Virgin Orbit Holdings, Inc. Annual report pursuant to Section 13 and 15(d)

Leases (Tables)

12 Months Ended

Dec. 31, 2022

The components of lease expense related to leases for the period are as follows:


	Years Ended December 31,
	2022		2021		2020

	(In thousands)
Lease Cost:
Operating lease expense	$	2,969	$	2,952	$	2,735
Short-term lease expense	3,886		3,625		3,358
Finance lease cost:
Amortization of right-of-use assets	$	334	$	259	$	237
Interest on lease obligations	30		24		21
Total finance lease cost	364		283		258
Total lease cost	$	7,219	$	6,860	$	6,351

The components of supplemental cash flow information related to leases for the period are as follows:


	Years Ended December 31,
	2022			2021

	(In thousands)
Cash flow information:
Cash paid for amounts included in the measurement of lease obligations for the year ended:
Operating cash flows for operating leases	$	2,942		$	2,787
Operating cash flows for finance leases	30			24
Financing cash flows for finance leases	298			257

Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	1,887		$	1,632
Finance leases	1,390			53
Termination of right-of-use asset, net	1,300			—

Other information:
Weighted average remaining lease term:
Operating leases (in years)	7			8
Finance leases (in years)	2			1

Weighted average discount rates:
Operating leases	11.8		%	11.0		%
Finance leases	4.6		%	6.4		%

The supplemental balance sheet information related to leases for the period is as follows:


	As of
	December 31, 2022		December 31, 2021
	(In thousands)
Finance leases
Long-term right-of-use assets	$	1,308	$	252

Short-term finance lease liabilities	$	532	$	258
Long-term finance lease liabilities	826		79
Total finance lease liabilities	$	1,358	$	337

Operating leases
Long-term right-of-use assets	$	13,231	$	14,433

Short-term operating lease liabilities	$	1,220	$	1,384
Long-term operating lease liabilities	13,529		13,999
Total operating lease liabilities	$	14,749	$	15,383