Leases

6 Months Ended

Jun. 30, 2022

We have operating and finance lease obligations resulting from the lease of land and buildings that comprise our corporate headquarters and various manufacturing facilities; leases related to additional manufacturing, office, and warehouse space; leases on company vehicles; and leases on a variety of office and other equipment.

On January 6, 2021 we executed a modification to extend the lease of our headquarters located in Kennesaw, Georgia. This modification resulted in an increase in the present value of future lease obligations and corresponding right-of-use asset of $23.3 million, using a discount rate of 6.41%.

On June 1, 2021 we began occupancy of the newly constructed addition to our leased international headquarters located in Hechingen, Germany. This lease resulted in an increase in the present value of future lease obligations and corresponding right-of-use asset of $9.8 million, using a discount rate of 5.46%.

Information related to leases included in the Condensed Consolidated Balance Sheets is as follows (in thousands, except lease term and discount rate):


Operating leases:	June 30, 2022		December 31, 2021
Operating lease right-of-use assets	$	56,376	$	58,097
Accumulated amortization	(13,717)		(12,383)
Operating lease right-of-use assets, net	$	42,659	$	45,714

Current maturities of operating leases	$	3,207	$	3,149
Non-current maturities of operating leases	42,141		44,869
Total operating lease liabilities	$	45,348	$	48,018

Finance leases:
Property and equipment, at cost	$	6,200	$	6,759
Accumulated amortization	(2,180)		(2,105)
Property and equipment, net	$	4,020	$	4,654

Current maturities of finance leases	$	489	$	528
Non-current maturities of finance leases	3,766		4,374
Total finance lease liabilities	$	4,255	$	4,902

Weighted average remaining lease term (in years):
Operating leases	12.3		12.5
Finance leases	8.4		8.8

Weighted average discount rate:
Operating leases	5.9%		5.8%
Finance leases	2.0%		2.0%

Current maturities of finance leases are included as a component of Other current liabilities on our Condensed Consolidated Balance Sheets. A summary of lease expenses for our finance and operating leases included in General, administrative, and marketing expenses on our Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income are as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Amortization of property and equipment	$	131	$	155	$	268	$	310
Interest expense on finance leases	22		28		47		57
Total finance lease expense	153		183		315		367
Operating lease expense	1,883		1,809		3,803		3,575
Sublease income	(91)		(92)		(183)		(216)
Total lease expense	$	1,945	$	1,900	$	3,935	$	3,726

A summary of our cash flow information related to leases is as follows (in thousands):


	Six Months Ended June 30,
Cash paid for amounts included in the measurement of lease liabilities:	2022		2021
Operating cash flows for operating leases	$	3,210	$	2,957
Financing cash flows for finance leases	244		306
Operating cash flows for finance leases	44		57

Future minimum lease payments and sublease rental income are as follows (in thousands):


	Finance Leases		Operating Leases		Sublease Income
Remainder of 2022	$	268	$	2,506	$	122
2023	575		5,606		—
2024	570		6,198		—
2025	549		5,124		—
2026	531		4,703		—
Thereafter	2,127		41,447		—
Total minimum lease payments	$	4,620	$	65,584	$	122
Less amount representing interest	(365)		(20,236)
Present value of net minimum lease payments	4,255		45,348
Less current maturities	(489)		(3,207)
Lease liabilities, less current maturities	$	3,766	$	42,141