Leases

9 Months Ended

Sep. 30, 2024

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.

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


Operating leases:	September 30, 2024		December 31, 2023
Operating lease right-of-use assets, net	$	41,206	$	43,822

Current maturities of operating leases	$	4,513	$	3,395
Non-current maturities of operating leases	41,440		43,977
Total operating lease liabilities	$	45,953	$	47,372

Finance leases:
Property and equipment, at cost	$	7,218	$	6,862
Accumulated amortization	(3,637)		(3,136)
Property and equipment, net	$	3,581	$	3,726

Current maturities of finance leases	$	650	$	582
Non-current maturities of finance leases	3,194		3,405
Total finance lease liabilities	$	3,844	$	3,987

Weighted average remaining lease term (in years):
Operating leases	9.8		10.4
Finance leases	5.9		6.8

Weighted average discount rate:
Operating leases	6.3%		6.3%
Finance leases	2.3%		2.2%

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) was as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Amortization of property and equipment	$	159	$	136	$	468	$	400
Interest expense on finance leases	22		20		67		62
Total finance lease expense	181		156		535		462
Operating lease expense	1,963		1,836		5,860		5,467
Sublease income	(133)		(87)		(332)		(101)
Total lease expense	$	2,011	$	1,905	$	6,063	$	5,828

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


	Nine Months Ended September 30,
Cash paid for amounts included in the measurement of lease liabilities:	2024		2023
Operating cash flows for operating leases	$	5,798	$	5,422
Financing cash flows for finance leases	469		396
Operating cash flows for finance leases	67		62

Future minimum lease payments are as follows (in thousands):


	Finance Leases		Operating Leases
Remainder of 2024	$	183	$	1,546
2025	721		7,516
2026	700		6,976
2027	688		6,288
2028	652		5,934
Thereafter	1,155		34,021
Total minimum lease payments	4,099		62,281
Less amount representing interest	(255)		(16,328)
Present value of net minimum lease payments	3,844		45,953
Less current maturities	(650)		(4,513)
Lease liabilities, less current maturities	$	3,194	$	41,440