Leases

12 Months Ended

Dec. 31, 2022

The Company has operating leases with fixed and variable payment terms primarily associated with buildings and warehouses. The Company's leases have remaining lease terms of twenty one months to fifty seven months, some of which include options to extend the lease for five years. Operating leases are included in right-of-use ("ROU") assets, other accrued liabilities and other non-current liabilities on the Consolidated Balance Sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease.

The Company used the applicable incremental borrowing rate at lease inception date to measure lease liabilities and ROU assets. The incremental borrowing rate used by the Company was based on baseline rates and adjusted by the credit spreads commensurate with the Company’s secured borrowing rate. At each reporting period when there is a new lease initiated, the Company will utilize the rate implicit in the lease if readily determinable and if not readily determinable, then the Company will utilize the incremental borrowing rate to perform lease classification tests on lease components and to measure ROU assets and lease liabilities.

The following table provides information related to the components of lease expense as of December 31 (in thousands):


	2022		2021
Operating lease cost	$	1,715	$	1,533
Short-term lease cost	1,549		1,092
Total net lease cost	$	3,264	$	2,625

The following table provides information related to other supplemental balance sheet information related to operating leases as of December 31, (in thousands):


	2022		2021
Operating lease:
Operating lease right of use assets	$	5,114	$	5,577
Total operating lease right of use assets	$	5,114	$	5,577

Current operating lease liabilities (A)	$	1,626	$	1,489
Noncurrent operating lease liabilities (B)	3,516		4,024
Total operating lease liabilities	$	5,142	$	5,513

(A) Current operating lease liability included in "Other Current Accrued Liabilities" on the Consolidated Balance Sheets.

(B) Noncurrent operating lease liability included in "Other Non-Current Liabilities" on the Consolidated Balance Sheets.


	2022		2021
Weighted average remaining lease term (in years):	3.6		4.2

Weighted average discount rate:	4.1	%	4.1	%

Other information related to leases as of December 31 (in thousands):


	2022		2021
Cash Paid for amounts included in the measurement of lease liabilities
Operating cash flow from operating leases	$	1,640	$	1,525

Right of use assets obtained in exchange for new operating lease liabilities	$	1,099	$	3,928

As of December 31, 2022, maturities of lease liabilities were as follows (in thousands):


	Operating Leases
2023	$	1,716
2024	1,722
2025	1,065
2026	979
2027	189
Total lease payments	5,671
Less: imputed interest	(529)
Total lease obligations	5,142
Less: current obligations	(1,626)
Long-term lease obligations	$	3,516