Leases

6 Months Ended

Jun. 30, 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 were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2023		2022		2023		2022
Finance lease cost:
Amortization of right-of-use assets (included in depreciation expense)	$	24	$	24	$	48	$	48
Interest on lease liabilities		5		7		11		15
Operating lease cost		4,335		4,425		8,906		8,699
Short-term lease cost		150		64		290		144
Variable lease cost		436		473		892		942
Total lease cost	$	4,950	$	4,993	$	10,147	$	9,848


	Six Months Ended June 30,
(in thousands)	2023		2022
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for finance lease	$	11	$	15
Operating cash flows used for operating leases	$	8,820	$	9,328
Financing cash flows used for finance lease	$	86	$	82
Right-of-use assets obtained in exchange for new operating lease liabilities	$	6,401	$	10,683

The lease assets and liabilities as of June 30, 2023 and December 31, 2022 were as follows (in thousands):


	June 30,			December 31,
	2023			2022
Finance lease right-of-use assets (included in other assets)	$	—		$	664
Operating lease right-of-use assets	$	92,657		$	93,081
Finance lease liability, current (included in current installments of long-term debt)	$	177		$	173
Finance lease liability, noncurrent (included in long-term debt)	$	266		$	355
Operating lease liabilities, current (included in accrued liabilities)	$	13,196		$	12,020
Operating lease liabilities, noncurrent	$	85,343		$	86,687
Weighted average remaining lease term – finance leases	2.4 years			2.9 years
Weighted average remaining lease term – operating leases	9.1 years			9.8 years
Weighted average discount rate – finance leases		4.8	%		4.8	%
Weighted average discount rate – operating leases		4.2	%		4.1	%

Future annual minimum lease payments and finance lease commitments as of June 30, 2023 were as follows (in thousands):


Year ending December 31,	Operating Leases			Finance Leases
2023 (remaining six months)		8,763			97
2024		16,736			194
2025		15,713			178
2026		12,278			—
2027		11,158			—
2028 and thereafter		58,190			—
Total minimum lease payments	$	122,838		$	469
Less: imputed interest		(24,299	)		(26	)
Present value of lease liabilities	$	98,539		$	443

As of June 30, 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 2034 and contains renewal options. The aggregate initial annual minimum lease payments of this lease are approximately $2.7 million.