LEASES AND RELATED PARTY LEASES

9 Months Ended

Sep. 30, 2022

LEASES AND RELATED PARTY LEASESThe Company leases administrative, manufacturing, research and distribution facilities and vehicles through operating lease agreements. The Company has no finance leases as of September 30, 2022. Many of the Company's leases include both lease (e.g., fixed payments including rent) and non-lease components (e.g., common-area or other maintenance costs). For vehicles, the Company has elected the practical expedient to group lease and non-lease components.

Most facility leases include one or more options to renew. The exercise of lease renewal options is typically at the Company's sole discretion, therefore, the majority of renewals to extend the lease terms are not included in the Right of Use ("ROU") assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates renewal options and when they are reasonably certain of exercise, the renewal period is included in the lease term.

As most of the Company's leases do not provide an implicit rate, the Company uses a collateralized incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments.

Total operating lease expense for the nine months ended September 30, 2022 and September 30, 2021 was $16.6 million and $15.7 million respectively, which includes $0.2 million, in related party operating lease expense.

Supplemental balance sheet information related to operating leases were as follows:


Dollars in thousands, except lease term and discount rate	September 30, 2022			December 31, 2021
ROU assets	$	148,270		$	84,543

Current lease liabilities	13,488			14,775
Non-current lease liabilities	157,533			90,329
Total lease liabilities	$	171,021		$	105,104

Weighted average remaining lease term (in years):
Leased facilities	17.3 years			10.4 years
Leased vehicles	2.0 years			2.1 years

Weighted average discount rate:
Leased facilities	5.3		%	5.1		%
Leased vehicles	2.7		%	2.6		%

Supplemental cash flow information related to leases for the nine months ended September 30, 2022 and 2021 were as follows:


Dollars in thousands	September 30, 2022		September 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	12,804	$	10,942

ROU assets obtained in exchange for lease liabilities:
Operating leases	$	75,588	$	10,725

Future minimum lease payments under operating leases at September 30, 2022 were as follows:


Dollars in thousands	Related Parties		Third Parties		Total
Remainder of 2022	$	74	$	4,112	$	4,186
2023	296		18,902		19,198
2024	296		19,435		19,731
2025	296		18,014		18,310
2026	296		16,624		16,920
2027	296		15,773		16,069
Thereafter	246		164,838		165,084
Total minimum lease payments	$	1,800	$	257,698	$	259,498
Less: Imputed interest					88,477
Total lease liabilities					171,021
Less: Current lease liabilities					13,488
Long-term lease liabilities					157,533

Related Party Leases

The Company leases its manufacturing facility in Plainsboro, New Jersey, from a general partnership that is 50% owned by a corporation whose stockholders are trusts, whose beneficiaries include family members of the Company’s former director. The term of the current lease agreement is through October 31, 2029 at an annual rate of approximately $0.3 million per year. The current lease agreement also provides (i) a 5-year renewal option for the Company to extend the lease from November 1, 2029 through October 31, 2034 at the fair market rental rate of the premises, and (ii) another 5-year renewal option to extend the lease from November 1, 2034 through October 31, 2039 at the fair market rental rate of the premises.