LEASES

12 Months Ended

Dec. 31, 2024

We have entered into operating leases for the majority of our facilities, with remaining terms extending up to 10 years as of December 31, 2024. These leases allow us to mitigate risks associated with property ownership, such as real estate price fluctuations, and provide us with greater flexibility in managing our real estate needs. Additionally, we have operating leases for certain equipment, including production printers and data center equipment. Some of these leases include options to extend the lease term, although the impact of these renewal periods was not material to the amounts recorded for operating lease assets and liabilities. We have also entered into finance leases for our corporate headquarters and certain information technology hardware.

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


(in thousands)	2024			2023
Operating leases:
Operating lease assets	$	49,382		$	58,961

Accrued liabilities	$	12,406		$	13,562
Operating lease liabilities	48,982			58,840
Total operating lease liabilities	$	61,388		$	72,402
Weighted-average remaining lease term	5 years			6 years
Weighted-average discount rate	8.5		%	7.8		%

Finance leases:
Property, plant and equipment, gross	$	28,166		$	26,941
Accumulated depreciation	(5,995)			(4,188)
Property, plant and equipment, net	$	22,171		$	22,753

Accrued liabilities	$	1,895		$	1,146
Other non-current liabilities	25,471			26,134
Total finance lease liabilities	$	27,366		$	27,280
Weighted-average remaining lease term	12 years			14 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)	2024		2023		2022
Operating lease expense	$	18,317	$	18,811	$	20,480
Finance lease expense:
Amortization of right-of-use assets	1,807		2,067		1,853
Interest on lease liabilities	1,603		1,659		1,697
Total finance lease expense	3,410		3,726		3,550
Total lease expense	$	21,727	$	22,537	$	24,030

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


(in thousands)	2024		2023		2022
Lease assets obtained in exchange for lease obligations:
Operating leases	$	3,617	$	26,167	$	6,294
Finance leases	1,225		—		—

Cash paid for amounts included in lease obligations:
Operating cash flows from operating leases	$	16,993	$	19,922	$	19,015
Operating cash flows from finance leases	1,603		1,659		1,697
Financing cash flows from finance leases	1,140		2,715		1,290

Maturities of lease liabilities were as follows at December 31, 2024:


(in thousands)	Operating lease obligations		Finance lease obligations
2025	$	16,878	$	3,211
2026	16,763		3,245
2027	12,764		3,280
2028	9,521		3,315
2029	8,294		2,916
Thereafter	14,403		23,235
Total lease payments	78,623		39,202
Less imputed interest	(17,235)		(11,836)
Present value of lease payments	$	61,388	$	27,366