LEASES AND RELATED PARTY LEASES

9 Months Ended

Sep. 30, 2023

The Company leases administrative, manufacturing, research and distribution facilities and vehicles through operating lease agreements. The Company has no finance leases as of September 30, 2023. Many of the Company's leases include both lease (e.g., fixed payments including rent) and non-lease components (e.g., common-area or other maintenance costs). For vehicles, the Company has elected the practical expedient to group lease and non-lease components.

Most facility leases include one or more options to renew. The exercise of lease renewal options is typically at the Company's sole discretion, therefore, the majority of renewals to extend the lease terms are not included in the Right of Use ("ROU") assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates renewal options and when they are reasonably certain of exercise, the renewal period is included in the lease term.

As most of the Company's leases do not provide an implicit rate, the Company uses a collateralized incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments.

Total operating lease expense for the nine months ended September 30, 2023 and September 30, 2022 was $17.9 million and $16.6 million respectively, which includes $0.2 million, in related party operating lease expense.

Supplemental balance sheet information related to operating leases were as follows:


Dollars in thousands, except lease term and discount rate	September 30, 2023			December 31, 2022
ROU assets	$	156,760		$	148,284

Current lease liabilities	14,461			14,624
Non-current lease liabilities	168,017			157,420
Total lease liabilities	$	182,478		$	172,044

Weighted average remaining lease term (in years):
Leased facilities	16.6 years			16.9 years
Leased vehicles	2.0 years			2.0 years

Weighted average discount rate:
Leased facilities	5.5		%	5.4		%
Leased vehicles	2.6		%	2.7		%

Supplemental cash flow information related to leases for the nine months ended September 30, 2023 and 2022 were as follows:


Dollars in thousands	September 30, 2023		September 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	14,778	$	12,804

ROU assets obtained in exchange for lease liabilities:
Operating leases	$	19,540	$	75,588

Future minimum lease payments under operating leases at September 30, 2023 were as follows:


Dollars in thousands	Related Parties		Third Parties		Total
Remainder of 2023	$	74	$	5,415	$	5,489
2024	296		21,821		22,117
2025	296		20,968		21,264
2026	296		18,147		18,443
2027	296		17,901		18,197
2028	296		15,740		16,036
Thereafter	246		173,735		173,981
Total minimum lease payments	$	1,800	$	273,727	$	275,527
Less: Imputed interest					93,049
Total lease liabilities					182,478
Less: Current lease liabilities					14,461
Long-term lease liabilities					168,017

There were no future minimum lease payments under finance leases at September 30, 2023.

Related Party Leases

The Company leases its manufacturing facility in Plainsboro, New Jersey, from a general partnership that is 50% owned by a principal stockholder of the Company. The term of the current lease agreement is through October 31, 2029 at an annual rate of approximately $0.3 million. The current lease agreement also provides (i) a 5-year renewal option for the Company to extend the lease from November 1, 2029 through October 31, 2034 at the fair market rental rate of the premises, and (ii) another 5-year renewal option to extend the lease from November 1, 2034 through October 31, 2039 at the fair market rental rate of the premises.