Leases

9 Months Ended

Sep. 30, 2023

The Company has various operating lease agreements for office space, warehouses, manufacturing, and production locations as well as vehicles and other equipment. Our real estate leases have remaining lease terms of one to ten years. We exclude options that are not reasonably certain to be exercised from our lease terms, ranging from one to five years. Our lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms. For certain leases, we receive incentives from our landlords, such as rent abatements, which effectively reduce the total lease payments owed for these leases. Vehicle and other equipment operating leases have terms between one and five years.

Our financing leases relate to research equipment, machinery, and other equipment.

The table below presents certain information related to the weighted average discount rate and weighted average remaining lease term for the Company’s leases as of September 30, 2023 and December 31, 2022:


	September 30,		December 31,
(In thousands)	2023		2022
Weighted average discount rate - operating leases	4.3	%	4.2	%
Weighted average discount rate - finance leases	8.3	%	6.1	%
Weighted average remaining lease term in years - operating leases	6.5		7.2
Weighted average remaining lease term in years - finance leases	4.3		2.0

The components of lease expense for the three and nine months ended September 30, 2023 and 2022 were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2023		2022		2023		2022
Operating lease costs	$	883	$	909	$	2,679	$	2,745
Short-term lease costs	560		534		1,410		1,627
Total operating lease costs	1,443		1,443		4,089		4,372

Variable lease costs	299		250		903		809
Total lease costs	$	1,742	$	1,693	$	4,992	$	5,181

Maturities of our lease liabilities as of September 30, 2023 are as follows:


(In thousands)	Operating Leases		Financing Leases
2023 (3 months remaining)	$	909	$	134
2024	3,383		487
2025	2,942		424
2026	2,532		389
2027	2,280		387
Thereafter	6,938		134
Total lease payments	18,984		1,955
Less: interest	(2,401)		(307)
Total present value of lease liabilities	$	16,583	$	1,648

Leases

Our financing leases relate to research equipment, machinery, and other equipment.


	September 30,		December 31,
(In thousands)	2023		2022
Weighted average discount rate - operating leases	4.3	%	4.2	%
Weighted average discount rate - finance leases	8.3	%	6.1	%
Weighted average remaining lease term in years - operating leases	6.5		7.2
Weighted average remaining lease term in years - finance leases	4.3		2.0

The components of lease expense for the three and nine months ended September 30, 2023 and 2022 were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2023		2022		2023		2022
Operating lease costs	$	883	$	909	$	2,679	$	2,745
Short-term lease costs	560		534		1,410		1,627
Total operating lease costs	1,443		1,443		4,089		4,372

Variable lease costs	299		250		903		809
Total lease costs	$	1,742	$	1,693	$	4,992	$	5,181

Maturities of our lease liabilities as of September 30, 2023 are as follows:


(In thousands)	Operating Leases		Financing Leases
2023 (3 months remaining)	$	909	$	134
2024	3,383		487
2025	2,942		424
2026	2,532		389
2027	2,280		387
Thereafter	6,938		134
Total lease payments	18,984		1,955
Less: interest	(2,401)		(307)
Total present value of lease liabilities	$	16,583	$	1,648