Leases

6 Months Ended

Jun. 30, 2024

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, 2024		December 31, 2023
Assets
Operating lease assets	Other long-term assets	$	10,961	$	10,169
Finance lease assets1	Property, plant and equipment, net		11,757		11,281
Total lease assets		$	22,718	$	21,450

Liabilities
Current:
Operating lease liabilities	Accounts payable and accrued liabilities	$	2,946	$	2,575
Finance lease liabilities	Accounts payable and accrued liabilities		4,866		4,525
Noncurrent:
Operating lease liabilities	Other long-term obligations		8,010		7,590
Finance lease liabilities	Other long-term obligations		6,815		6,699
Total lease liabilities		$	22,637	$	21,389


1	Finance lease assets are presented net of accumulated amortization of $12.2 million and $9.6 million at June 30, 2024 and December 31, 2023, respectively.

The following table presents the components of lease expense:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Operating lease costs1	$	861	$	796	$	1,700	$	1,682
Finance lease costs:
Amortization of leased assets		1,351		1,331		2,620		2,562
Interest expense		145		113		279		224
Net lease costs	$	2,357	$	2,240	$	4,599	$	4,468


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)	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	1,715	$	1,629
Operating cash flows for finance leases	$	279	$	213
Financing cash flows for finance leases	$	2,662	$	2,817
Leased assets exchanged for new lease liabilities:
Operating leases	$	2,287	$	1,149
Finance leases	$	3,062	$	2,111