Leases

6 Months Ended

Jul. 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:

	July 1, 2022		December 31, 2021
Weighted average remaining lease term:
Operating leases	7.8 years		8.3 years
Financing leases	4.8 years		12.5 years
Weighted average discount rate:
Operating leases	3.5	%	3.6	%
Financing leases	5.2	%	3.1	%

On March 17, 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:

	Second Quarter				First Half
(in thousands)	2022		2021		2022		2021
Operating lease costs	$	7,336	$	6,565	$	14,639	$	12,819
Short-term and variable leases	3,695		4,494		7,275		8,371
Depreciation expense from financing leases	412		1,414		1,492		2,828
Interest expense on financing lease obligations	144		579		614		1,163
Total lease cost	$	11,587	$	13,052	$	24,020	$	25,181

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 July 1, 2022:

(in thousands)	Operating Leases		Financing Leases
Remainder of 2022	$	14,441	$	1,354
2023	27,815		2,750
2024	23,315		2,808
2025	17,413		2,869
2026	16,086		1,233
Thereafter	65,939		1,304
Total minimum lease payments including interest	$	165,009	$	12,318
Less:  Amounts representing interest	23,182		1,412
Present value of minimum lease principal payments	141,827		10,906
Less:  Current portion of lease liabilities	24,771		2,214
Noncurrent portion of lease liabilities	$	117,056	$	8,692

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 Half
(in thousands)	2022		2021
Cash flows from operating activities impact:
Operating leases	$	14,056	$	13,689
Interest payments on financing lease obligations	614		1,163
Total cash flows from operating activities impact	$	14,670	$	14,852
Cash flows from financing activities impact:
Principal payments on financing lease obligations	$	1,904	$	2,368
Total cash flows from financing activities impact	$	1,904	$	2,368

Subsequent to quarter-end, the Company entered into an operating lease commitment with a lease term of five years. This lease commitment is expected to commence during the third quarter of 2022. The additional lease liability associated with this lease commitment is expected to be approximately $9.8 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:

	July 1, 2022		December 31, 2021
Weighted average remaining lease term:
Operating leases	7.8 years		8.3 years
Financing leases	4.8 years		12.5 years
Weighted average discount rate:
Operating leases	3.5	%	3.6	%
Financing leases	5.2	%	3.1	%

On March 17, 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:

	Second Quarter				First Half
(in thousands)	2022		2021		2022		2021
Operating lease costs	$	7,336	$	6,565	$	14,639	$	12,819
Short-term and variable leases	3,695		4,494		7,275		8,371
Depreciation expense from financing leases	412		1,414		1,492		2,828
Interest expense on financing lease obligations	144		579		614		1,163
Total lease cost	$	11,587	$	13,052	$	24,020	$	25,181

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 July 1, 2022:

(in thousands)	Operating Leases		Financing Leases
Remainder of 2022	$	14,441	$	1,354
2023	27,815		2,750
2024	23,315		2,808
2025	17,413		2,869
2026	16,086		1,233
Thereafter	65,939		1,304
Total minimum lease payments including interest	$	165,009	$	12,318
Less:  Amounts representing interest	23,182		1,412
Present value of minimum lease principal payments	141,827		10,906
Less:  Current portion of lease liabilities	24,771		2,214
Noncurrent portion of lease liabilities	$	117,056	$	8,692

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 Half
(in thousands)	2022		2021
Cash flows from operating activities impact:
Operating leases	$	14,056	$	13,689
Interest payments on financing lease obligations	614		1,163
Total cash flows from operating activities impact	$	14,670	$	14,852
Cash flows from financing activities impact:
Principal payments on financing lease obligations	$	1,904	$	2,368
Total cash flows from financing activities impact	$	1,904	$	2,368

Subsequent to quarter-end, the Company entered into an operating lease commitment with a lease term of five years. This lease commitment is expected to commence during the third quarter of 2022. The additional lease liability associated with this lease commitment is expected to be approximately $9.8 million.