Leases

3 Months Ended

Mar. 31, 2023

LEASESWe enter into a variety of arrangements in which we are the lessee for the use of automobiles, forklifts and other production equipment, production facilities, warehouses, office space and land. We determine if an arrangement contains a lease at inception. All our lease arrangements are operating leases and are recorded in the condensed consolidated balance sheet under the caption “Other assets” and the lease obligation is under “Other current liabilities” and “Other long-term liabilities.” We do not have any finance leases.

Operating lease right of use (“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. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. We use our incremental borrowing rate based on information available at the commencement date in determining the lease liabilities as our leases generally do not provide an implicit rate. For purposes of recording the lease arrangement, the term of lease may include options to extend or terminate when we are reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term.

The following table sets forth information related to our leases as of the periods indicated.


Dollars in thousands	March 31, 2023			December 31, 2022
Right of use asset	$	29,581		$	25,420
Weighted average discount rate	3.68		%	3.14		%
Weighted average remaining maturity (years)	18.2			21.2

The following table sets forth operating lease expense for the periods indicated:


	March 31,
In thousands	2023		2022
Three months ended	$	1,825	$	1,421

The following table sets forth required remaining future minimum lease payments during the years indicated:


In thousands
2023	$	4,979
2024	5,507
2025	4,623
2026	2,677
2027	2,211
Thereafter	20,147