LEASES

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases, Operating

10. LEASES

The Corporation conducts a portion of its operations from leased facilities, which include manufacturing and service facilities, administrative offices, and warehouses. In addition, the Corporation leases machinery and office equipment under operating leases. Our leases have remaining lease terms ranging from approximately 1 year to 15 years, some of which include options for renewals, escalations, or terminations. Rental expenses for all operating leases amounted to $42 million, $42 million, and $41 million for the years ended December 31, 2022, 2021, and 2020, respectively.

Generally, the Corporation's lease contracts do not provide a readily determinable interest rate. Accordingly, the Corporation determines the incremental borrowing rate as of the lease commencement date in order to calculate the present value of its lease payments. The incremental borrowing rate is determined based on information available at the lease commencement date, including the lease term, market rates for the Corporation’s outstanding debt, as well as market rates for debt of companies with similar credit ratings.

The components of lease expense were as follows:

	Year Ended
(In thousands)	December 31, 2022		December 31, 2021
Operating lease cost	$	42,125	$	41,663
Finance lease cost:
Depreciation of finance leases	$	1,037	$	1,037
Interest on lease liabilities	390		431
Total finance lease cost	$	1,427	$	1,468

Supplemental cash flow information related to leases was as follows:

	Year Ended
(In thousands)	December 31, 2022		December 31, 2021
Cash used for operating activities:
Operating cash flows used for operating leases	$	(34,186)	$	(33,352)
Operating cash flows used for finance leases	(390)		(431)
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations	$	17,740	$	9,040

Supplemental balance sheet information related to leases was as follows:

	As of December 31,
(In thousands, except lease term and discount rate)	2022			2021
Operating Leases
Operating lease right-of-use assets, net	$	153,855		$	143,613
Other current liabilities	$	29,910		$	25,389
Long-term operating lease liability	132,275			127,152
Total operating lease liabilities	$	162,185		$	152,541
Finance Leases
Property, plant, and equipment	$	15,561		$	15,561
Accumulated depreciation	(8,645)			(7,608)
Property, plant, and equipment, net	$	6,916		$	7,953
Other current liabilities	$	1,098		$	1,019
Other liabilities	7,924			9,022
Total finance lease liabilities	$	9,022		$	10,041
Weighted average remaining lease term
Operating leases	7.5 years			8.3 years
Finance leases	6.7 years			7.7 years
Weighted average discount rate
Operating leases	3.80		%	3.51		%
Finance leases	4.05		%	4.05		%

Maturities of lease liabilities were as follows:

	As of December 31, 2022
(In thousands)	Operating Leases		Finance Leases
2023	$	35,688	$	1,445
2024	32,830		1,481
2025	25,728		1,518
2026	21,025		1,556
2027	15,787		1,595
Thereafter	57,854		2,743
Total lease payments	188,912		10,338
Less: imputed interest	(26,727)		(1,316)
Total	$	162,185	$	9,022

Leases, Finance

10. LEASES

The Corporation conducts a portion of its operations from leased facilities, which include manufacturing and service facilities, administrative offices, and warehouses. In addition, the Corporation leases machinery and office equipment under operating leases. Our leases have remaining lease terms ranging from approximately 1 year to 15 years, some of which include options for renewals, escalations, or terminations. Rental expenses for all operating leases amounted to $42 million, $42 million, and $41 million for the years ended December 31, 2022, 2021, and 2020, respectively.

Generally, the Corporation's lease contracts do not provide a readily determinable interest rate. Accordingly, the Corporation determines the incremental borrowing rate as of the lease commencement date in order to calculate the present value of its lease payments. The incremental borrowing rate is determined based on information available at the lease commencement date, including the lease term, market rates for the Corporation’s outstanding debt, as well as market rates for debt of companies with similar credit ratings.

The components of lease expense were as follows:

	Year Ended
(In thousands)	December 31, 2022		December 31, 2021
Operating lease cost	$	42,125	$	41,663
Finance lease cost:
Depreciation of finance leases	$	1,037	$	1,037
Interest on lease liabilities	390		431
Total finance lease cost	$	1,427	$	1,468

Supplemental cash flow information related to leases was as follows:

	Year Ended
(In thousands)	December 31, 2022		December 31, 2021
Cash used for operating activities:
Operating cash flows used for operating leases	$	(34,186)	$	(33,352)
Operating cash flows used for finance leases	(390)		(431)
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations	$	17,740	$	9,040

Supplemental balance sheet information related to leases was as follows:

	As of December 31,
(In thousands, except lease term and discount rate)	2022			2021
Operating Leases
Operating lease right-of-use assets, net	$	153,855		$	143,613
Other current liabilities	$	29,910		$	25,389
Long-term operating lease liability	132,275			127,152
Total operating lease liabilities	$	162,185		$	152,541
Finance Leases
Property, plant, and equipment	$	15,561		$	15,561
Accumulated depreciation	(8,645)			(7,608)
Property, plant, and equipment, net	$	6,916		$	7,953
Other current liabilities	$	1,098		$	1,019
Other liabilities	7,924			9,022
Total finance lease liabilities	$	9,022		$	10,041
Weighted average remaining lease term
Operating leases	7.5 years			8.3 years
Finance leases	6.7 years			7.7 years
Weighted average discount rate
Operating leases	3.80		%	3.51		%
Finance leases	4.05		%	4.05		%

Maturities of lease liabilities were as follows:

	As of December 31, 2022
(In thousands)	Operating Leases		Finance Leases
2023	$	35,688	$	1,445
2024	32,830		1,481
2025	25,728		1,518
2026	21,025		1,556
2027	15,787		1,595
Thereafter	57,854		2,743
Total lease payments	188,912		10,338
Less: imputed interest	(26,727)		(1,316)
Total	$	162,185	$	9,022