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Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases Leases
Lessee Information

We have operating leases for our digital treatment planning and office facilities, retail spaces, vehicles and office equipment. The components of lease expenses consist of following (in thousands):
Year Ended December 31,
Lease Cost202320222021
Operating lease cost 1
$44,614 $37,919 $33,241 
Variable lease cost 2
16,013 22,084 11,134 
Total lease cost $60,627 $60,003 $44,375 
1    Includes expense associated with short term leases of less than 12 months which is not material
2    Includes payments related to agreements with embedded leases that are not otherwise reflected on the balance sheet. These costs are primarily associated with our manufacturing supply arrangements and fluctuate based on factory output and material price changes.

The following table provides a summary of our operating lease terms and discount rates:
December 31,
Remaining Lease Term and Discount Rate20232022
Weighted average remaining lease term (in years)6.27.2
Weighted average discount rate 3.7 %3.5 %
As of December 31, 2023, the future payments related to our operating lease liabilities are as follows (in thousands):
Fiscal Year Ending December 31,Operating Leases
2024$33,838 
202528,381 
202622,449 
202716,933 
202812,746 
Thereafter25,901 
Total lease payments140,248 
Less: Imputed interest(13,629)
Total lease liabilities$126,619 

As of December 31, 2023, we had additional leases that have not yet commenced with future lease payments of $13.3 million. These leases will commence during 2024 with non-cancelable lease terms of two to five years.

Lessor Information

We lease iTero intraoral scanners to customers which are classified as operating leases. Our portfolio of leased iTero scanners included in Property, plant and equipment, net are as follows:

December 31,
20232022
Scanners under operating leases, gross$27,145 $22,914 
Less: accumulated depreciation(9,815)(3,919)
Scanners under operating leases, net$17,330 $18,995 

As of December 31, 2023, the future lease payments due to us are as follows (in thousands):
Fiscal Year Ending December 31,Operating Leases
2024$22,737 
202518,170 
20268,908 
Total lease payments$49,815 

For the year ended December 31, 2023 and 2022, operating lease income was $16.6 million and $12.3 million, respectively and for the year ended December 31, 2021, operating lease income was not material. Operating lease income is recorded in net revenues in our Consolidated Statements of Operations.
Leases Leases
Lessee Information

We have operating leases for our digital treatment planning and office facilities, retail spaces, vehicles and office equipment. The components of lease expenses consist of following (in thousands):
Year Ended December 31,
Lease Cost202320222021
Operating lease cost 1
$44,614 $37,919 $33,241 
Variable lease cost 2
16,013 22,084 11,134 
Total lease cost $60,627 $60,003 $44,375 
1    Includes expense associated with short term leases of less than 12 months which is not material
2    Includes payments related to agreements with embedded leases that are not otherwise reflected on the balance sheet. These costs are primarily associated with our manufacturing supply arrangements and fluctuate based on factory output and material price changes.

The following table provides a summary of our operating lease terms and discount rates:
December 31,
Remaining Lease Term and Discount Rate20232022
Weighted average remaining lease term (in years)6.27.2
Weighted average discount rate 3.7 %3.5 %
As of December 31, 2023, the future payments related to our operating lease liabilities are as follows (in thousands):
Fiscal Year Ending December 31,Operating Leases
2024$33,838 
202528,381 
202622,449 
202716,933 
202812,746 
Thereafter25,901 
Total lease payments140,248 
Less: Imputed interest(13,629)
Total lease liabilities$126,619 

As of December 31, 2023, we had additional leases that have not yet commenced with future lease payments of $13.3 million. These leases will commence during 2024 with non-cancelable lease terms of two to five years.

Lessor Information

We lease iTero intraoral scanners to customers which are classified as operating leases. Our portfolio of leased iTero scanners included in Property, plant and equipment, net are as follows:

December 31,
20232022
Scanners under operating leases, gross$27,145 $22,914 
Less: accumulated depreciation(9,815)(3,919)
Scanners under operating leases, net$17,330 $18,995 

As of December 31, 2023, the future lease payments due to us are as follows (in thousands):
Fiscal Year Ending December 31,Operating Leases
2024$22,737 
202518,170 
20268,908 
Total lease payments$49,815 

For the year ended December 31, 2023 and 2022, operating lease income was $16.6 million and $12.3 million, respectively and for the year ended December 31, 2021, operating lease income was not material. Operating lease income is recorded in net revenues in our Consolidated Statements of Operations.