LEASES

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

LEASES

We determine if an arrangement is a lease at inception. Operating leases are included in “Operating lease right-of-use (‘ROU’) assets”, “current portion of operating lease obligations” and “operating lease obligations” on our consolidated balance sheets. Finance leases are included in “property, plant and equipment, net”, “current portion of long-term debt and finance lease obligations” and “long-term debt and finance lease obligations” on our consolidated balance sheets.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Variable lease payments and short-term lease payments (leases with initial terms less than twelve months) are expensed as incurred.

We have lease agreements with lease and non-lease components for certain equipment, office, and vehicle leases. We have elected the practical expedient to not separate lease and non-lease components and account for both as a single lease component.

We have operating and finance leases primarily for equipment, real estate, and vehicles. Some of our leases include options to extend the leases for up to 10 years, and some may include options to terminate the leases within 1 year.

The components of lease expense are as follows (in thousands):

	December 31,
	2023		2022
Operating lease costs	$	24,605	$	25,116
Variable lease costs	5,198		5,346
Finance lease costs:
Amortization of right-of-use assets	1,182		765
Interest on lease liabilities	462		421
Total lease cost	$	31,447	$	31,648
Lease cost - discontinued operations	$	—	$	841
Lease cost - continuing operations	$	31,447	$	30,807

Other information related to leases is as follows (in thousands):

	December 31,
	2023		2022
Supplemental cash flow information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	18,823	$	19,032
Operating cash flows from finance leases	446		316
Financing cash flows from finance leases	1,039		885
Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	3,402	$	3,455
Finance leases	$	1,371	$	1,270

Amounts recognized in the consolidated balance sheet are as follows (in thousands):

	December 31,
	2023			2022
Operating Leases:
Operating lease right-of-use assets	$	40,498		$	48,462
Current portion of operating lease obligations	14,232			13,823
Operating lease obligations (non-current)	29,962			38,819
Finance Leases:
Property, plant and equipment, net	$	5,258		$	5,107
Current portion of long-term debt and finance lease obligations	945			960
Long-term debt and finance lease obligations	4,811			4,942
Weighted average remaining lease term
Operating leases	5 years			6 years
Finance leases	8 years			9 years
Weighted average discount rate
Operating leases	8.1		%	7.5		%
Finance lease	8.0		%	7.3		%

As of December 31, 2023, we have no material additional operating and finance leases that have not yet commenced.

As of December 31, 2023, future minimum lease payments under non-cancellable (excluding short-term leases) are as follows (in thousands):

Twelve Months Ended December 31,	Operating Leases		Finance Leases
2024	$	16,519	$	1,307
2025	11,389		1,011
2026	7,426		903
2027	5,855		753
2028	3,091		646
Thereafter	9,138		2,866
Total future minimum lease payments	$	53,418	$	7,486
Less: Interest	9,224		1,730
Present value of lease liabilities	$	44,194	$	5,756

Total rent expense resulting from operating leases, including short-term leases, for the years ended December 31, 2023 and 2022 were $36.4 million and $37.3 million, respectively.

Leases

LEASES

We determine if an arrangement is a lease at inception. Operating leases are included in “Operating lease right-of-use (‘ROU’) assets”, “current portion of operating lease obligations” and “operating lease obligations” on our consolidated balance sheets. Finance leases are included in “property, plant and equipment, net”, “current portion of long-term debt and finance lease obligations” and “long-term debt and finance lease obligations” on our consolidated balance sheets.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Variable lease payments and short-term lease payments (leases with initial terms less than twelve months) are expensed as incurred.

We have lease agreements with lease and non-lease components for certain equipment, office, and vehicle leases. We have elected the practical expedient to not separate lease and non-lease components and account for both as a single lease component.

We have operating and finance leases primarily for equipment, real estate, and vehicles. Some of our leases include options to extend the leases for up to 10 years, and some may include options to terminate the leases within 1 year.

The components of lease expense are as follows (in thousands):

	December 31,
	2023		2022
Operating lease costs	$	24,605	$	25,116
Variable lease costs	5,198		5,346
Finance lease costs:
Amortization of right-of-use assets	1,182		765
Interest on lease liabilities	462		421
Total lease cost	$	31,447	$	31,648
Lease cost - discontinued operations	$	—	$	841
Lease cost - continuing operations	$	31,447	$	30,807

Other information related to leases is as follows (in thousands):

	December 31,
	2023		2022
Supplemental cash flow information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	18,823	$	19,032
Operating cash flows from finance leases	446		316
Financing cash flows from finance leases	1,039		885
Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	3,402	$	3,455
Finance leases	$	1,371	$	1,270

Amounts recognized in the consolidated balance sheet are as follows (in thousands):

	December 31,
	2023			2022
Operating Leases:
Operating lease right-of-use assets	$	40,498		$	48,462
Current portion of operating lease obligations	14,232			13,823
Operating lease obligations (non-current)	29,962			38,819
Finance Leases:
Property, plant and equipment, net	$	5,258		$	5,107
Current portion of long-term debt and finance lease obligations	945			960
Long-term debt and finance lease obligations	4,811			4,942
Weighted average remaining lease term
Operating leases	5 years			6 years
Finance leases	8 years			9 years
Weighted average discount rate
Operating leases	8.1		%	7.5		%
Finance lease	8.0		%	7.3		%

As of December 31, 2023, we have no material additional operating and finance leases that have not yet commenced.

As of December 31, 2023, future minimum lease payments under non-cancellable (excluding short-term leases) are as follows (in thousands):

Twelve Months Ended December 31,	Operating Leases		Finance Leases
2024	$	16,519	$	1,307
2025	11,389		1,011
2026	7,426		903
2027	5,855		753
2028	3,091		646
Thereafter	9,138		2,866
Total future minimum lease payments	$	53,418	$	7,486
Less: Interest	9,224		1,730
Present value of lease liabilities	$	44,194	$	5,756

Total rent expense resulting from operating leases, including short-term leases, for the years ended December 31, 2023 and 2022 were $36.4 million and $37.3 million, respectively.