Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

LEASES

We lease various assets in the ordinary course of business as follows: warehouses to store our materials and perform staging activities for certain products we install; various office spaces for selling and administrative activities to support our business; and certain vehicles and equipment to facilitate our operations, including, but not limited to, trucks, forklifts and office equipment.

The table below presents the lease-related assets and liabilities recorded on the Consolidated Balance Sheet:

(in thousands)	Classification	As of December 31,
		2021		2020
Assets
Non-Current
Operating	Operating lease right-of-use assets	$	69,871	$	53,766
Finance	Property and equipment, net	5,266		4,946
Total lease assets		$	75,137	$	58,712
Liabilities
Current
Operating	Current maturities of operating lease obligations	$	23,224	$	18,758
Financing	Current maturities of finance lease obligations	1,747		2,073
Non-Current
Operating	Operating lease obligations	46,075		34,413
Financing	Finance lease obligations	3,297		2,430
Total lease liabilities		$	74,343	$	57,674

Weighted-average remaining lease term
Operating leases	4.3 years		4.1 years
Finance leases	3.3 years		2.6 years
Weighted-average discount rate
Operating leases	3.38	%	3.67	%
Finance leases	4.96	%	5.08	%

Lease Costs

The table below presents certain information related to the lease costs for finance and operating leases during 2021, 2020 and 2019:

		Years ended December 31,
(in thousands)	Classification	2021		2020		2019
Operating lease cost (1)	Administrative	$	27,357	$	23,454	$	21,024
Finance lease cost
Amortization of leased assets (2)	Cost of sales	3,083		3,645		4,942
Interest on finance lease obligations	Interest expense, net	218		268		341
Total lease costs		$	30,658	$	27,367	$	26,307

(1)Includes variable lease costs of $3.0 million, $2.9 million and $2.5 million for the years ended December 31, 2021, 2020 and 2019, respectively, and short-term lease costs of $1.1 million, $0.8 million and $0.9 million for the years ended December 31, 2021, 2020 and 2019, respectively.

(2)Includes variable lease costs of $0.7 million, $0.7 million and $0.9 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Other Information

The table below presents supplemental cash flow information related to leases during 2021, 2020 and 2019:

	Years ended December 31,
(in thousands)	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	22,930	$	19,668	$	17,521
Operating cash flows for finance leases	218		268		341
Financing cash flows for finance leases	2,125		2,632		4,157

Undiscounted Cash Flows

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years for the finance lease obligations and operating lease obligations recorded on the Consolidated Balance Sheet as of December 31, 2021:

	Finance Leases		Operating Leases
(in thousands)			Related Party		Other		Total Operating
2022	$	2,001	$	1,347	$	23,832	$	25,179
2023	1,452		906		18,139		19,045
2024	1,043		645		11,006		11,651
2025	674		519		6,502		7,021
2026	343		—		4,701		4,701
Thereafter	—		—		7,283		7,283
Total minimum lease payments	5,513		$	3,417	$	71,463	74,880
Less: Amounts representing executory costs	(29)						—
Less: Amounts representing interest	(440)						(5,581)
Present value of future minimum lease payments	5,044						69,299
Less: Current obligation under leases	(1,747)						(23,224)
Long-term lease obligations	$	3,297					$	46,075

Leases

LEASES

We lease various assets in the ordinary course of business as follows: warehouses to store our materials and perform staging activities for certain products we install; various office spaces for selling and administrative activities to support our business; and certain vehicles and equipment to facilitate our operations, including, but not limited to, trucks, forklifts and office equipment.

The table below presents the lease-related assets and liabilities recorded on the Consolidated Balance Sheet:

(in thousands)	Classification	As of December 31,
		2021		2020
Assets
Non-Current
Operating	Operating lease right-of-use assets	$	69,871	$	53,766
Finance	Property and equipment, net	5,266		4,946
Total lease assets		$	75,137	$	58,712
Liabilities
Current
Operating	Current maturities of operating lease obligations	$	23,224	$	18,758
Financing	Current maturities of finance lease obligations	1,747		2,073
Non-Current
Operating	Operating lease obligations	46,075		34,413
Financing	Finance lease obligations	3,297		2,430
Total lease liabilities		$	74,343	$	57,674

Weighted-average remaining lease term
Operating leases	4.3 years		4.1 years
Finance leases	3.3 years		2.6 years
Weighted-average discount rate
Operating leases	3.38	%	3.67	%
Finance leases	4.96	%	5.08	%

Lease Costs

The table below presents certain information related to the lease costs for finance and operating leases during 2021, 2020 and 2019:

		Years ended December 31,
(in thousands)	Classification	2021		2020		2019
Operating lease cost (1)	Administrative	$	27,357	$	23,454	$	21,024
Finance lease cost
Amortization of leased assets (2)	Cost of sales	3,083		3,645		4,942
Interest on finance lease obligations	Interest expense, net	218		268		341
Total lease costs		$	30,658	$	27,367	$	26,307

(1)Includes variable lease costs of $3.0 million, $2.9 million and $2.5 million for the years ended December 31, 2021, 2020 and 2019, respectively, and short-term lease costs of $1.1 million, $0.8 million and $0.9 million for the years ended December 31, 2021, 2020 and 2019, respectively.

(2)Includes variable lease costs of $0.7 million, $0.7 million and $0.9 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Other Information

The table below presents supplemental cash flow information related to leases during 2021, 2020 and 2019:

	Years ended December 31,
(in thousands)	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	22,930	$	19,668	$	17,521
Operating cash flows for finance leases	218		268		341
Financing cash flows for finance leases	2,125		2,632		4,157

Undiscounted Cash Flows

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years for the finance lease obligations and operating lease obligations recorded on the Consolidated Balance Sheet as of December 31, 2021:

	Finance Leases		Operating Leases
(in thousands)			Related Party		Other		Total Operating
2022	$	2,001	$	1,347	$	23,832	$	25,179
2023	1,452		906		18,139		19,045
2024	1,043		645		11,006		11,651
2025	674		519		6,502		7,021
2026	343		—		4,701		4,701
Thereafter	—		—		7,283		7,283
Total minimum lease payments	5,513		$	3,417	$	71,463	74,880
Less: Amounts representing executory costs	(29)						—
Less: Amounts representing interest	(440)						(5,581)
Present value of future minimum lease payments	5,044						69,299
Less: Current obligation under leases	(1,747)						(23,224)
Long-term lease obligations	$	3,297					$	46,075