Leases

9 Months Ended

Sep. 30, 2023

Leases 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.

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


Operating leases:	September 30, 2023		December 31, 2022
Operating lease right-of-use assets	$	59,975	$	56,061
Accumulated amortization	(16,630)		(14,202)
Operating lease right-of-use assets, net	$	43,345	$	41,859

Current maturities of operating leases	$	3,940	$	3,308
Non-current maturities of operating leases	42,862		41,257
Total operating lease liabilities	$	46,802	$	44,565

Finance leases:
Property and equipment, at cost	$	6,421	$	6,408
Accumulated amortization	(2,869)		(2,498)
Property and equipment, net	$	3,552	$	3,910

Current maturities of finance leases	$	529	$	513
Non-current maturities of finance leases	3,272		3,644
Total finance lease liabilities	$	3,801	$	4,157

Weighted average remaining lease term (in years):
Operating leases	10.7		11.9
Finance leases	7.1		7.8

Weighted average discount rate:
Operating leases	6.3%		5.9%
Finance leases	2.1%		2.1%

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 was as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Amortization of property and equipment	$	136	$	127	$	400	$	395
Interest expense on finance leases	20		22		62		69
Total finance lease expense	156		149		462		464
Operating lease expense	1,836		1,853		5,467		5,656
Sublease income	(87)		(92)		(101)		(275)
Total lease expense	$	1,905	$	1,910	$	5,828	$	5,845

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


	Nine Months Ended September 30,
Cash paid for amounts included in the measurement of lease liabilities:	2023		2022
Operating cash flows for operating leases	$	5,422	$	4,939
Financing cash flows for finance leases	396		346
Operating cash flows for finance leases	62		62

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


	Finance Leases		Operating Leases
Remainder of 2023	$	139	$	1,460
2024	606		6,119
2025	585		6,652
2026	567		6,162
2027	557		5,865
Thereafter	1,626		39,441
Total minimum lease payments	$	4,080	$	65,699
Less amount representing interest	(279)		(18,897)
Present value of net minimum lease payments	3,801		46,802
Less current maturities	(529)		(3,940)
Lease liabilities, less current maturities	$	3,272	$	42,862