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Leases
 6 Months Ended
Jun. 30, 2022
Leases [Abstract]  
LEASES LEASES
We have operating leases for office space, laboratory operations, research and development facilities, manufacturing locations, warehouses and certain equipment. We determine if a contract contains a lease at inception or modification of a contract. Our leases generally do not provide an implicit interest rate, and we therefore use our incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease within a particular currency environment. We used the incremental borrowing rates as of January 1, 2019 for operating leases that commenced prior to that date. Many of our leases contain rental escalation, renewal options and/or termination options that are factored into our determination of lease payments as appropriate. Variable lease payment amounts that cannot be determined at the commencement of the lease are not included in the right-to-use assets or liabilities.
We elected the use of permitted practical expedients of not recording leases on our Consolidated Balance Sheet when the leases have terms of 12 months or less, and we elected not to separate nonlease components from lease components and instead account for each separate lease component and the nonlease components associated with that lease component as a single lease component.
The following table presents the lease balances within the Condensed Consolidated Balance Sheet as of June 30, 2022 and December 31, 2021:
(in thousands)Classification on the Balance SheetJune 30, 2022December 31, 2021
Assets
Operating lease assetsOperating lease right-of-use assets$42,412 $44,228 
Finance lease assetsProperty, plant and equipment, net7,213 5,181 
Liabilities
Current
Operating lease liabilitiesCurrent maturities of operating leases12,122 11,624 
Accrued expensesCurrent maturities of finance leases2,625 2,257 
Long-term
Operating lease liabilitiesOperating lease liabilities30,876 33,097 
Other long-term liabilitiesFinance lease liabilities$4,588 $2,924 
Weighted average remaining lease term
Operating leases6.4 years7.2 years
Finance leases3.2 years2.4 years
Weighted average discount rate
Operating leases3.7 %4.6 %
Finance leases7.0 %4.8 %
The following table reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total operating lease liabilities recognized on our Condensed Consolidated Balance Sheet as of June 30, 2022:
(in thousands)OperatingFinance
July 1, 2022 through December 31, 2022$6,322 $1,528 
202310,399 2,430 
20247,025 1,829 
20254,541 1,291 
20263,654 636 
Thereafter15,493 2 
Total undiscounted future minimum lease payments47,434 7,716 
Less: Difference between lease payments and discounted lease liabilities4,436 503 
Total lease liabilities$42,998 $7,213 
Expense under operating leases and finance leases was $8.4 million and $1.9 million, respectively, for the six months ended June 30, 2022, which includes $1.3 million of variable lease costs. Expense under operating leases and finance leases was $9.1 million and $1.1 million, respectively, for the six months ended June 30, 2021, which includes $1.4 million of variable lease costs. Operating lease costs and finance lease costs are included within Operating loss in the Condensed Consolidated Statement of Operations. Short-term lease costs were not material.
Supplemental cash flow information is as follows:
(in thousands)For the six months ended June 30,
20222021
Operating cash out flows from operating leases$8,327 $6,484 
Operating cash out flows from finance leases52 45 
Financing cash out flows from finance leases724 769 
Total$9,103 $7,298 
LEASES LEASES
We have operating leases for office space, laboratory operations, research and development facilities, manufacturing locations, warehouses and certain equipment. We determine if a contract contains a lease at inception or modification of a contract. Our leases generally do not provide an implicit interest rate, and we therefore use our incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease within a particular currency environment. We used the incremental borrowing rates as of January 1, 2019 for operating leases that commenced prior to that date. Many of our leases contain rental escalation, renewal options and/or termination options that are factored into our determination of lease payments as appropriate. Variable lease payment amounts that cannot be determined at the commencement of the lease are not included in the right-to-use assets or liabilities.
We elected the use of permitted practical expedients of not recording leases on our Consolidated Balance Sheet when the leases have terms of 12 months or less, and we elected not to separate nonlease components from lease components and instead account for each separate lease component and the nonlease components associated with that lease component as a single lease component.
The following table presents the lease balances within the Condensed Consolidated Balance Sheet as of June 30, 2022 and December 31, 2021:
(in thousands)Classification on the Balance SheetJune 30, 2022December 31, 2021
Assets
Operating lease assetsOperating lease right-of-use assets$42,412 $44,228 
Finance lease assetsProperty, plant and equipment, net7,213 5,181 
Liabilities
Current
Operating lease liabilitiesCurrent maturities of operating leases12,122 11,624 
Accrued expensesCurrent maturities of finance leases2,625 2,257 
Long-term
Operating lease liabilitiesOperating lease liabilities30,876 33,097 
Other long-term liabilitiesFinance lease liabilities$4,588 $2,924 
Weighted average remaining lease term
Operating leases6.4 years7.2 years
Finance leases3.2 years2.4 years
Weighted average discount rate
Operating leases3.7 %4.6 %
Finance leases7.0 %4.8 %
The following table reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total operating lease liabilities recognized on our Condensed Consolidated Balance Sheet as of June 30, 2022:
(in thousands)OperatingFinance
July 1, 2022 through December 31, 2022$6,322 $1,528 
202310,399 2,430 
20247,025 1,829 
20254,541 1,291 
20263,654 636 
Thereafter15,493 2 
Total undiscounted future minimum lease payments47,434 7,716 
Less: Difference between lease payments and discounted lease liabilities4,436 503 
Total lease liabilities$42,998 $7,213 
Expense under operating leases and finance leases was $8.4 million and $1.9 million, respectively, for the six months ended June 30, 2022, which includes $1.3 million of variable lease costs. Expense under operating leases and finance leases was $9.1 million and $1.1 million, respectively, for the six months ended June 30, 2021, which includes $1.4 million of variable lease costs. Operating lease costs and finance lease costs are included within Operating loss in the Condensed Consolidated Statement of Operations. Short-term lease costs were not material.
Supplemental cash flow information is as follows:
(in thousands)For the six months ended June 30,
20222021
Operating cash out flows from operating leases$8,327 $6,484 
Operating cash out flows from finance leases52 45 
Financing cash out flows from finance leases724 769 
Total$9,103 $7,298