The Company primarily leases manufacturing facilities, distribution centers, and office spaces with lease terms expiring through 2031. The Company recognized the following lease costs in the accompanying condensed consolidated statement of income:


	Three Months Ended March 31,
	2024		2023
	(in thousands)
Operating lease expense	$	1,820	$	1,333
Short-term lease expense	9		13
Variable lease expense	373		247
Total lease expense	$	2,202	$	1,593

For the three months ended March 31, 2024 and 2023, rent expense included in operating expenses was $1,931,000 and $1,365,000, respectively, and rent expense included in cost of goods sold was $271,000 and $228,000, respectively.

The following table presents supplemental information related to operating leases:


	March 31, 2024		December 31, 2023
Weighted average remaining lease term	4.49 years		4.51 years
Weighted average discount rate	6.5	%	6.2	%


	Three Months Ended March 31,
	2024		2023
	(in thousands)
Cash paid for amounts included in measurement of lease obligations:
Operating cash flows from operating leases	$	1,829	$	1,363

As of March 31, 2024, future lease payments under operating leases were as follows:


	(in thousands)
2024 (remainder)	$	4,319
2025	5,621
2026	5,802
2027	4,537
2028	3,139
Thereafter	2,372
Total future lease payments	25,790
Less: imputed interest	(3,597)
Total lease liability balance	$	22,193

During the three months ended March 31, 2024, the Company recorded a non-cash impairment of a ROU asset of $1,993,000 resulting from the sublease of its City of Industry warehouse in California.