities		$	19,191	$	19,168


1	Finance lease assets are presented net of accumulated amortization of $6.5 million and $4.5 million as of June 30, 2022 and December 31, 2021, respectively.

The following table presents the components of lease expense:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Operating lease costs1	$	881	$	1,285	$	1,828	$	2,613
Finance lease costs:
Amortization of leased assets		995		633		1,924		1,222
Interest on lease liabilities		69		51		136		102
Net lease costs	$	1,945	$	1,969	$	3,888	$	3,937


1	Excludes short-term leases and variable lease costs, which are immaterial.

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


	Six Months Ended June 30,
(in thousands)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	1,822	$	2,590
Operating cash flows for finance leases	$	136	$	102
Financing cash flows for finance leases	$	1,961	$	1,208
Leased assets exchanged for new lease liabilities:
Operating leases	$	1,279	$	213
Finance leases	$	2,331	$	3,093