Leases

3 Months Ended

Mar. 31, 2023

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 for the three months ended March 31, 2023 and 2022 were as follows:


	Three Months Ended March 31,
(in thousands)	2023		2022
Finance lease cost:
Amortization of right-of-use assets (included in depreciation expense)	$	24	$	24
Interest on lease liabilities		6		8
Operating lease cost		4,571		4,274
Short-term lease cost		140		80
Variable lease cost		456		469
Total lease cost	$	5,197	$	4,855


Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for finance lease	$	6	$	8
Operating cash flows used for operating leases	$	4,435	$	5,316
Financing cash flows used for finance lease	$	43	$	41
Right-of-use assets obtained in exchange for new operating lease liabilities	$	5,406	$	634

The lease assets and liabilities as of March 31, 2023 and December 31, 2022 were as follows (in thousands):


	March 31,			December 31,
	2023			2022
Finance lease right-of-use assets (included in other assets)	$	640		$	664
Operating lease right-of-use assets	$	95,156		$	93,081
Finance lease liability, current (included in current installments of long-term debt)	$	175		$	173
Finance lease liability, noncurrent (included in long-term debt)	$	311		$	355
Operating lease liabilities, current (included in accrued liabilities)	$	13,314		$	12,020
Operating lease liabilities, noncurrent	$	87,561		$	86,687
Weighted average remaining lease term – finance leases	2.7 years			2.9 years
Weighted average remaining lease term – operating leases	9.3 years			9.8 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 March 31, 2023 were as follows (in thousands):


Year ending December 31,	Operating Leases			Finance Leases
2023 (remaining nine months)		12,650			145
2024		15,641			194
2025		14,837			178
2026		11,511			—
2027		10,406			—
2028 and thereafter		57,617			—
Total minimum lease payments	$	122,662		$	517
Less: imputed interest		(21,787	)		(31	)
Present value of lease liabilities	$	100,875		$	486

As of March 31, 2023, 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.