LEASES AND COMMITMENTS

12 Months Ended

Dec. 31, 2023

LEASES AND COMMITMENTS

LEASES AND COMMITMENTS

12. LEASES AND COMMITMENTS:

Facilities and Leases

The Company owns its main executive, administrative, manufacturing and technical offices in San Jose, California. The Company also owns a research and development facility in New Jersey, a design center in Germany and a multipurpose office building in Switzerland. The Company’s leases consist of operating leases for administrative office spaces, research-and-development facilities and sales offices in various countries around the world. The Company determines whether an arrangement is a lease at inception. Some lease agreements contain lease and non-lease components, which are accounted for as a single lease component. Total lease expense was $3.6 million for the year ended December 31, 2023, and $3.3 million in both the years ended December 31, 2022 and 2021; short-term and variable lease expenses were not material during these periods.

Balance sheet information related to leases was as follows:

		December 31,		December 31,
(In thousands)	Balance Sheet Classification	2023		2022
Right-of-use assets
Operating lease assets	Other assets	$	10,398	$	9,153
Lease liabilities
Current operating lease liabilities	Other accrued liabilities	$	2,626	$	2,895
Non-current operating lease liabilities	Other liabilities		7,354		5,831
Total		$	9,980	$	8,726

Initial lease terms are determined at commencement and may include options to extend or terminate the lease when it is reasonably certain the Company will exercise the option. Remaining lease terms range from one to six years,

some of which include options to extend for up to five years, and some of which include options to terminate within one year. Leases with an initial term of twelve months or less are not recorded on the balance sheet. As the Company’s leases do not provide an implicit rate, the present value of future lease payments is determined using the Company’s incremental borrowing rate based on information available at commencement date.

	December 31,		December 31,
Lease term and discount rate	2023		2022
Weighted average remaining lease term	3.8	years	4.0	years
Weighted average discount rate	6.1	%	4.6	%

Supplemental cash flows information related to leases was as follow:

	Year Ended December 31,
(In thousands)	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,579	$	3,245
Right-of-use assets obtained in exchange for new operating lease obligations	$	4,889	$	1,795

Future minimum lease payments under all non-cancelable lease agreements as of December 31, 2023, are as follows:

	December 31,
(In thousands)	2023
2024	$	3,168
2025		3,103
2026		2,514
2027		1,359
2028		852
Thereafter		243
Total future minimum lease payments		11,239
Less imputed interest		(1,259)
Total	$	9,980

Purchase Obligations

At December 31, 2023, the Company had no non-cancelable purchase obligations that were due beyond one year.