Leases

6 Months Ended

Jun. 30, 2021

Note 6 – Leases

The Company determines if a contract is or contains a lease at inception. The Company has entered into leases for certain facilities, vehicles and other equipment. The Company’s leases consist mainly of operating leases which expire at various dates through 2036. Variable lease payments are generally expensed as incurred and include certain index-based changes in rent, certain nonlease components, such as maintenance and other services provided by the lessor, and other charges included in the lease.

The components of lease expense were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2021		2020		2021		2020
Finance lease cost:
Amortization of right-of-use assets (included in depreciation expense)	$	202	$	177	$	396	$	355
Interest on lease liabilities		83		109		175		227
Operating lease cost		3,802		3,997		7,596		8,138
Short-term lease cost		101		137		191		378
Variable lease cost		447		406		914		916
Total lease cost	$	4,635	$	4,826	$	9,272	$	10,014



	Six Months Ended
(in thousands)	June 30, 2021		June 30, 2020
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for finance lease	$	194	$	244
Operating cash flows used for operating leases	$	8,372	$	7,897
Financing cash flows used for finance lease	$	793	$	642
Right-of-use assets obtained in exchange for new operating lease liabilities	$	15,819	$	4,504

The lease assets and liabilities as of June 30, 2021 and December 31, 2020 were as follows (in thousands):


	June 30,			December 31,
	2021			2020
Finance lease right-of-use assets (included in other assets)	$	2,052		$	2,448
Operating lease right-of-use assets	$	89,567		$	79,966
Finance lease liability, current (included in current installments of long-term debt)	$	1,759		$	1,661
Finance lease liability, noncurrent (included in long-term debt)	$	1,940		$	2,832
Operating lease liabilities, current (included in accrued liabilities)	$	12,172		$	11,516
Operating lease liabilities, noncurrent	$	80,580		$	72,120
Weighted average remaining lease term – finance leases	2.5 years			3.0 years
Weighted average remaining lease term – operating leases	9.9 years			10.0 years
Weighted average discount rate – finance leases		9.0	%		9.0	%
Weighted average discount rate – operating leases		4.2	%		4.4	%

Future annual minimum lease payments and finance lease commitments as of June 30, 2021 were as follows (in thousands):


Year ending December 31,	Operating Leases			Finance Leases
2021 (remaining six months)	$	7,409		$	1,009
2022		14,494			2,046
2023		13,259			659
2024		11,936			194
2025		10,937			178
2026 and thereafter		56,853			—
Total minimum lease payments	$	114,888		$	4,086
Less: imputed interest		(22,136	)		(387	)
Present value of lease liabilities	$	92,752		$	3,699

As of June 30, 2021, the Company’s future operating leases that have not yet commenced are immaterial.