Leases

3 Months Ended

Mar. 31, 2022

7. Leases

We have operating and finance lease obligations resulting from the lease of land and buildings that comprise our corporate headquarters and various manufacturing facilities; leases related to additional manufacturing, office, and warehouse space; leases on company vehicles; and leases on a variety of office and other equipment.

On January 6, 2021 we executed a modification to extend the lease of our headquarters located in Kennesaw, Georgia. This modification resulted in an increase in the present value of future lease obligations and corresponding right-of-use asset of $23.3 million, using a discount rate of 6.41%.

Information related to leases included in the Condensed Consolidated Balance Sheets is as follows (in thousands, except lease term and discount rate):


Operating leases:		March 31, 2022		December 31, 2021
Operating lease right-of-use assets	$	57,532	$	58,097
Accumulated amortization		(13,167)		(12,383)
Operating lease right-of-use assets, net	$	44,365	$	45,714

Current maturities of operating leases	$	3,362	$	3,149
Non-current maturities of operating leases		43,679		44,869
Total operating lease liabilities	$	47,041	$	48,018

Finance leases:
Property and equipment, at cost	$	6,625	$	6,759
Accumulated amortization		(2,196)		(2,105)
Property and equipment, net	$	4,429	$	4,654

Current maturities of finance leases	$	520	$	528
Non-current maturities of finance leases		4,156		4,374
Total finance lease liabilities	$	4,676	$	4,902

Weighted average remaining lease term (in years):
Operating leases		12.4		12.5
Finance leases		8.6		8.8

Weighted average discount rate:
Operating leases		5.9%		5.8%
Finance leases		2.0%		2.0%

Current maturities of finance leases are included as a component of Other current liabilities on our Condensed Consolidated Balance Sheets. A summary of lease expenses for our finance and operating leases included in General, administrative, and marketing expenses on our Condensed Consolidated Statements of Operations and Comprehensive Income Loss are as follows (in thousands):


	Three Months Ended
	March 31,
		2022		2021
Amortization of property and equipment	$	137	$	154
Interest expense on finance leases		25		29
Total finance lease expense		162		183
Operating lease expense		1,920		1,758
Sublease income		(92)		(124)
Total lease expense	$	1,990	$	1,817

A summary of our cash flow information related to leases is as follows (in thousands):


	Three Months Ended
	March 31,
Cash paid for amounts included in the measurement of lease liabilities:		2022		2021
Operating cash flows for operating leases	$	1,525	$	1,500
Financing cash flows for finance leases		130		144
Operating cash flows for finance leases		24		28

Future minimum lease payments and sublease rental income are as follows (in thousands):


	Finance		Operating		Sublease
	Leases		Leases		Income
Remainder of 2022	$	436	$	4,392	$	214
2023		616		5,630		--
2024		610		6,189		--
2025		587		5,162		--
2026		568		4,767		--
Thereafter		2,272		42,021		--
Total minimum lease payments	$	5,089	$	68,161	$	214
Less amount representing interest		(413)		(21,120)
Present value of net minimum lease payments		4,676		47,041
Less current maturities		(520)		(3,362)
Lease liabilities, less current maturities	$	4,156	$	43,679