Leases

12 Months Ended

Dec. 31, 2023

Leases

Leases

7. Leases

The Company leases numerous facilities worldwide with larger concentrations of space in Texas, Michigan, Connecticut, California, India, Mexico and the Philippines. The Company’s facilities house general offices, sales offices,

service locations, and production facilities. Substantially all of the Company’s operations facilities are leased under long-term leases with varying expiration dates, except for the few owned locations. The Company regularly obtains various machinery, equipment, vehicles and furniture on leases. The machinery and equipment leases mainly include leasing of computers, servers, other IT equipment, mailing system, production equipment, generators, office equipment, printers, copiers and miscellaneous warehouse equipment.

The Company’s ROU assets and lease liabilities as of December 31, 2023 and 2022 recorded on the consolidated balance sheets are as follows:

	December 31,		December 31,
	2023		2022
Balance sheet location:
Operating Lease
Operating lease right-of-use assets, net	$	33,874	$	40,734
Current portion of operating lease liabilities		10,845		11,867
Operating lease liabilities, net of current portion		26,703		31,030
Finance Lease
Finance lease right-of-use assets, net (included in property, plant and equipment, net)		10,688		11,943
Current portion of finance lease liabilities		4,856		5,485
Finance lease liabilities, net of current portion		5,953		9,448

Supplemental balance sheet information related to leases is as follows:

	December 31,		December 31,
	2023		2022
Weighted-average remaining lease term
Operating leases		3.8 Years		4.2 Years
Finance leases		3.1 Years		3.6 Years
Weighted-average discount rate
Operating leases		15.3%		13.9%
Finance leases		13.5%		13.4%

The interest on financing lease liabilities was $1.7 million and $1.8 million for the years ended December 31, 2023 and 2022, respectively. The amortization expense on finance lease right-of-use assets was $4.0 million and $4.9 million for the years ended December 31, 2023 and 2022, respectively.

Maturities of finance and operating lease liabilities based on lease term for the next five years are as follows:

	Finance		Operating
	Leases		Leases
2024	$	6,093	$	15,558
2025		3,826		12,231
2026		1,034		9,370
2027		795		7,194
2028		812		2,602
2029 and thereafter		830		2,596
Total lease payments		13,390		49,551
Less: Imputed interest		(2,581)		(12,003)
Present value of lease liabilities	$	10,809	$	37,548

Consolidated rental expense for all operating leases was $45.6 million and $48.0 million for the years ended December 31, 2023 and 2022, respectively.

The following table summarizes the cash paid and related right-of-use operating finance or operating lease recognized for the years ended December 31, 2023 and 2022.

		Year Ended		Year Ended
		December 31, 2023		December 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	18,892	$	21,560
Financing cash flows from finance leases		4,570		5,523
Right-of-use lease assets obtained in the exchange for lease liabilities:
Operating leases		10,257		6,940
Finance leases		405		4,790