Leases (Tables)

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Net Lease Cost

The expenses generated by leasing activity for the three and six months ended June 30, 2023 and 2022 were as follows (in thousands):

		Three Months Ended June 30,				Six Months Ended June 30,
Lease Type	Classification	2023		2022		2023		2022
Operating Lease Expense (1)	Operating expenses	$	4,519	$	3,896	$	9,399	$	5,524
Financing Lease Amortization	Operating expenses	136		163		260		232
Financing Lease Interest	Interest expense	23		23		44		34
Financing Lease Expense		159		186		304		266
Net Lease Cost		$	4,678	$	4,082	$	9,703	$	5,790

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

The weighted average lease terms and interest rates of leases held as of June 30, 2023 were as follows:

Lease Type	Weighted Average Term in Years	Weighted Average Interest Rate
Operating Leases	6.9	7.7%
Financing Leases	3.0	6.8%

The cash outflows of leasing activity for the six months ended June 30, 2023 were as follows (in thousands):

		Six Months Ended June 30,
Cash Flow Source	Classification	2023		2022
Operating cash flows from operating leases	Operating activities	$	(6,710)	$	(5,182)
Operating cash flows from financing leases	Operating activities	(121)		(3)
Financing cash flows from financing leases	Financing activities	(249)		(39)

Operating Lease Assets and Liabilities

The value of net assets and liabilities related to our operating and finance leases as of June 30, 2023 and December 31, 2022 was as follows (in thousands):

Lease Type	June 30, 2023		December 31, 2022
Total ROU operating lease assets (1)	$	65,772	$	46,755
Total ROU financing lease assets (2)	1,587		1,519
Total lease assets	$	67,359	$	48,274
Total current operating lease liabilities	$	12,310	$	9,480
Total current financing lease liabilities	526		484
Total current lease liabilities	$	12,836	$	9,964
Total long term operating lease liabilities	$	56,827	$	38,898
Total long term financing lease liabilities	908		930
Total long term lease liabilities	$	57,735	$	39,828

(1)Operating lease assets are recorded net of accumulated amortization of $20.2 million as of June 30, 2023 and $14.8 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 $1.1 million as of June 30, 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 June 30, 2023 was as follows (in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total
Remaining 2023	$	8,913	$	331	$	9,244
2024	16,004		546		16,550
2025	14,920		361		15,281
2026	11,293		280		11,573
2027	9,406		77		9,483
Thereafter	29,573		—		29,573
Total lease payments	90,109		1,595		91,704
Less: Interest	(20,972)		(161)		(21,133)
Present value of lease liabilities	$	69,137	$	1,434	$	70,571

Value of Finance Lease Liabilities Generated by Leasing Activities

The value of lease liabilities related to our operating and finance leases as of June 30, 2023 was as follows (in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total
Remaining 2023	$	8,913	$	331	$	9,244
2024	16,004		546		16,550
2025	14,920		361		15,281
2026	11,293		280		11,573
2027	9,406		77		9,483
Thereafter	29,573		—		29,573
Total lease payments	90,109		1,595		91,704
Less: Interest	(20,972)		(161)		(21,133)
Present value of lease liabilities	$	69,137	$	1,434	$	70,571