Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

Note 7 – Leases

The Company leases property used for warehousing, distribution centers, office space, branch locations, equipment and vehicles. The expenses generated by leasing activity for the years ended December 31, 2022 and 2021 were as follows (in thousands):

		Year Ended December 31,
Lease Type	Classification	2022		2021
Operating Lease Expense (1)	Operating expenses	$	15,151	$	6,157
Financing Lease Amortization	Operating expenses	466		197
Financing Lease Interest	Interest expense	41		11
Financing Lease Expense		507		208
Net Lease Cost		$	15,658	$	6,365

(1)    Includes short term lease expense, which is immaterial.

The value of net assets and liabilities generated by leasing activity as of December 31, 2022 and December 31, 2021 were as follows (in thousands):

	December 31,
Lease Type	2022		2021
Total ROU operating lease assets (1)	$	46,755	$	19,662
Total ROU financing lease assets (2)	1,519		—
Total lease assets	$	48,274	$	19,662
Total current operating lease obligation	$	9,480	$	4,641
Total current financing lease obligation	484		—
Total current lease obligations	$	9,964	$	4,641
Total long term operating lease obligation	$	38,898	$	16,132
Total long term financing lease obligation	930		—
Total long term lease obligation	$	39,828	$	16,132

(1)    Operating lease assets were recorded net of accumulated amortization of $14.8 million as of December 31, 2022 and $4.3 million as of December 31, 2021.

(2)    Financing lease assets were recorded net of accumulated amortization as a component of Other assets in the Consolidated Balance Sheet of $0.9 million as of December 31, 2022 and $0.0 million as of December 31, 2021.

The value of lease liabilities generated by leasing activities as of December 31, 2022 were as follows (in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total
Year one	$	13,063	$	605	$	13,668
Year two	11,220		434		11,654
Year three	10,316		271		10,587
Year four	6,977		196		7,173
Year five	5,261		71		5,332
Subsequent years	12,355		—		12,355
Total lease payments	59,192		1,577		60,769
Less: Interest	(10,814)		(163)		(10,977)
Present value of lease liabilities	$	48,378	$	1,414	$	49,792

The weighted average lease terms and interest rates of leases held as of December 31, 2022 were as follows:

Lease Type	Weighted Average Term in Years	Weighted Average Interest Rate
Operating Leases	5.6	7.1%
Financing Leases	3.1	6.6%

The cash outflows of leasing activity for the years ended December 31, 2022 and 2021were as follows (in thousands):

		Year Ended December 31,
Cash Flow Source	Classification	2022		2021
Operating cash flows from operating leases	Operating activities	$	(12,149)	$	(6,381)
Operating cash flows from financing leases	Operating activities	(184)		—
Financing cash flows from financing leases	Financing activities	(429)		—

Refer to Note 4 – Revenue Recognition for a discussion on the Company's activities as lessor.

Leases

Note 7 – Leases

The Company leases property used for warehousing, distribution centers, office space, branch locations, equipment and vehicles. The expenses generated by leasing activity for the years ended December 31, 2022 and 2021 were as follows (in thousands):

		Year Ended December 31,
Lease Type	Classification	2022		2021
Operating Lease Expense (1)	Operating expenses	$	15,151	$	6,157
Financing Lease Amortization	Operating expenses	466		197
Financing Lease Interest	Interest expense	41		11
Financing Lease Expense		507		208
Net Lease Cost		$	15,658	$	6,365

(1)    Includes short term lease expense, which is immaterial.

The value of net assets and liabilities generated by leasing activity as of December 31, 2022 and December 31, 2021 were as follows (in thousands):

	December 31,
Lease Type	2022		2021
Total ROU operating lease assets (1)	$	46,755	$	19,662
Total ROU financing lease assets (2)	1,519		—
Total lease assets	$	48,274	$	19,662
Total current operating lease obligation	$	9,480	$	4,641
Total current financing lease obligation	484		—
Total current lease obligations	$	9,964	$	4,641
Total long term operating lease obligation	$	38,898	$	16,132
Total long term financing lease obligation	930		—
Total long term lease obligation	$	39,828	$	16,132

(1)    Operating lease assets were recorded net of accumulated amortization of $14.8 million as of December 31, 2022 and $4.3 million as of December 31, 2021.

(2)    Financing lease assets were recorded net of accumulated amortization as a component of Other assets in the Consolidated Balance Sheet of $0.9 million as of December 31, 2022 and $0.0 million as of December 31, 2021.

The value of lease liabilities generated by leasing activities as of December 31, 2022 were as follows (in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total
Year one	$	13,063	$	605	$	13,668
Year two	11,220		434		11,654
Year three	10,316		271		10,587
Year four	6,977		196		7,173
Year five	5,261		71		5,332
Subsequent years	12,355		—		12,355
Total lease payments	59,192		1,577		60,769
Less: Interest	(10,814)		(163)		(10,977)
Present value of lease liabilities	$	48,378	$	1,414	$	49,792

The weighted average lease terms and interest rates of leases held as of December 31, 2022 were as follows:

Lease Type	Weighted Average Term in Years	Weighted Average Interest Rate
Operating Leases	5.6	7.1%
Financing Leases	3.1	6.6%

The cash outflows of leasing activity for the years ended December 31, 2022 and 2021were as follows (in thousands):

		Year Ended December 31,
Cash Flow Source	Classification	2022		2021
Operating cash flows from operating leases	Operating activities	$	(12,149)	$	(6,381)
Operating cash flows from financing leases	Operating activities	(184)		—
Financing cash flows from financing leases	Financing activities	(429)		—

Refer to Note 4 – Revenue Recognition for a discussion on the Company's activities as lessor.

Leases

Note 7 – Leases

The Company leases property used for warehousing, distribution centers, office space, branch locations, equipment and vehicles. The expenses generated by leasing activity for the years ended December 31, 2022 and 2021 were as follows (in thousands):

		Year Ended December 31,
Lease Type	Classification	2022		2021
Operating Lease Expense (1)	Operating expenses	$	15,151	$	6,157
Financing Lease Amortization	Operating expenses	466		197
Financing Lease Interest	Interest expense	41		11
Financing Lease Expense		507		208
Net Lease Cost		$	15,658	$	6,365

(1)    Includes short term lease expense, which is immaterial.

The value of net assets and liabilities generated by leasing activity as of December 31, 2022 and December 31, 2021 were as follows (in thousands):

	December 31,
Lease Type	2022		2021
Total ROU operating lease assets (1)	$	46,755	$	19,662
Total ROU financing lease assets (2)	1,519		—
Total lease assets	$	48,274	$	19,662
Total current operating lease obligation	$	9,480	$	4,641
Total current financing lease obligation	484		—
Total current lease obligations	$	9,964	$	4,641
Total long term operating lease obligation	$	38,898	$	16,132
Total long term financing lease obligation	930		—
Total long term lease obligation	$	39,828	$	16,132

(1)    Operating lease assets were recorded net of accumulated amortization of $14.8 million as of December 31, 2022 and $4.3 million as of December 31, 2021.

(2)    Financing lease assets were recorded net of accumulated amortization as a component of Other assets in the Consolidated Balance Sheet of $0.9 million as of December 31, 2022 and $0.0 million as of December 31, 2021.

The value of lease liabilities generated by leasing activities as of December 31, 2022 were as follows (in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total
Year one	$	13,063	$	605	$	13,668
Year two	11,220		434		11,654
Year three	10,316		271		10,587
Year four	6,977		196		7,173
Year five	5,261		71		5,332
Subsequent years	12,355		—		12,355
Total lease payments	59,192		1,577		60,769
Less: Interest	(10,814)		(163)		(10,977)
Present value of lease liabilities	$	48,378	$	1,414	$	49,792

The weighted average lease terms and interest rates of leases held as of December 31, 2022 were as follows:

Lease Type	Weighted Average Term in Years	Weighted Average Interest Rate
Operating Leases	5.6	7.1%
Financing Leases	3.1	6.6%

The cash outflows of leasing activity for the years ended December 31, 2022 and 2021were as follows (in thousands):

		Year Ended December 31,
Cash Flow Source	Classification	2022		2021
Operating cash flows from operating leases	Operating activities	$	(12,149)	$	(6,381)
Operating cash flows from financing leases	Operating activities	(184)		—
Financing cash flows from financing leases	Financing activities	(429)		—

Refer to Note 4 – Revenue Recognition for a discussion on the Company's activities as lessor.