LEASES

12 Months Ended

Dec. 31, 2023

We have entered into operating leases for the majority of our facilities with remaining terms of up to 11 years as of December 31, 2023. 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 material to the amounts recorded for operating lease assets and liabilities. We have also entered into a finance lease for our corporate headquarters and, as of December 31, 2022, we had finance leases for certain information technology hardware.

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


(in thousands)	2023			2022
Operating leases:
Operating lease assets	$	58,961		$	47,132

Accrued liabilities	$	13,562		$	12,780
Operating lease liabilities	58,840			48,925
Total operating lease liabilities	$	72,402		$	61,705
Weighted-average remaining lease term	6 years			5 years
Weighted-average discount rate	7.8		%	5.2		%

Finance leases:
Property, plant and equipment, gross	$	26,941		$	33,060
Accumulated depreciation	(4,188)			(8,630)
Property, plant and equipment, net	$	22,753		$	24,430

Accrued liabilities	$	1,146		$	1,050
Other non-current liabilities	26,134			27,287
Total finance lease liabilities	$	27,280		$	28,337
Weighted-average remaining lease term	14 years			15 years
Weighted-average discount rate	6.0		%	6.0		%

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


(in thousands)	2023		2022		2021
Operating lease expense	$	18,811	$	20,480	$	17,485

Finance lease expense:
Amortization of right-of-use assets	$	2,067	$	1,853	$	1,283
Interest on lease liabilities	1,659		1,697		829
Total finance lease expense	$	3,726	$	3,550	$	2,112

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


(in thousands)	2023		2022		2021
Lease assets obtained in exchange for lease obligations:
Operating leases(1)	$	26,167	$	6,294	$	38,630
Finance leases(2)	—		—		26,941

Cash paid for amounts included in lease obligations:
Operating cash flows from operating leases(3)	$	19,922	$	19,015	$	8,444
Operating cash flows from finance leases	1,659		1,697		8
Financing cash flows from finance leases	2,715		1,290		421

(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 for 2021 was reduced by lease incentives received of $9,410.

Maturities of lease liabilities were as follows at December 31, 2023:


(in thousands)	Operating lease obligations		Finance lease obligations
2024	$	17,829	$	2,743
2025	17,746		2,777
2026	16,210		2,812
2027	12,168		2,847
2028	8,882		2,881
Thereafter	19,294		26,151
Total lease payments	92,129		40,211
Less imputed interest	(19,727)		(12,931)
Present value of lease payments	$	72,402	$	27,280