Tailwind Two Acquisition Corp. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Leases

Leases

9 Months Ended

Sep. 30, 2023

Note 14 Leases

As part of normal operations, the Company leases real estate and equipment from various counterparties with lease terms and maturities extending through 2032.

The following table presents the amounts reported in the Company’s condensed consolidated balance sheets related to operating and finance leases as of the dates presented:


(in thousands)	Classification	September 30, 2023		December 31, 2022
Right-of-use assets:
Operating	Other assets	$	12,300	$	12,736
Finance	Property, plant, and equipment, net		6,483		420
Total right-of-use assets		$	18,783	$	13,156

Lease liabilities
Operating	Accrued expenses and other current liabilities	$	1,342	$	971
Finance	Current portion of long-term debt		1,874		90
Operating	Other liabilities		18,396		19,426
Finance	Long-term debt		3,563		321
Total lease liabilities		$	25,175	$	20,808

The following is a summary of the Company’s lease cost for the periods presented:


	Three Months Ended September 30,				Nine Months Ended September 30,
Lease cost (in thousands)	2023		2022		2023		2022
Operating lease cost	$	1,785	$	1,824	$	5,334	$	4,934
Finance lease cost
Amortization of right-of-use assets		592		19		858		26
Interest on lease liabilities		165		5		231		9
Variable lease costs		757		196		1,195		670
Total lease cost	$	3,299	$	2,044	$	7,618	$	5,639

The following is a summary of the cash flows and supplemental information associated with the Company’s leases for the periods presented:


	Nine Months Ended September 30,
Other information (in thousands)	2023		2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	5,554	$	2,610
Operating cash flows from finance leases		231		9
Financing cash flows from finance leases		621		22
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases		299		10,544
Finance leases		5,736		402

Lease payments prior to commencement are classified in the condensed consolidated statements of cash flows based on the expected classification of the lease upon commencement and are excluded from the table above. During the nine months ended September 30, 2023, lease payments prior to the commencement of finance leases totaled $1.7 million.

In February 2023, the Company executed an operating lease for manufacturing and assembly space with an original lease term of 124 months, which is expected to commence no later than in February 2024 and has total future minimum lease payments of approximately $34.5 million.