Leases

3 Months Ended

Apr. 01, 2022

Leases [Abstract]

Leases

Leases

Following is a summary of the weighted average remaining lease term and the weighted average discount rate for the Company’s leases:

	April 1, 2022		December 31, 2021
Weighted average remaining lease term:
Operating leases	8.0 years		8.3 years
Financing leases	5.0 years		12.5 years
Weighted average discount rate:
Operating leases	3.6	%	3.6	%
Financing leases	5.2	%	3.1	%

During the first quarter of 2022, the Company terminated its financing lease for the Snyder Production Center, which was scheduled to expire on December 31, 2035. See Note 2 for additional information on the lease termination.

Following is a summary of the Company’s leases within the condensed consolidated statements of operations:

	First Quarter
(in thousands)	2022		2021
Operating lease costs	$	7,303	$	6,254
Short-term and variable leases	3,580		3,877
Depreciation expense from financing leases	1,080		1,414
Interest expense on financing lease obligations	470		584
Total lease cost	$	12,433	$	12,129

The future minimum lease payments related to the Company’s leases include renewal options the Company has determined to be reasonably certain and exclude payments to landlords for real estate taxes and common area maintenance. Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of April 1, 2022:

(in thousands)	Operating Leases		Financing Leases
Remainder of 2022	$	20,696	$	2,027
2023	26,590		2,750
2024	22,312		2,808
2025	16,762		2,869
2026	15,597		1,233
Thereafter	65,713		1,304
Total minimum lease payments including interest	$	167,670	$	12,991
Less:  Amounts representing interest	24,300		1,556
Present value of minimum lease principal payments	143,370		11,435
Less:  Current portion of lease liabilities	23,556		2,171
Noncurrent portion of lease liabilities	$	119,814	$	9,264

Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of December 31, 2021:

(in thousands)	Operating Leases		Financing Leases
2022	$	26,026	$	7,145
2023	24,893		7,201
2024	20,639		7,396
2025	16,740		7,593
2026	15,575		6,100
Thereafter	65,695		49,728
Total minimum lease payments including interest	$	169,568	$	85,163
Less:  Amounts representing interest	25,474		14,097
Present value of minimum lease principal payments	144,094		71,066
Less:  Current portion of lease liabilities	22,048		6,060
Noncurrent portion of lease liabilities	$	122,046	$	65,006

Following is a summary of the Company’s leases within the condensed consolidated statements of cash flows:

	First Quarter
(in thousands)	2022		2021
Cash flows from operating activities impact:
Operating leases	$	7,006	$	6,129
Interest payments on financing lease obligations	470		316
Total cash flows from operating activities impact	$	7,476	$	6,445
Cash flows from financing activities impact:
Principal payments on financing lease obligations	$	1,375	$	1,447
Total cash flows from financing activities impact	$	1,375	$	1,447

As of April 1, 2022, the Company had three operating lease commitments that had not yet commenced. These lease commitments have a lease term of approximately three to five years and are expected to commence during the second quarter of 2022. The additional lease liability associated with these lease commitments is expected to be $2.5 million.

Leases

Leases

Following is a summary of the weighted average remaining lease term and the weighted average discount rate for the Company’s leases:

	April 1, 2022		December 31, 2021
Weighted average remaining lease term:
Operating leases	8.0 years		8.3 years
Financing leases	5.0 years		12.5 years
Weighted average discount rate:
Operating leases	3.6	%	3.6	%
Financing leases	5.2	%	3.1	%

During the first quarter of 2022, the Company terminated its financing lease for the Snyder Production Center, which was scheduled to expire on December 31, 2035. See Note 2 for additional information on the lease termination.

Following is a summary of the Company’s leases within the condensed consolidated statements of operations:

	First Quarter
(in thousands)	2022		2021
Operating lease costs	$	7,303	$	6,254
Short-term and variable leases	3,580		3,877
Depreciation expense from financing leases	1,080		1,414
Interest expense on financing lease obligations	470		584
Total lease cost	$	12,433	$	12,129

The future minimum lease payments related to the Company’s leases include renewal options the Company has determined to be reasonably certain and exclude payments to landlords for real estate taxes and common area maintenance. Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of April 1, 2022:

(in thousands)	Operating Leases		Financing Leases
Remainder of 2022	$	20,696	$	2,027
2023	26,590		2,750
2024	22,312		2,808
2025	16,762		2,869
2026	15,597		1,233
Thereafter	65,713		1,304
Total minimum lease payments including interest	$	167,670	$	12,991
Less:  Amounts representing interest	24,300		1,556
Present value of minimum lease principal payments	143,370		11,435
Less:  Current portion of lease liabilities	23,556		2,171
Noncurrent portion of lease liabilities	$	119,814	$	9,264

Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of December 31, 2021:

(in thousands)	Operating Leases		Financing Leases
2022	$	26,026	$	7,145
2023	24,893		7,201
2024	20,639		7,396
2025	16,740		7,593
2026	15,575		6,100
Thereafter	65,695		49,728
Total minimum lease payments including interest	$	169,568	$	85,163
Less:  Amounts representing interest	25,474		14,097
Present value of minimum lease principal payments	144,094		71,066
Less:  Current portion of lease liabilities	22,048		6,060
Noncurrent portion of lease liabilities	$	122,046	$	65,006

Following is a summary of the Company’s leases within the condensed consolidated statements of cash flows:

	First Quarter
(in thousands)	2022		2021
Cash flows from operating activities impact:
Operating leases	$	7,006	$	6,129
Interest payments on financing lease obligations	470		316
Total cash flows from operating activities impact	$	7,476	$	6,445
Cash flows from financing activities impact:
Principal payments on financing lease obligations	$	1,375	$	1,447
Total cash flows from financing activities impact	$	1,375	$	1,447

As of April 1, 2022, the Company had three operating lease commitments that had not yet commenced. These lease commitments have a lease term of approximately three to five years and are expected to commence during the second quarter of 2022. The additional lease liability associated with these lease commitments is expected to be $2.5 million.