Note 16. Leases

 

The Company leases offices and manufacturing facilities under non-cancelable operating leases expiring at various dates through August 2032. Some of the Company’s leases include one or more options to renew, with renewal terms that if exercised by the Company, extend the lease term from one to six years. The exercise of these renewal options is at the Company’s discretion. The Company’s lease agreements do not contain any material terms and conditions of residual value guarantees or material restrictive covenants. The Company’s short-term leases and sublease income were not material.

 

In September 2024, the Company reduced the leased space at one of its contracted manufacturing facility in Mexico from approximately 320,873 square feet to 220,873 square feet, for the term from December 2024 to March 2025, and further to 125,873 square feet for the lease term from April 2025 to August 2032. The Company determined that the amendment would be treated as a lease modification. The modification resulted in a remeasurement of the operating lease right-of-use asset and lease liability, and the effect was a decrease to the right-of-use asset and lease liability of $7.5 million and $7.8 million, respectively.

 

The components of lease expenses were as follows (in thousands):

Supplemental cash flow information related to leases was as follows (in thousands):

 

 

Weighted average remaining terms were as follows (in years):

 

Weighted average discount rates were as follows:

 

Maturities of lease liabilities were as follows (in thousands):

⁽¹⁾ Includes $11.4 million of operating lease liabilities which are currently classified as “Liabilities subject to compromise” on our Consolidated Balance Sheet.