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Leases
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Leases Leases
The Company's operating and finance lease right-of-use ("ROU") assets and liabilities as of June 30, 2023 and December 31, 2022 consisted of the following items (in thousands):
As of
LeasesJune 30, 2023December 31, 2022
Operating Leases
Operating lease right-of-use assets, net of accumulated amortization (1)
$11,292 $7,734 
Operating lease obligations, current$2,375 $2,724 
Long-term operating lease obligations9,006 5,133 
Total operating lease obligation$11,381 $7,857 
Finance Leases
Finance lease right-of-use assets, net of accumulated amortization (2)
$2,120 $2,565 
Finance lease obligations, current$1,119 $1,131 
Long-term finance lease obligations2,885 3,450 
Total finance lease obligations$4,004 $4,581 
(1) Operating lease ROU assets are reported net of accumulated amortization of $4.5 million and $4.4 million as of June 30, 2023 and December 31, 2022, respectively.
(2) Finance lease ROU assets are reported net of accumulated amortization of $2.4 million and $2.0 million as of June 30, 2023 and December 31, 2022, respectively.
Operating leases
ROU assets under operating leases and operating lease liabilities are included in the "Other long-term assets" and "Other current liabilities" and "Other long-term liabilities" line items, respectively, in the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022.
Lease expense for operating leases for the three and six months ended June 30, 2023 was $1.3 million and $2.7 million, respectively, of which $1.1 million and $2.2 million, respectively, is included in the "Consumables - cost of revenue, exclusive of depreciation and amortization" line item, and $0.2 million and $0.5 million, respectively, is included in the "General and administrative" line item in the Condensed Consolidated Statements of Operations for those periods. Lease expense for operating leases for the three and six months ended June 30, 2022 was $1.0 million and $2.0 million, respectively, of which $0.9 million and $1.8 million, respectively, is included in the "Consumables - cost of revenue, exclusive of depreciation and amortization" line item, and $0.1 million and $0.2 million, respectively, is included in the "General and administrative" line item in the Condensed Consolidated Statements of Operations for those periods.
Finance leases
ROU assets under finance leases are included in the "Property, plant and equipment" line item in the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022. Interest expense related to finance lease obligations and amortization of ROU assets under finance leases are included in the "Interest expense" and "Depreciation, amortization, depletion and accretion" line items, respectively, in the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022.
Lease financial information as of and for the three and six months ended June 30, 2023 and 2022 is provided in the following table:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2023202220232022
Finance lease cost:
Amortization of right-of-use assets$223 $230 $446 $371 
Interest on lease liabilities63 86 131 164 
Operating lease cost1,035 778 2,017 1,584 
Short-term lease cost242 216 651 459 
Variable lease cost (1)
56 3 64 7 
Total lease cost$1,619 $1,313 $3,309 $2,585 
Other Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for finance leases$131 $164 
Operating cash flows for operating leases$1,483 $1,419 
Financing cash flows for finance leases$577 $594 
Right-of-use assets obtained in exchange for new finance lease liabilities$— $1,641 
Right-of-use assets obtained in exchange for new operating lease liabilities$1,881 $3,418 
Weighted-average remaining lease term - finance leases2.3 years3.2 years
Weighted-average remaining lease term - operating leases7.7 years4.3 years
Weighted-average discount rate - finance leases5.9 %5.9 %
Weighted-average discount rate - operating leases11.0 %5.9 %
(1) Primarily includes common area maintenance, property taxes and insurance payable to lessors.
Leases Leases
The Company's operating and finance lease right-of-use ("ROU") assets and liabilities as of June 30, 2023 and December 31, 2022 consisted of the following items (in thousands):
As of
LeasesJune 30, 2023December 31, 2022
Operating Leases
Operating lease right-of-use assets, net of accumulated amortization (1)
$11,292 $7,734 
Operating lease obligations, current$2,375 $2,724 
Long-term operating lease obligations9,006 5,133 
Total operating lease obligation$11,381 $7,857 
Finance Leases
Finance lease right-of-use assets, net of accumulated amortization (2)
$2,120 $2,565 
Finance lease obligations, current$1,119 $1,131 
Long-term finance lease obligations2,885 3,450 
Total finance lease obligations$4,004 $4,581 
(1) Operating lease ROU assets are reported net of accumulated amortization of $4.5 million and $4.4 million as of June 30, 2023 and December 31, 2022, respectively.
(2) Finance lease ROU assets are reported net of accumulated amortization of $2.4 million and $2.0 million as of June 30, 2023 and December 31, 2022, respectively.
Operating leases
ROU assets under operating leases and operating lease liabilities are included in the "Other long-term assets" and "Other current liabilities" and "Other long-term liabilities" line items, respectively, in the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022.
Lease expense for operating leases for the three and six months ended June 30, 2023 was $1.3 million and $2.7 million, respectively, of which $1.1 million and $2.2 million, respectively, is included in the "Consumables - cost of revenue, exclusive of depreciation and amortization" line item, and $0.2 million and $0.5 million, respectively, is included in the "General and administrative" line item in the Condensed Consolidated Statements of Operations for those periods. Lease expense for operating leases for the three and six months ended June 30, 2022 was $1.0 million and $2.0 million, respectively, of which $0.9 million and $1.8 million, respectively, is included in the "Consumables - cost of revenue, exclusive of depreciation and amortization" line item, and $0.1 million and $0.2 million, respectively, is included in the "General and administrative" line item in the Condensed Consolidated Statements of Operations for those periods.
Finance leases
ROU assets under finance leases are included in the "Property, plant and equipment" line item in the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022. Interest expense related to finance lease obligations and amortization of ROU assets under finance leases are included in the "Interest expense" and "Depreciation, amortization, depletion and accretion" line items, respectively, in the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022.
Lease financial information as of and for the three and six months ended June 30, 2023 and 2022 is provided in the following table:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2023202220232022
Finance lease cost:
Amortization of right-of-use assets$223 $230 $446 $371 
Interest on lease liabilities63 86 131 164 
Operating lease cost1,035 778 2,017 1,584 
Short-term lease cost242 216 651 459 
Variable lease cost (1)
56 3 64 7 
Total lease cost$1,619 $1,313 $3,309 $2,585 
Other Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for finance leases$131 $164 
Operating cash flows for operating leases$1,483 $1,419 
Financing cash flows for finance leases$577 $594 
Right-of-use assets obtained in exchange for new finance lease liabilities$— $1,641 
Right-of-use assets obtained in exchange for new operating lease liabilities$1,881 $3,418 
Weighted-average remaining lease term - finance leases2.3 years3.2 years
Weighted-average remaining lease term - operating leases7.7 years4.3 years
Weighted-average discount rate - finance leases5.9 %5.9 %
Weighted-average discount rate - operating leases11.0 %5.9 %
(1) Primarily includes common area maintenance, property taxes and insurance payable to lessors.