Leases (Notes)

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Lessee, Operating and Finance Lease

LEASES

We determine if an arrangement is a lease at inception. Our operating lease assets are separately stated in operating lease right-of-use ("ROU") assets and our financing lease assets are included in other assets on our consolidated balance sheets. Our lease liabilities are included in accrued liabilities and other long-term liabilities on our consolidated balance sheets. We have elected not to recognize an ROU asset and lease liability for leases with terms of twelve months or less.

Lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. Most of our leases do not provide an implicit rate, therefore we use our incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term based on the information available at commencement date. Our lease ROU assets exclude lease incentives and initial direct costs incurred. Our lease terms include options to extend when it is reasonably certain that we will exercise that option. All of our leases have stated lease payments, which may include fixed rental increases.

Our leases are for corporate, research and development and sales and support offices, manufacturing and distribution facilities, device service centers and certain equipment. Our leases have original lease terms of one year to fifteen years, some of which include options to extend the leases for up to an additional five years. For all of our leases, we do not include optional periods of extension in our current lease terms because we determined the exercise of options to extend is not reasonably certain.    

The following table presents the components of our lease cost (in thousands):

	Year ended December 31,
	2024		2023		2022
Operating lease cost	$	22,037	$	24,024	$	22,038
Finance lease cost — interest	182		125		112
Finance lease cost — reduction of ROU asset	1,158		1,035		712
Short-term lease cost	9		29		7
Total lease cost	$	23,386	$	25,213	$	22,869

Interest expense on our finance leases is included in interest expense, net in our consolidated statements of operations. The reduction of the operating and finance ROU assets is included as noncash lease expense in costs of goods sold and selling, general and administrative expenses in our consolidated statements of operations.

The following table presents the supplemental cash flow information related to our leases (in thousands):

	Year ended December 31,
	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	24,251	$	24,604	$	25,225
Operating cash flows from finance leases	$	182	$	125	$	112
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	12,580	$	15,873	$	5,994
Finance leases	$	1,809	$	1,028	$	715

The following table presents the supplemental balance sheet information related to our operating leases (in thousands, except lease term and discount rate):

	As of December 31,
	2024			2023
Operating leases
Operating lease right-of-use assets	$	53,295		$	69,909
Accrued liabilities	$	15,695		$	20,161
Other long-term liabilities	40,777			52,972
Total operating lease liabilities	$	56,472		$	73,133
Weighted-Average Remaining Lease Term
Operating leases	5.8 years			5.6 years
Weighted-Average Discount Rate
Operating leases	4.90		%	4.31		%

The following table presents the supplemental balance sheet information related to our finance leases (in thousands, except lease term and discount rate):

	As of December 31,
	2024			2023
Finance leases
Other assets	$	3,259		$	2,707
Accrued liabilities	$	1,066		$	860
Other long-term liabilities	2,332			1,954
Total finance lease liabilities	$	3,398		$	2,814
Weighted-Average Remaining Lease Term
Finance leases	3.5 years			4.1 years
Weighted-Average Discount Rate
Finance leases	5.63		%	4.93		%

As of December 31, 2024, the maturities of our operating and finance lease liabilities for each of the next five years are approximately (in thousands):

	Operating Leases		Finance Leases
2025	$	17,996	$	1,215
2026	13,506		1,104
2027	9,093		759
2028	6,612		420
2029	5,280		197
Thereafter	11,620		47
Total Lease Payments	64,107		3,742
Less imputed interest	(7,635)		(344)
Total	$	56,472	$	3,398