LEASES

12 Months Ended

Dec. 31, 2021

We have entered into operating leases for the majority of our facilities. These real estate leases have remaining terms of up to 10 years, with a weighted-average remaining term of 5.7 years as of December 31, 2021. We utilize leases for these facilities to limit our exposure to risks related to ownership, such as fluctuations in real estate prices, and to maintain flexibility in our real estate utilization. We have also entered into operating leases for certain equipment, primarily production printers and data center equipment. Certain of our leases include options to extend the lease term. The impact of renewal periods was not

significant to the amounts recorded for operating lease assets and liabilities. We have also entered into finance leases for our corporate headquarters and for certain information technology hardware.

Leases were reflected on the consolidated balance sheets as follows at December 31:


(in thousands)	2021			2020
Operating leases:
Operating lease assets	$	58,236		$	35,906

Accrued liabilities	$	14,852		$	11,589
Operating lease liabilities	56,444			28,344
Total operating lease liabilities	$	71,296		$	39,933
Weighted-average remaining lease term (in years)	5.6			4.7
Weighted-average discount rate	4.7		%	3.1		%

Finance leases:
Property, plant and equipment, gross	$	33,359		$	6,970
Accumulated depreciation	(7,076)			(6,324)
Property, plant and equipment, net	$	26,283		$	646

Accrued liabilities	$	531		$	459
Other non-current liabilities	27,406			140
Total finance lease liabilities	$	27,937		$	599
Weighted-average remaining lease term (in years)	15.6			1.5
Weighted-average discount rate	6.0		%	2.0		%

The components of lease expense for the years ended December 31 were as follows:


(in thousands)	2021		2020		2019
Operating lease expense	$	17,485	$	20,928	$	19,113

Finance lease expense:
Amortization of right-of-use assets	$	1,283	$	751	$	915
Interest on lease liabilities	829		20		37
Total finance lease expense	$	2,112	$	771	$	952

Supplemental cash flow information related to leases for the years ended December 31 was as follows:


(in thousands)	2021		2020		2019
Lease assets obtained in exchange for lease obligations:
Operating leases(1)	$	38,630	$	11,000	$	11,637
Finance leases(2)	26,941		—		350

Cash paid for amounts included in lease obligations:
Operating cash flows from operating leases(3)	$	8,444	$	19,026	$	17,737
Operating cash flows from finance leases	8		20		37
Financing cash flows from finance leases	421		735		883

(1) Operating lease assets obtained during 2021 included $24,396 acquired in conjunction with the acquisition of First American in June 2021 (Note 6).

(2) Finance lease assets obtained during 2021 consisted of a lease on our corporate headquarters located in Minnesota that commenced in July 2021.

(3) Cash paid for operating leases during 2021 was reduced by lease incentives received of $9,410.

Maturities of lease liabilities were as follows at December 31, 2021:


(in thousands)	Operating lease obligations		Finance lease obligations
2022	$	18,793	$	1,313
2023	14,628		2,709
2024	13,479		2,743
2025	11,326		2,777
2026	10,353		2,812
Thereafter	17,096		31,879
Total lease payments	85,675		44,233
Less lease incentive receivable	(2,458)		—
Less imputed interest	(11,921)		(16,296)
Present value of lease payments	$	71,296	$	27,937