The Company is a lessee under leases of manufacturing facilities, office spaces, machinery, certain office equipment and vehicles. A majority of the Company’s leases are operating leases with remaining lease terms between one month and 12 years. Finance leases are immaterial to the Company’s consolidated financial statements. The Company determines if an arrangement qualifies as a lease and what type of lease it is at inception. The Company elected the package of practical expedients permitted under the transition guidance within the new lease standard, which among other things, allowed it to continue to account for existing leases based on the historical lease classification. The Company also elected the practical expedients to combine lease and non-lease components and to exclude right of use assets and lease liabilities for leases with an initial term of 12 months or less from the balance sheet.

Some of the lease agreements the Company enters into include Company options to either extend and/or early terminate the lease, the costs of which are included in the Company’s operating lease liabilities to the extent that such options are reasonably certain of being exercised. Leases with renewal options allow the Company to extend the lease term typically between 1 and 5 years per option, some of its leases have multiple options to extend. When determining if a renewal option is reasonably certain of being exercised, the Company considers several economic factors, including but not limited to, the significance of leasehold improvements incurred on the property, whether the asset is difficult to replace, underlying contractual obligations, or specific characteristics unique to that particular lease that would make it reasonably certain that the Company would exercise such options.

As of December 31, 2024 and 2023, operating lease right of use assets were $135.4 million and $115.5 million, respectively and operating lease liabilities were $160.7 million and $132.2 million, respectively. The addition of the Shrewsbury, Massachusetts lease and renewal of the Rancho Dominguez, California lease were the primary contributors to the change in the asset and liability balances. The Shrewsbury lease consists of 139,000 square foot of primarily warehouse space was added to the balance sheet on February 1, 2024 and has a future asset value of $13.7 million. The Rancho Dominguez lease consists of 72,000 square foot of primarily warehouse space added to the balance sheet on December 1, 2024 and has a future asset value of $13.0 million.

The maturities of the Company’s operating lease liabilities as of December 31, 2024 are as follows (amounts in thousands):


As of December 31, 2024	Amount
2025	$	24,530
2026		27,292
2027		25,854
2028		26,054
2029		25,928
2030 and thereafter		65,869
Total future minimum lease payments		195,527
Less lease incentives		(2,790	)
Less amount of lease payment representing interest		(32,057	)
Total operating lease liabilities	$	160,680

Total operating lease liabilities included on the Company’s consolidated balance sheets are as follows (amounts in thousands):


	December 31,
	2024		2023
Operating lease liability	$	15,104	$	5,631
Operating lease liability, long-term		145,576		126,578
Minimum operating lease payments	$	160,680	$	132,209

Lease expense for these leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. For the years ended December 31, 2024, 2023 and 2022, total lease cost is comprised of the following:


	For the Years Ended December 31,
Lease Cost	2024		2023		2022
	(Amounts in thousands)
Operating lease cost	$	24,234	$	20,981	$	17,833
Variable operating lease cost		4,482		4,075		11,317
Lease cost	$	28,716	$	25,056	$	29,150

The following information represents supplemental disclosure for the consolidated statements of cash flows related to operating leases (amounts in thousands):


	For the Years Ended December 31,
	2024			2023			2022
Operating lease cost	$	(23,806	)	$	(17,862	)	$	(13,757	)

Most of the leases do not provide implicit interest rates and therefore the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for the Company’s leases is determined based on lease term and currency in which the lease payments are made.

The weighted average remaining lease term and the weighted average discount rate used to measure the Company’s operating lease liabilities as of December 31, 2024, were:


Weighted average remaining lease term (years)	7.53
Weighted average discount rate	4.56	%