| LEASES |
LEASES
Lease cost for the three and nine months ended September 30, 2023 and 2022 are as follow (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Operating lease cost(1)
|
|
$ |
1,082 |
|
|
$ |
1,381 |
|
|
$ |
3,353 |
|
|
$ |
4,023 |
|
| Finance lease cost: |
|
|
|
|
|
|
|
|
| Amortization of right-of-use assets |
|
217 |
|
|
— |
|
|
335 |
|
|
— |
|
| Interest on lease liabilities |
|
106 |
|
|
— |
|
|
181 |
|
|
— |
|
| Total lease cost |
|
$ |
1,405 |
|
|
$ |
1,381 |
|
|
$ |
3,869 |
|
|
$ |
4,023 |
|
|
|
|
|
|
|
|
|
|
| Reported in: |
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
$ |
1,268 |
|
|
$ |
1,246 |
|
|
$ |
3,532 |
|
|
$ |
3,679 |
|
| Selling, general and administrative |
|
137 |
|
|
135 |
|
|
337 |
|
|
344 |
|
| Total lease cost |
|
$ |
1,405 |
|
|
$ |
1,381 |
|
|
$ |
3,869 |
|
|
$ |
4,023 |
|
(1) Operating lease cost does not include short-term leases or variable costs, all of which are immaterial.
As of September 30, 2023 the weighted-average remaining lease term of operating leases and finance leases were approximately 8.4 years and 8.1 years, respectively and the weighted-average discount rates applied were 6.6% and 7.8%, respectively.
Supplemental cash flow information related to leases for the nine months ended September 30, 2023 and 2022 are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
2023 |
|
2022 |
| Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
| Operating cash flows for operating leases |
$ |
3,206 |
|
|
$ |
3,797 |
|
| Operating cash flows for finance leases |
172 |
|
|
— |
|
| Financing cash flows for finance leases |
251 |
|
|
— |
|
| Right-of-use assets obtained in exchange for new lease obligations: |
|
|
|
| Operating leases |
$ |
4,492 |
|
|
$ |
4,326 |
|
| Finance leases |
5,677 |
|
|
— |
|
| Net change in operating lease right-of-use assets due to lease modifications resulting in reclassification of leases from operating to finance |
$ |
(1,514) |
|
|
— |
|
As of September 30, 2023, the estimated future minimum payment obligations for non-cancelable operating leases and finance leases are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Leases |
|
Finance Leases |
| Remainder of 2023 |
|
$ |
976 |
|
|
$ |
244 |
|
| 2024 |
|
3,173 |
|
|
962 |
|
| 2025 |
|
3,105 |
|
|
879 |
|
| 2026 |
|
2,753 |
|
|
731 |
|
| 2027 |
|
2,577 |
|
|
694 |
|
| Thereafter |
|
10,880 |
|
|
4,693 |
|
| Total Lease payments |
|
23,464 |
|
|
8,203 |
|
| Less: imputed interest |
|
5,844 |
|
|
2,623 |
|
| Present value of lease liabilities |
|
$ |
17,620 |
|
|
$ |
5,580 |
|
|
| LEASES |
LEASES
Lease cost for the three and nine months ended September 30, 2023 and 2022 are as follow (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Operating lease cost(1)
|
|
$ |
1,082 |
|
|
$ |
1,381 |
|
|
$ |
3,353 |
|
|
$ |
4,023 |
|
| Finance lease cost: |
|
|
|
|
|
|
|
|
| Amortization of right-of-use assets |
|
217 |
|
|
— |
|
|
335 |
|
|
— |
|
| Interest on lease liabilities |
|
106 |
|
|
— |
|
|
181 |
|
|
— |
|
| Total lease cost |
|
$ |
1,405 |
|
|
$ |
1,381 |
|
|
$ |
3,869 |
|
|
$ |
4,023 |
|
|
|
|
|
|
|
|
|
|
| Reported in: |
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
$ |
1,268 |
|
|
$ |
1,246 |
|
|
$ |
3,532 |
|
|
$ |
3,679 |
|
| Selling, general and administrative |
|
137 |
|
|
135 |
|
|
337 |
|
|
344 |
|
| Total lease cost |
|
$ |
1,405 |
|
|
$ |
1,381 |
|
|
$ |
3,869 |
|
|
$ |
4,023 |
|
(1) Operating lease cost does not include short-term leases or variable costs, all of which are immaterial.
As of September 30, 2023 the weighted-average remaining lease term of operating leases and finance leases were approximately 8.4 years and 8.1 years, respectively and the weighted-average discount rates applied were 6.6% and 7.8%, respectively.
Supplemental cash flow information related to leases for the nine months ended September 30, 2023 and 2022 are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
2023 |
|
2022 |
| Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
| Operating cash flows for operating leases |
$ |
3,206 |
|
|
$ |
3,797 |
|
| Operating cash flows for finance leases |
172 |
|
|
— |
|
| Financing cash flows for finance leases |
251 |
|
|
— |
|
| Right-of-use assets obtained in exchange for new lease obligations: |
|
|
|
| Operating leases |
$ |
4,492 |
|
|
$ |
4,326 |
|
| Finance leases |
5,677 |
|
|
— |
|
| Net change in operating lease right-of-use assets due to lease modifications resulting in reclassification of leases from operating to finance |
$ |
(1,514) |
|
|
— |
|
As of September 30, 2023, the estimated future minimum payment obligations for non-cancelable operating leases and finance leases are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Leases |
|
Finance Leases |
| Remainder of 2023 |
|
$ |
976 |
|
|
$ |
244 |
|
| 2024 |
|
3,173 |
|
|
962 |
|
| 2025 |
|
3,105 |
|
|
879 |
|
| 2026 |
|
2,753 |
|
|
731 |
|
| 2027 |
|
2,577 |
|
|
694 |
|
| Thereafter |
|
10,880 |
|
|
4,693 |
|
| Total Lease payments |
|
23,464 |
|
|
8,203 |
|
| Less: imputed interest |
|
5,844 |
|
|
2,623 |
|
| Present value of lease liabilities |
|
$ |
17,620 |
|
|
$ |
5,580 |
|
|