Commitments, Contingencies, and Leases

12 Months Ended

Dec. 31, 2021

Commitments Contingencies And Leases [Abstract]

Commitments, Contingencies, and Leases

8. Commitments, contingencies, and leases

We had unconditional purchase obligations as of December 31, 2021, as follows:

(in thousands)	December 31, 2021
2022	$	9,769
2023		11,359
2024		10,750
2025		8,625
2026 and thereafter		—
Total	$	40,503

Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties, and other sources are recorded when it is probable that a liability has been incurred and that the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. From time to time, we are subject to various claims that arise in the normal course of business. In the opinion of management, we are unaware of any pending or unasserted claims that would have a material adverse effect on our financial position, liquidity, or results.

Certain executive officers are entitled to payments in the event of termination of employment in connection with a certain change in control.

Our certificate of incorporation and certain contractual arrangements provide for indemnification of our officers and directors for certain events or occurrences. We maintain a directors and officers insurance policy to provide coverage in the event of a claim against an officer or director. Historically, we have not been obligated to make any payments for indemnification obligations, and no liabilities have been recorded for these obligations on the consolidated balance sheets as of December 31, 2021 and 2020.

Leases

We lease certain facilities under operating lease agreements that expire at various dates through 2028. Some of these arrangements contain renewal options and require us to pay taxes, insurance and maintenance costs. Renewal options were not included in the ROU asset and lease liability calculation.

We adopted ASC Topic 842, Leases on January 1, 2019. Operating expenses were $3.8 and $3.7 million, which included short-term rent expense of $0.5 and $0.4 million, respectively, for the years ended December 31, 2021 and 2020. Operating rent expense was $3.2 million for the year ended December 31, 2019. We elected the practical expedient to not provide comparable presentation for periods prior to adoption.

Supplemental lease information

	Year ended December 31,
Cash flow information (in thousands)	2021		2020
Cash paid for operating lease liabilities	$	3,927	$	3,666
Right-of-use assets obtained in exchange for operating lease    obligations	$	—	$	—

	Year ended December 31,
Operating lease information	2021			2020
Weighted-average remaining lease-term	5.5 years			6.0 years
Weighted-average discount rate		5.46	%		5.42	%

The future maturities of operating lease liabilities are as follows:

(in thousands)	December 31, 2021
2022		3,278
2023		2,534
2024		2,243
2025		2,011
2026		2,071
Thereafter		2,852
Total minimum lease payments	$	14,989
Less imputed interest		(2,097	)
Total lease liabilities	$	12,892