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Leases | 12 Months Ended
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Dec. 31, 2023
Leases [Abstract] |
Leases | 9. Leases The Company determines if a contractual arrangement qualifies as a lease at inception. The Company’s leases primarily relate to facilities, vehicles, equipment, and certain contract manufacturing agreements. Lease assets represent the Company’s right to use an underlying asset for the lease term, while lease liabilities represent the obligation to make lease payments arising from the lease. Lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company’s incremental borrowing rate is used as a discount rate, based on the information available at the commencement date, in determining the present value of lease payments. Lease assets also include the impact of any prepayments made and are reduced by the impact of any lease incentives. The Company does not recognize lease liabilities or lease assets on the balance sheet for short-term leases (leases with a lease term of twelve months or less as of the commencement date). Rather, any short-term lease payments are recognized as an expense on a straight-line basis over the lease term. The current period short-term lease expense reasonably reflects the Company's short-term lease commitments. For all classifications of leases, the Company combines lease and non-lease components to account for them as a single lease component. Variable lease payments are excluded from the lease liability and recognized in the period in which the obligation is incurred. Additionally, lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. A summary of the Company’s lease portfolio as of December 31, 2023, and 2022, is presented in the table below:
(U.S. Dollars, in thousands, except lease term and discount rate) |  | Classification |  | December 31, 2023 |  |  | December 31, 2022 |
Assets |  |  |  |  |  |  |  |
Operating leases |  | Other long-term assets |  | $ | 19,869 |  |  | $ | 6,788 |
Finance leases |  | Property, plant and equipment, net |  |  | 16,345 |  |  |  | 17,360 |
Total lease assets |  |  |  | $ | 36,214 |  |  | $ | 24,148 |
Liabilities |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |
Operating leases |  | Other current liabilities |  | $ | 3,477 |  |  | $ | 1,638 |
Finance leases |  | Current portion of finance lease liability |  |  | 708 |  |  |  | 652 |
Long-term |  |  |  |  |  |  |  |
Operating leases |  | Other long-term liabilities |  |  | 17,125 |  |  |  | 5,376 |
Finance leases |  | Long-term portion of finance lease liability |  |  | 18,532 |  |  |  | 19,239 |
Total lease liabilities |  |  |  | $ | 39,842 |  |  | $ | 26,905 |
Weighted Average Remaining Lease Term |  |  |  |  |  |  |  |
Operating leases |  |  |  | 6.2 years |  |  | 4.5 years |
Finance leases |  |  |  | 16.6 years |  |  | 17.6 years |
Weighted Average Discount Rate |  |  |  |  |  |  |  |
Operating leases |  |  |  |  | 7.3 | % |  |  | 4.0 | %
Finance leases |  |  |  |  | 4.4 | % |  |  | 4.4 | %
The components of lease costs were as follows:
(U.S. Dollars, in thousands) |  | For the Year Ended December 31, 2023 |  |  | For the Year Ended December 31, 2022 |  |  | For the Year Ended December 31, 2021 |
Finance lease costs: |  |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  | $ | 1,013 |  |  | $ | 1,238 |  |  | $ | 2,049 |
Interest on finance lease liabilities |  |  | 857 |  |  |  | 890 |  |  |  | 933 |
Operating lease costs |  |  | 5,015 |  |  |  | 2,126 |  |  |  | 2,234 |
Short-term lease costs |  |  | 313 |  |  |  | 152 |  |  |  | 213 |
Variable lease costs |  |  | 1,883 |  |  |  | 932 |  |  |  | 815 |
Total lease costs |  | $ | 9,081 |  |  | $ | 5,338 |  |  | $ | 6,244 |
Supplemental cash flow information related to leases was as follows:
(U.S. Dollars, in thousands) |  | For the Year Ended December 31, 2023 |  |  | For the Year Ended December 31, 2022 |  |  | For the Year Ended December 31, 2021 |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 7,682 |  |  | $ | 3,805 |  |  | $ | 4,627 |
Operating cash flows from finance leases |  |  | 857 |  |  |  | 885 |  |  |  | 907 |
Financing cash flows from finance leases |  |  | 652 |  |  |  | 2,594 |  |  |  | 537 |
Right-of-use assets obtained in exchange for lease obligations |  |  |  |  |  |  |  |  |
Operating leases |  |  | 16,688 |  |  |  | 5,603 |  |  |  | 589 |
Finance leases |  |  | — |  |  |  | — |  |  |  | 149 |
A summary of the Company’s remaining lease liabilities as of December 31, 2023, is included below:
(U.S. Dollars, in thousands) |  | Operating Leases |  |  | Finance Leases |
2024 |  | $ | 4,861 |  |  | $ | 1,538 |
2025 |  |  | 4,788 |  |  |  | 1,543 |
2026 |  |  | 4,607 |  |  |  | 1,562 |
2027 |  |  | 3,441 |  |  |  | 1,593 |
2028 |  |  | 1,785 |  |  |  | 1,624 |
Thereafter |  |  | 6,766 |  |  |  | 19,396 |
Total undiscounted value of lease liabilities |  |  | 26,248 |  |  |  | 27,256 |
Less: Interest |  |  | (5,646 | ) |  |  | (8,016 | )
Present value of lease liabilities |  | $ | 20,602 |  |  | $ | 19,240 |
Current portion of lease liabilities |  | $ | 3,477 |  |  | $ | 708 |
Long-term portion of lease liabilities |  |  | 17,125 |  |  |  | 18,532 |
Total lease liabilities |  | $ | 20,602 |  |  | $ | 19,240 |

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