Leases

9 Months Ended

Sep. 30, 2021

8. Leases

We determine whether an arrangement is a lease at inception. We have operating and finance leases for corporate offices, warehouse space and equipment (including vehicles). As of September 30, 2021, we are the lessee in all agreements. Our leases have remaining lease terms of 1 to 7 years, some of which include options to extend the leases based on agreed upon terms, and some of which include options to terminate the leases within 1 year.

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments.

We have lease agreements that contain both lease and non-lease components (e.g., common-area maintenance). For these agreements, we account for lease components separate from non-lease components.

The components of lease expense are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating Lease Cost	$	655	$	330	$	1,574	$	964
Finance Lease Cost
Amortization of right-of use assets		571		150		910		476
Interest on lease liabilities		49		17		84		56
Total Finance Lease Cost	$	620	$	167	$	994	$	532

Supplemental cash flow information related to leases is as follows:


	Nine Months Ended September 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,182	$	965
Operating cash flows from financing leases		84		56
Financing cash flows from financing leases		1,111		521
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations		45		498
Right-of-use assets obtained in exchange for finance lease obligations		2,746		46

Supplemental balance sheet information related to leases is as follows:


	September 30, 2021		December 31, 2020
Operating Leases
Right-of-use assets	$	9,615	$	4,461

Current lease liabilities		2,178		1,125
Non-current lease liabilities		7,740		3,591
Total operating lease liabilities	$	9,918	$	4,716


Finance Leases
Right-of-use assets	$	4,629	$	1,312

Current lease liabilities		1,912		517
Non-current lease liabilities		2,834		895
Total finance lease liabilities	$	4,746	$	1,412


Weighted Average Remaining Lease Term
Weighted-average remaining lease term—operating leases	5.42
Weighted-average remaining lease term—finance leases	2.49

Weighted Average Discount Rate
Weighted-average discount rate—operating leases	3.92	%
Weighted-average discount rate—finance leases	3.45	%

As of September 30, 2021, minimum lease payments by period are expected to be as follows:



	Finance			Operating
2021 (excluding the nine months ended September 30, 2021)	$	510		$	628
2022		2,040			2,493
2023		1,810			1,776
2024		582			1,808
2025		4			1,443
Thereafter		—			2,808
Total Minimum Lease Payments		4,946			10,956
Less: imputed interest		(200	)		(1,038	)
Present Value of Lease Liabilities	$	4,746		$	9,918