Leases

6 Months Ended

Jun. 30, 2022

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 non-lease 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)	2022		2021		2022		2021
Finance lease cost:
Amortization of right-of-use assets (included in depreciation expense)	$	24	$	202	$	48	$	396
Interest on lease liabilities		7		83		15		175
Operating lease cost		4,425		3,802		8,699		7,596
Short-term lease cost		64		101		144		191
Variable lease cost		473		447		942		914
Total lease cost	$	4,993	$	4,635	$	9,848	$	9,272


	Six Months Ended
(in thousands)	June 30, 2022		June 30, 2021
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for finance lease	$	15	$	194
Operating cash flows used for operating leases	$	9,328	$	8,372
Financing cash flows used for finance lease	$	82	$	793
Right-of-use assets obtained in exchange for new operating lease liabilities	$	10,683	$	15,819

The lease assets and liabilities as of June 30, 2022 and December 31, 2021 were as follows (in thousands):


	June 30,			December 31,
	2022			2021
Finance lease right-of-use assets (included in other assets)	$	712		$	760
Operating lease right-of-use assets	$	98,580		$	99,158
Finance lease liability, current (included in current installments of long-term debt)	$	169		$	165
Finance lease liability, noncurrent (included in long-term debt)	$	443		$	529
Operating lease liabilities, current (included in accrued liabilities)	$	12,359		$	13,465
Operating lease liabilities, noncurrent	$	90,936		$	90,878
Weighted average remaining lease term – finance leases	3.4 years			3.9 years
Weighted average remaining lease term – operating leases	10.1 years			10.0 years
Weighted average discount rate – finance leases		4.8	%		4.8	%
Weighted average discount rate – operating leases		4.1	%		4.1	%

Future annual minimum lease payments and finance lease commitments as of June 30, 2022 were as follows (in thousands):


Year ending December 31,	Operating Leases			Finance Leases
2022 (remaining six months)		7,607			97
2023		14,639			194
2024		13,280			194
2025		12,756			178
2026		11,393			—
2027 and thereafter		67,718			—
Total minimum lease payments	$	127,393		$	663
Less: imputed interest		(24,098	)		(51	)
Present value of lease liabilities	$	103,295		$	612

As of June 30, 2022, the Company’s future operating leases that have not yet commenced include a new facility lease in an existing location in the Americas which expires 2032 and contains renewal options. The aggregate initial annual minimum lease payments of this lease is approximately $2.4 million.