Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

LEASES

We 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 and office space. We determine if an arrangement contains a lease at inception. All our lease arrangements are operating leases and are recorded in the consolidated balance sheet under the caption “Other assets” and the lease obligation is under “Other current liabilities” and “Other long-term liabilities.” We currently 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. Lease terms 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.

We also have arrangements with both lease and non-lease components. We elected the practical expedients not to separate non-lease components from lease components for our real estate and automobile leases and the lack of need to reassess classification. We elected to apply the short-term lease measurement and recognition exemption in which ROU assets and lease liabilities are not recognized for arrangements less than twelve months in duration.

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

	December 31,
Dollars in thousands	2023			2022
Right of use asset	$	24,991		$	25,420
Weighted average discount rate	3.63		%	3.14		%
Weighted average remaining maturity (years)	20			21

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

	December 31,
In thousands	2023		2022
Operating lease expense	$	6,685	$	5,867

The following table sets forth required minimum lease payments for the years indicated:

In thousands
2024	$	5,671
2025	4,693
2026	2,775
2027	2,295
2028	1,694
Thereafter	18,542