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Leases

9 Months Ended

Sep. 30, 2023

Note 11. Leases

We have operating leases for manufacturing and production facilities, distribution and warehousing facilities, vehicles and machinery and equipment. Some of our lease agreements have renewal options, tenant improvement allowances, rent holidays and rent escalation clauses. The remaining terms on our leases range from 1 year to 7 years, some of which may include options to extend the leases and some of which may include options to terminate the leases within 1 year.

The following table summarizes the amount of right-of-use lease assets and lease liabilities included in each respective line item on the Company’s Condensed Consolidated Balance Sheets:


		September 30,		December 31,
(Thousands)	Balance Sheet Location	2023		2022
Right-of-use operating lease assets	Operating lease right-of-use assets	$	14,496	$	11,090
Operating lease liabilities - current	Accrued expenses and other current liabilities		3,322		2,832
Operating lease liabilities - noncurrent	Other long-term liabilities		11,770		8,424

Depending on the nature of the lease, lease costs are classified within costs of sales or selling, general and administrative expense on the Company’s Condensed Consolidated Statements of Operations. The components of lease costs for the three and nine months ended September 30, 2023 and 2022, respectively, are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(Thousands)	2023		2022		2023		2022
Operating lease cost	$	1,179	$	878	$	3,609	$	1,720
Short-term lease cost		247		219		727		443
Total	$	1,426	$	1,097	$	4,336	$	2,163

The following table presents information about the Company’s weighted average discount rate and remaining lease term as of September 30, 2023 and 2022:

Supplemental cash flow information about the Company’s leases as of September 30, 2023 and 2022, respectively, is as follows:


	Nine Months Ended September 30,
(Thousands)	2023		2022
Operating cash flows from operating leases	$	3,195	$	844

During the nine months ended September 30, 2023, the Company obtained $6.0 million of right-of-use operating lease assets in exchange for lease obligations.

Finance lease assets are recorded in property, plant and equipment, net with the corresponding lease liabilities included in accrued expenses and other current liabilities and long-term debt, net on the Condensed Consolidated Balance Sheets. There were no material finance leases as of September 30, 2023.

Future minimum lease payments under non-cancellable operating leases as of September 30, 2023 are as follows:


(Thousands)
Remainder of 2023	$	1,039
2024		4,382
2025		3,277
2026		2,609
2027		2,589
Thereafter		4,239
Total future minimum lease payments		18,135
Less: imputed interest		(3,043)
Present value of minimum lease payments	$	15,092

September 30, 2023

September 30, 2022

Weighted-average discount rate

Weighted-average remaining lease term