Leases

12 Months Ended

Dec. 31, 2022

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%.

On June 1, 2021 we began occupancy of the newly constructed addition to our leased international headquarters located in Hechingen, Germany. This lease resulted in an increase in the present value of future lease obligations and corresponding right-of-use asset of $9.8 million, using a discount rate of 5.46%.

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


Operating leases:	December 31, 2022			December 31, 2021
Operating lease right-of-use assets	$	56,061		$	58,097
Accumulated amortization	(14,202)			(12,383)
Operating lease right-of-use assets, net	$	41,859		$	45,714

Current maturities of operating leases	$	3,308		$	3,149
Non-current maturities of operating leases	41,257			44,869
Total operating lease liabilities	$	44,565		$	48,018

Finance leases:
Property and equipment, at cost	$	6,408		$	6,759
Accumulated amortization	(2,498)			(2,105)
Property and equipment, net	$	3,910		$	4,654

Current maturities of finance leases	$	513		$	528
Non-current maturities of finance leases	3,644			4,374
Total finance lease liabilities	$	4,157		$	4,902

Weighted average remaining lease term (in years):
Operating leases	11.9			12.5
Finance leases	7.8			8.8

Weighted average discount rate:
Operating leases	5.9		%	5.8		%
Finance leases	2.1		%	2.0		%

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


	December 31, 2022		December 31, 2021
Amortization of property and equipment	$	518	$	596
Interest expense on finance leases	89		110
Total finance lease expense	607		706
Operating lease expensea	7,432		7,521
Sublease income	(306)		(399)
Total lease expense	$	7,733	$	7,828

______________________

aTotal rental expense for operating leases was $7.1 million in 2020.

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


Cash paid for amounts included in the measurement of lease liabilities:	2022		2021
Operating cash flows for operating leases	$	6,927	$	6,061
Financing cash flows for finance leases	507		557
Operating cash flows for finance leases	90		105

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


	Finance Leases		Operating Leases
2023	$	583	$	5,898
2024	595		5,629
2025	574		5,445
2026	555		4,912
2027	550		4,794
Thereafter	1,637		36,955
Total minimum lease payments	$	4,494	$	63,633
Less amount representing interest	(337)		(19,068)
Present value of net minimum lease payments	4,157		44,565
Less current maturities	(513)		(3,308)
Lease obligations, less current maturities	$	3,644	$	41,257