LEASES

12 Months Ended

Dec. 31, 2022

We have entered into operating leases for the majority of our facilities. These real estate leases have remaining terms of up to 9 years, with a weighted-average remaining term of 5.1 years as of December 31, 2022. 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)	2022			2021
Operating leases:
Operating lease assets	$	47,132		$	58,236

Accrued liabilities	$	12,780		$	14,852
Operating lease liabilities	48,925			56,444
Total operating lease liabilities	$	61,705		$	71,296
Weighted-average remaining lease term (in years)	5.1			5.6
Weighted-average discount rate	5.2		%	4.7		%

Finance leases:
Property, plant and equipment, gross	$	33,060		$	33,359
Accumulated depreciation	(8,630)			(7,076)
Property, plant and equipment, net	$	24,430		$	26,283

Accrued liabilities	$	1,050		$	531
Other non-current liabilities	27,287			27,406
Total finance lease liabilities	$	28,337		$	27,937
Weighted-average remaining lease term (in years)	14.6			15.6
Weighted-average discount rate	6.0		%	6.0		%

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


(in thousands)	2022		2021		2020
Operating lease expense	$	20,480	$	17,485	$	20,928

Finance lease expense:
Amortization of right-of-use assets	$	1,853	$	1,283	$	751
Interest on lease liabilities	1,697		829		20
Total finance lease expense	$	3,550	$	2,112	$	771

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


(in thousands)	2022		2021		2020
Lease assets obtained in exchange for lease obligations:
Operating leases(1)	$	6,294	$	38,630	$	11,000
Finance leases(2)	—		26,941		—

Cash paid for amounts included in lease obligations:
Operating cash flows from operating leases(3)	$	19,015	$	8,444	$	19,026
Operating cash flows from finance leases	1,697		8		20
Financing cash flows from finance leases	1,290		421		735

(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, 2022:


(in thousands)	Operating lease obligations		Finance lease obligations
2023	$	15,190	$	2,709
2024	14,826		2,743
2025	12,203		2,777
2026	11,257		2,812
2027	8,110		2,847
Thereafter	9,645		29,032
Total lease payments	71,231		42,920
Less lease incentive receivable	(867)		—
Less imputed interest	(8,659)		(14,583)
Present value of lease payments	$	61,705	$	28,337