Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Net Lease Cost

The expenses generated by leasing activity for the three months ended March 31, 2023 and 2022 were as follows (in thousands):

		Three Months Ended March 31,
Lease Type	Classification	2023		2022
Operating Lease Expense (1)	Operating expenses	$	4,882	$	1,836
Financing Lease Amortization	Operating expenses	138		74
Financing Lease Interest	Interest expense	26		12
Financing Lease Expense		164		86
Net Lease Cost		$	5,046	$	1,922

(1)     Includes short term lease expense, which is immaterial.

The weighted average lease terms and interest rates of leases held as of March 31, 2023 were as follows:

Lease Type	Weighted Average Term in Years	Weighted Average Interest Rate
Operating Leases	5.7	7.2%
Financing Leases	3.4	6.9%

The cash outflows of leasing activity for the three months ended March 31, 2023 were as follows (in thousands):

		Three Months Ended March 31,
Cash Flow Source	Classification	2023		2022
Operating cash flows from operating leases	Operating activities	$	(3,524)	$	(1,797)
Operating cash flows from financing leases	Operating activities	(68)		(12)
Financing cash flows from financing leases	Financing activities	(123)		(73)

Operating Lease Assets and Liabilities

The value of net assets and liabilities related to our operating and finance leases as of March 31, 2023 and December 31, 2022 was as follows (in thousands):

Lease Type	March 31, 2023		December 31, 2022
Total ROU operating lease assets (1)	$	46,403	$	46,755
Total ROU financing lease assets (2)	1,756		1,519
Total lease assets	$	48,159	$	48,274
Total current operating lease liabilities	$	10,159	$	9,480
Total current financing lease liabilities	585		484
Total current lease liabilities	$	10,744	$	9,964
Total long term operating lease liabilities	$	38,014	$	38,898
Total long term financing lease liabilities	1,047		930
Total long term lease liabilities	$	39,061	$	39,828

(1)Operating lease assets are recorded net of accumulated amortization of $13.6 million as of March 31, 2023 and $10.8 million as of December 31, 2022

(2)Financing lease assets are recorded net of accumulated amortization as a component of Other assets in the Unaudited Condensed Consolidated Balance Sheet of $1.0 million as of March 31, 2023 and $0.9 million as of December 31, 2022

Value of Operating Lease Liabilities Generated by Leasing Activities

The value of lease liabilities related to our operating and finance leases as of March 31, 2023 was as follows (in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total
Year one	$	11,172	$	551	$	11,723
Year two	11,939		529		12,468
Year three	10,464		372		10,836
Year four	7,152		290		7,442
Year five	5,822		79		5,901
Subsequent years	12,125		—		12,125
Total lease payments	58,674		1,821		60,495
Less: Interest	(10,501)		(189)		(10,690)
Present value of lease liabilities	$	48,173	$	1,632	$	49,805

Value of Finance Lease Liabilities Generated by Leasing Activities

The value of lease liabilities related to our operating and finance leases as of March 31, 2023 was as follows (in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total
Year one	$	11,172	$	551	$	11,723
Year two	11,939		529		12,468
Year three	10,464		372		10,836
Year four	7,152		290		7,442
Year five	5,822		79		5,901
Subsequent years	12,125		—		12,125
Total lease payments	58,674		1,821		60,495
Less: Interest	(10,501)		(189)		(10,690)
Present value of lease liabilities	$	48,173	$	1,632	$	49,805