Leases

12 Months Ended

Dec. 31, 2022

Note 9 – Leases

We have operating leases for office space, automobiles and various other equipment in the U.S. and in certain international locations. As of December 31, 2022, our operating leases had remaining lease terms of one month to 119 months, some of which included options to extend the leases for up to five years, and some of which included options to terminate the leases within three months. Supplemental balance sheet information related to operating leases is as follows:


		December 31,		December 31,
(In thousands)	Classification	2022		2021
Assets
Operating lease assets	Other non-current assets	$	30,340	$	4,922
Total lease asset		$	30,340	$	4,922

Liabilities
Current operating lease liability	Accrued expenses and other liabilities	$	7,596	$	1,730
Non-current operating lease liability	Other non-current liabilities		22,807		3,269
Total lease liability		$	30,403	$	4,999

Lease expense related to short-term leases was less than $0.1 million for the twelve months ended December 31, 2022, 2021 and 2020, and is included in cost of revenue, selling, general and administrative expenses and research and development expenses in the Consolidated Statements of (Loss) Income. Lease expense related to variable lease payments that do not depend on an index or rate, such as real estate taxes and insurance reimbursements, was $0.6 million, $0.5 million and $0.7 million for the twelve months ended December 31, 2022, 2021 and 2020, respectively.

The components of lease expense included in the Consolidated Statements of (Loss) Income were as follows:


	For the Year Ended December 31,
(In thousands)	2022		2021		2020
Cost of revenue	$	110	$	51	$	113
Research and development expenses		942		1,071		1,121
Selling, general and administrative expenses		3,961		883		1,311
Total operating lease expense	$	5,013	$	2,005	$	2,545

As of December 31, 2022, operating lease liabilities included on the Consolidated Balance Sheet by future maturity were as follows:


(In thousands)	Amount
2023		8,992
2024		8,076
2025		6,740
2026		3,825
2027		2,865
Thereafter		4,478
Total lease payments		34,976
Less: Interest		(4,573	)
Present value of lease liabilities	$	30,403

Future operating lease payments include $4.4 million related to options to extend lease terms that are reasonably certain of being exercised. There are no legally binding leases that have not yet commenced.

An incremental borrowing rate is used based on information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is determined on a portfolio basis by grouping leases with similar terms, as well as grouping leases based on a U.S. dollar or Euro functional currency. The following table provides information about our weighted average lease terms and weighted average discount rates:


	As of December 31,
Weighted average remaining lease term (years)	2022			2021
Operating leases with USD functional currency		7.9			1.8
Operating leases with Euro functional currency		4.2			3.5
Weighted average discount rate
Operating leases with USD functional currency		3.77	%		3.49	%
Operating leases with Euro functional currency		3.70	%		1.22	%