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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):
ClassificationFinancial Statement Line ItemSeptember 30, 2022December 31, 2021
AssetsRight-of-use assets, operating leases$29,575 $30,811 
AssetsProperty, plant and equipment1,572 1,640 
Current liabilitiesCurrent portion of lease liabilities, operating leases1,041 1,104 
Current liabilitiesCurrent portion of lease liabilities, finance leases290 233 
Non-current liabilitiesNon-current portion of lease liabilities, operating leases31,190 32,059 
Non-current liabilitiesNon-current portion of lease liabilities, finance leases1,302 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)2022202120222021
Operating lease cost1
$1,045 $1,026 $3,137 $3,072 
Finance lease cost:
Amortization of right-of-use assets71 13 204 33 
Interest on finance lease liabilities9 1 27 2 
Sublease income(32)— (96)— 
Total lease cost$1,093 $1,040 $3,272 $3,107 
1Includes 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 
2023129 
2024132 
2025134 
2026137 
Thereafter1,490 
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)OperatingFinance
Remainder of 2022$927 $83 
20233,645 311 
20243,667 257 
20253,687 244 
20263,703 244 
Thereafter39,917 570 
Total undiscounted minimum future lease payments55,546 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 termSeptember 30, 2022December 31, 2021
Operating leases13.84 years14.43 years
Finance leases6.25 years7.07 years
Weighted-average discount rate
Operating leases8.31 %8.30 %
Finance leases2.34 %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):
ClassificationFinancial Statement Line ItemSeptember 30, 2022December 31, 2021
AssetsRight-of-use assets, operating leases$29,575 $30,811 
AssetsProperty, plant and equipment1,572 1,640 
Current liabilitiesCurrent portion of lease liabilities, operating leases1,041 1,104 
Current liabilitiesCurrent portion of lease liabilities, finance leases290 233 
Non-current liabilitiesNon-current portion of lease liabilities, operating leases31,190 32,059 
Non-current liabilitiesNon-current portion of lease liabilities, finance leases1,302 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)2022202120222021
Operating lease cost1
$1,045 $1,026 $3,137 $3,072 
Finance lease cost:
Amortization of right-of-use assets71 13 204 33 
Interest on finance lease liabilities9 1 27 2 
Sublease income(32)— (96)— 
Total lease cost$1,093 $1,040 $3,272 $3,107 
1Includes 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 
2023129 
2024132 
2025134 
2026137 
Thereafter1,490 
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)OperatingFinance
Remainder of 2022$927 $83 
20233,645 311 
20243,667 257 
20253,687 244 
20263,703 244 
Thereafter39,917 570 
Total undiscounted minimum future lease payments55,546 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 termSeptember 30, 2022December 31, 2021
Operating leases13.84 years14.43 years
Finance leases6.25 years7.07 years
Weighted-average discount rate
Operating leases8.31 %8.30 %
Finance leases2.34 %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):
ClassificationFinancial Statement Line ItemSeptember 30, 2022December 31, 2021
AssetsRight-of-use assets, operating leases$29,575 $30,811 
AssetsProperty, plant and equipment1,572 1,640 
Current liabilitiesCurrent portion of lease liabilities, operating leases1,041 1,104 
Current liabilitiesCurrent portion of lease liabilities, finance leases290 233 
Non-current liabilitiesNon-current portion of lease liabilities, operating leases31,190 32,059 
Non-current liabilitiesNon-current portion of lease liabilities, finance leases1,302 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)2022202120222021
Operating lease cost1
$1,045 $1,026 $3,137 $3,072 
Finance lease cost:
Amortization of right-of-use assets71 13 204 33 
Interest on finance lease liabilities9 1 27 2 
Sublease income(32)— (96)— 
Total lease cost$1,093 $1,040 $3,272 $3,107 
1Includes 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 
2023129 
2024132 
2025134 
2026137 
Thereafter1,490 
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)OperatingFinance
Remainder of 2022$927 $83 
20233,645 311 
20243,667 257 
20253,687 244 
20263,703 244 
Thereafter39,917 570 
Total undiscounted minimum future lease payments55,546 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 termSeptember 30, 2022December 31, 2021
Operating leases13.84 years14.43 years
Finance leases6.25 years7.07 years
Weighted-average discount rate
Operating leases8.31 %8.30 %
Finance leases2.34 %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