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v3.22.2.2

Leases | 9 Months Ended
--- | ---
Sep. 30, 2022
Leases [Abstract] |
Leases | Leases Balance Sheet Presentation Operating and finance lease amounts included in the unaudited condensed consolidated balance sheet are as follows (in thousands):
Classification |  | Financial Statement Line Item |  | September 30, 2022 |  | December 31, 2021
Assets |  | Right-of-use assets, operating leases |  | $ | 29,575 |  |  | $ | 30,811 |
Assets |  | Property, plant and equipment |  | 1,572 |  |  | 1,640 |
Current liabilities |  | Current portion of lease liabilities, operating leases |  | 1,041 |  |  | 1,104 |
Current liabilities |  | Current portion of lease liabilities, finance leases |  | 290 |  |  | 233 |
Non-current liabilities |  | Non-current portion of lease liabilities, operating leases |  | 31,190 |  |  | 32,059 |
Non-current liabilities |  | Non-current portion of lease liabilities, finance leases |  | 1,302 |  |  | 1,414 |
Total Lease Cost Individual components of the total lease cost incurred by the Company are as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2022 |  | 2021 |  | 2022 |  | 2021
Operating lease cost 1 | $ | 1,045 |  |  | $ | 1,026 |  |  | $ | 3,137 |  |  | $ | 3,072 |
Finance lease cost: |  |  |  |  |  |  |
Amortization of right-of-use assets | 71 |  |  | 13 |  |  | 204 |  |  | 33 |
Interest on finance lease liabilities | 9 |  |  | 1 |  |  | 27 |  |  | 2 |
Sublease income | (32) |  |  | — |  |  | (96) |  |  | — |
Total lease cost | $ | 1,093 |  |  | $ | 1,040 |  |  | $ | 3,272 |  |  | $ | 3,107 |
1 Includes short term leases, which are immaterial Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statement of income. During the fourth quarter of 2021, the Company entered into a sublease agreement with a third party to sublease a portion of the Palmer facility. The sublease agreement continues through the remaining term of the Master Lease Agreement and will expire on September 30, 2036, unless terminated in accordance with the sublease agreement. The sublease provides for an annual base rent of approximately $0.1 million in the first year, which increases on an annual basis by 2.0%. The sublessee is responsible for its pro rata share of certain costs, taxes and operating expenses related to the subleased space. The sublease includes an initial security deposit of $0.1 million. Future expected cash receipts from the sublease as of September 30, 2022 are as follows:
(in thousands) | Sublease Receipts
Remainder of 2022 | $ | 32 |
2023 | 129 |
2024 | 132 |
2025 | 134 |
2026 | 137 |
Thereafter | 1,490 |
Total sublease receipts | $ | 2,054 |
Maturity of Leases The amounts of undiscounted future minimum lease payments under leases as of September 30, 2022 are as follows:
(in thousands) | Operating |  | Finance
Remainder of 2022 | $ | 927 |  |  | $ | 83 |
2023 | 3,645 |  |  | 311 |
2024 | 3,667 |  |  | 257 |
2025 | 3,687 |  |  | 244 |
2026 | 3,703 |  |  | 244 |
Thereafter | 39,917 |  |  | 570 |
Total undiscounted minimum future lease payments | 55,546 |  |  | 1,709 |
Imputed interest | (23,315) |  |  | (116) |
Present value of lease liabilities | $ | 32,231 |  |  | $ | 1,593 |
Lease Term and Discount Rate
Weighted-average remaining lease term | September 30, 2022 |  | December 31, 2021
Operating leases | 13.84 years |  | 14.43 years
Finance leases | 6.25 years |  | 7.07 years
Weighted-average discount rate |  |  |
Operating leases | 8.31 | % |  | 8.30 | %
Finance leases | 2.34 | % |  | 2.27 | %
During the three and nine months ended September 30, 2022, the Company entered into new operating lease agreements resulting in an additional $0.2 million
Leases | Leases Balance Sheet Presentation Operating and finance lease amounts included in the unaudited condensed consolidated balance sheet are as follows (in thousands):
Classification |  | Financial Statement Line Item |  | September 30, 2022 |  | December 31, 2021
Assets |  | Right-of-use assets, operating leases |  | $ | 29,575 |  |  | $ | 30,811 |
Assets |  | Property, plant and equipment |  | 1,572 |  |  | 1,640 |
Current liabilities |  | Current portion of lease liabilities, operating leases |  | 1,041 |  |  | 1,104 |
Current liabilities |  | Current portion of lease liabilities, finance leases |  | 290 |  |  | 233 |
Non-current liabilities |  | Non-current portion of lease liabilities, operating leases |  | 31,190 |  |  | 32,059 |
Non-current liabilities |  | Non-current portion of lease liabilities, finance leases |  | 1,302 |  |  | 1,414 |
Total Lease Cost Individual components of the total lease cost incurred by the Company are as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2022 |  | 2021 |  | 2022 |  | 2021
Operating lease cost 1 | $ | 1,045 |  |  | $ | 1,026 |  |  | $ | 3,137 |  |  | $ | 3,072 |
Finance lease cost: |  |  |  |  |  |  |
Amortization of right-of-use assets | 71 |  |  | 13 |  |  | 204 |  |  | 33 |
Interest on finance lease liabilities | 9 |  |  | 1 |  |  | 27 |  |  | 2 |
Sublease income | (32) |  |  | — |  |  | (96) |  |  | — |
Total lease cost | $ | 1,093 |  |  | $ | 1,040 |  |  | $ | 3,272 |  |  | $ | 3,107 |
1 Includes short term leases, which are immaterial Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statement of income. During the fourth quarter of 2021, the Company entered into a sublease agreement with a third party to sublease a portion of the Palmer facility. The sublease agreement continues through the remaining term of the Master Lease Agreement and will expire on September 30, 2036, unless terminated in accordance with the sublease agreement. The sublease provides for an annual base rent of approximately $0.1 million in the first year, which increases on an annual basis by 2.0%. The sublessee is responsible for its pro rata share of certain costs, taxes and operating expenses related to the subleased space. The sublease includes an initial security deposit of $0.1 million. Future expected cash receipts from the sublease as of September 30, 2022 are as follows:
(in thousands) | Sublease Receipts
Remainder of 2022 | $ | 32 |
2023 | 129 |
2024 | 132 |
2025 | 134 |
2026 | 137 |
Thereafter | 1,490 |
Total sublease receipts | $ | 2,054 |
Maturity of Leases The amounts of undiscounted future minimum lease payments under leases as of September 30, 2022 are as follows:
(in thousands) | Operating |  | Finance
Remainder of 2022 | $ | 927 |  |  | $ | 83 |
2023 | 3,645 |  |  | 311 |
2024 | 3,667 |  |  | 257 |
2025 | 3,687 |  |  | 244 |
2026 | 3,703 |  |  | 244 |
Thereafter | 39,917 |  |  | 570 |
Total undiscounted minimum future lease payments | 55,546 |  |  | 1,709 |
Imputed interest | (23,315) |  |  | (116) |
Present value of lease liabilities | $ | 32,231 |  |  | $ | 1,593 |
Lease Term and Discount Rate
Weighted-average remaining lease term | September 30, 2022 |  | December 31, 2021
Operating leases | 13.84 years |  | 14.43 years
Finance leases | 6.25 years |  | 7.07 years
Weighted-average discount rate |  |  |
Operating leases | 8.31 | % |  | 8.30 | %
Finance leases | 2.34 | % |  | 2.27 | %
During the three and nine months ended September 30, 2022, the Company entered into new operating lease agreements resulting in an additional $0.2 million
Leases | Leases Balance Sheet Presentation Operating and finance lease amounts included in the unaudited condensed consolidated balance sheet are as follows (in thousands):
Classification |  | Financial Statement Line Item |  | September 30, 2022 |  | December 31, 2021
Assets |  | Right-of-use assets, operating leases |  | $ | 29,575 |  |  | $ | 30,811 |
Assets |  | Property, plant and equipment |  | 1,572 |  |  | 1,640 |
Current liabilities |  | Current portion of lease liabilities, operating leases |  | 1,041 |  |  | 1,104 |
Current liabilities |  | Current portion of lease liabilities, finance leases |  | 290 |  |  | 233 |
Non-current liabilities |  | Non-current portion of lease liabilities, operating leases |  | 31,190 |  |  | 32,059 |
Non-current liabilities |  | Non-current portion of lease liabilities, finance leases |  | 1,302 |  |  | 1,414 |
Total Lease Cost Individual components of the total lease cost incurred by the Company are as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2022 |  | 2021 |  | 2022 |  | 2021
Operating lease cost 1 | $ | 1,045 |  |  | $ | 1,026 |  |  | $ | 3,137 |  |  | $ | 3,072 |
Finance lease cost: |  |  |  |  |  |  |
Amortization of right-of-use assets | 71 |  |  | 13 |  |  | 204 |  |  | 33 |
Interest on finance lease liabilities | 9 |  |  | 1 |  |  | 27 |  |  | 2 |
Sublease income | (32) |  |  | — |  |  | (96) |  |  | — |
Total lease cost | $ | 1,093 |  |  | $ | 1,040 |  |  | $ | 3,272 |  |  | $ | 3,107 |
1 Includes short term leases, which are immaterial Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statement of income. During the fourth quarter of 2021, the Company entered into a sublease agreement with a third party to sublease a portion of the Palmer facility. The sublease agreement continues through the remaining term of the Master Lease Agreement and will expire on September 30, 2036, unless terminated in accordance with the sublease agreement. The sublease provides for an annual base rent of approximately $0.1 million in the first year, which increases on an annual basis by 2.0%. The sublessee is responsible for its pro rata share of certain costs, taxes and operating expenses related to the subleased space. The sublease includes an initial security deposit of $0.1 million. Future expected cash receipts from the sublease as of September 30, 2022 are as follows:
(in thousands) | Sublease Receipts
Remainder of 2022 | $ | 32 |
2023 | 129 |
2024 | 132 |
2025 | 134 |
2026 | 137 |
Thereafter | 1,490 |
Total sublease receipts | $ | 2,054 |
Maturity of Leases The amounts of undiscounted future minimum lease payments under leases as of September 30, 2022 are as follows:
(in thousands) | Operating |  | Finance
Remainder of 2022 | $ | 927 |  |  | $ | 83 |
2023 | 3,645 |  |  | 311 |
2024 | 3,667 |  |  | 257 |
2025 | 3,687 |  |  | 244 |
2026 | 3,703 |  |  | 244 |
Thereafter | 39,917 |  |  | 570 |
Total undiscounted minimum future lease payments | 55,546 |  |  | 1,709 |
Imputed interest | (23,315) |  |  | (116) |
Present value of lease liabilities | $ | 32,231 |  |  | $ | 1,593 |
Lease Term and Discount Rate
Weighted-average remaining lease term | September 30, 2022 |  | December 31, 2021
Operating leases | 13.84 years |  | 14.43 years
Finance leases | 6.25 years |  | 7.07 years
Weighted-average discount rate |  |  |
Operating leases | 8.31 | % |  | 8.30 | %
Finance leases | 2.34 | % |  | 2.27 | %
During the three and nine months ended September 30, 2022, the Company entered into new operating lease agreements resulting in an additional $0.2 million

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