LEASES

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

LEASES

LEASESThe Company leases its distribution centers and manufacturing facilities from third parties under various non-cancelable lease agreements expiring at various dates through 2033. Also, the Company leases some equipment under finance leases. Certain leases contain escalation provisions and/or renewal options, giving the Company the right to extend the leases by up to 10 years. However, these options are generally not reflected in the calculation of the right-of-use assets and lease liabilities due to uncertainty surrounding the likelihood of renewal. The Company recognizes operating lease costs over the respective lease periods, including short-term and month-to-month leases. The Company has operating subleases which have been accounted for by reference to the underlying asset subject to the lease, primarily as an offset to rent expense within SG&A.

Total ROU assets and lease liabilities were as follows:

		December 31,
	Balance Sheet Classification	2022		2021
Leased assets
Operating ROU assets	Operating lease right-of-use assets	$	65,265	$	45,245
Finance lease assets	Property, plant and equipment, net	2,005		2,365
Total leased assets		$	67,270	$	47,610
Lease liabilities
Current:
Operating leases	Current portion of lease liabilities	$	9,099	$	7,198
Finance leases	Current portion of long-term debt	704		739
Noncurrent:
Operating leases	Long-term lease liabilities	56,299		38,595
Finance leases	Long-term debt	1,200		1,628
Total lease liabilities		$	67,302	$	48,160

Total lease income and costs were as follows:

		For the years ended December 31,
	Classification	2022		2021
Operating lease costs	Selling, general and administrative	$	11,484	$	6,664
Finance lease costs:
Amortization of lease assets	Selling, general and administrative	285		291
Amortization of lease assets	Cost of goods sold	327		—
Interest on lease liabilities	Interest expense	61		33
Sublease income	Selling, general and administrative	(1,533)		(277)

In addition to the operating lease costs above, short-term and month-to-month lease expense was $341 and $2,268 for the years ended December 31, 2022, and 2021, respectively, and other costs associated with operating leases were $2,573 and $1,957, respectively, for non-lease components such as common area maintenance and other miscellaneous items. These costs were included within SG&A in the consolidated statements of operations.

The aggregate future minimum lease payments under long-term non-cancelable operating and finance leases with remaining terms greater than one year as of December 31, 2022, are as follows:

Year ending December 31,	Operating		Finance
2023	$	11,463	$	760
2024	11,043		634
2025	10,466		481
2026	9,180		63
2027	8,941		69
Thereafter	25,016		—
Total rental payments	76,109		2,007
Less portion representing interest	10,711		103
Total principal	65,398		1,904
Less current portion	9,099		704
Long-term portion	$	56,299	$	1,200

The following table summarizes the weighted-average remaining lease term as of December 31, 2022, and 2021, as well as the weighted-average discount rate on long-term leases for the years ended December 31, 2022, and 2021:

	December 31,
	2022		2021
Weighted-average remaining lease term in years:
Operating leases	7.1		6.8
Finance leases	3.1		3.5
Weighted-average discount rate:
Operating leases	4.00	%	3.32	%
Finance leases	3.63	%	4.62	%

Cash paid for amounts included in lease liabilities in 2022, and 2021 were:

	For the years ended December 31,
Cash paid for amounts included in lease liabilities:	2022		2021
Operating cash flows from operating leases	$	(9,035)	$	(5,675)
Operating cash flows from finance leases	(61)		(33)
Financing cash flows from finance leases	(756)		(302)

LEASES

LEASESThe Company leases its distribution centers and manufacturing facilities from third parties under various non-cancelable lease agreements expiring at various dates through 2033. Also, the Company leases some equipment under finance leases. Certain leases contain escalation provisions and/or renewal options, giving the Company the right to extend the leases by up to 10 years. However, these options are generally not reflected in the calculation of the right-of-use assets and lease liabilities due to uncertainty surrounding the likelihood of renewal. The Company recognizes operating lease costs over the respective lease periods, including short-term and month-to-month leases. The Company has operating subleases which have been accounted for by reference to the underlying asset subject to the lease, primarily as an offset to rent expense within SG&A.

Total ROU assets and lease liabilities were as follows:

		December 31,
	Balance Sheet Classification	2022		2021
Leased assets
Operating ROU assets	Operating lease right-of-use assets	$	65,265	$	45,245
Finance lease assets	Property, plant and equipment, net	2,005		2,365
Total leased assets		$	67,270	$	47,610
Lease liabilities
Current:
Operating leases	Current portion of lease liabilities	$	9,099	$	7,198
Finance leases	Current portion of long-term debt	704		739
Noncurrent:
Operating leases	Long-term lease liabilities	56,299		38,595
Finance leases	Long-term debt	1,200		1,628
Total lease liabilities		$	67,302	$	48,160

Total lease income and costs were as follows:

		For the years ended December 31,
	Classification	2022		2021
Operating lease costs	Selling, general and administrative	$	11,484	$	6,664
Finance lease costs:
Amortization of lease assets	Selling, general and administrative	285		291
Amortization of lease assets	Cost of goods sold	327		—
Interest on lease liabilities	Interest expense	61		33
Sublease income	Selling, general and administrative	(1,533)		(277)

In addition to the operating lease costs above, short-term and month-to-month lease expense was $341 and $2,268 for the years ended December 31, 2022, and 2021, respectively, and other costs associated with operating leases were $2,573 and $1,957, respectively, for non-lease components such as common area maintenance and other miscellaneous items. These costs were included within SG&A in the consolidated statements of operations.

The aggregate future minimum lease payments under long-term non-cancelable operating and finance leases with remaining terms greater than one year as of December 31, 2022, are as follows:

Year ending December 31,	Operating		Finance
2023	$	11,463	$	760
2024	11,043		634
2025	10,466		481
2026	9,180		63
2027	8,941		69
Thereafter	25,016		—
Total rental payments	76,109		2,007
Less portion representing interest	10,711		103
Total principal	65,398		1,904
Less current portion	9,099		704
Long-term portion	$	56,299	$	1,200

The following table summarizes the weighted-average remaining lease term as of December 31, 2022, and 2021, as well as the weighted-average discount rate on long-term leases for the years ended December 31, 2022, and 2021:

	December 31,
	2022		2021
Weighted-average remaining lease term in years:
Operating leases	7.1		6.8
Finance leases	3.1		3.5
Weighted-average discount rate:
Operating leases	4.00	%	3.32	%
Finance leases	3.63	%	4.62	%

Cash paid for amounts included in lease liabilities in 2022, and 2021 were:

	For the years ended December 31,
Cash paid for amounts included in lease liabilities:	2022		2021
Operating cash flows from operating leases	$	(9,035)	$	(5,675)
Operating cash flows from finance leases	(61)		(33)
Financing cash flows from finance leases	(756)		(302)