Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Lease Commitments

The Company has entered into various noncancelable operating leases for its facilities with various expiry dates through 2034.

Future minimum lease payments for non-cancelable operating and capital leases as of December 31, 2021 are as follows (in thousands):


	Capital Leases		Operating Leases
2022	$	1,253	$	7,660
2023	978		7,891
2024	963		5,126
2025	1,761		3,435
2026	—		3,049
Thereafter	—		22,524
Total minimum lease payments	4,955		$	49,685
Amount representing interest	(1,317)
Present value of minimum lease payments	$	3,638

Rental expenses were $4.4 million, $4.6 million, and $5.7 million for the years ended December 31, 2019, 2020, and 2021, respectively.

Joint Development Agreements

In April 2020, the Company entered into a Development Agreement with Scania relating to a hub-to-hub pilot program using Scania vehicles and the Company’s autonomous technology. Under the Development Agreement, each party will fund its own costs related to the program. There are no reimbursements paid between the parties and there are no spending floors included within the Development Agreement. Upon successful completion of the development activities, the parties intend to set up a long-term cooperation agreement covering development, maintenance, operation and sales of self-driving systems on a global scale. The terms and conditions of such arrangement will be negotiated by the parties and included in a separate Partnership Agreement.

In July 2020, the Company entered into a Joint Development Agreement (“JDA”) with Navistar under which the parties will work collaboratively to develop a purpose-built L4 autonomous semi-truck. Under the JDA, the parties grant each other rights to their background intellectual property to permit them to conduct research and development activities. Pursuant to the JDA, the Company agrees to reimburse Navistar up to $10.0 million for research and development expenses incurred. Payment of reimbursements is deferred to align with the achievement of certain milestones and reimbursements due are recorded within accrued expenses in the Company’s consolidated balance sheets. All reimbursements are expected to be paid within 12 months of the Company incurring the obligation. Upon successful completion of the development activities under the JDA, the parties will enter into good faith negotiations for a production license agreement. Products developed will be jointly commercialized by the parties.

As of December 31, 2021, expenses incurred by Navistar for reimbursement under the JDA are $10.0 million .

Litigation and Legal Proceedings

The Company is not currently a party to any pending material litigation or other legal proceeding or claims.