Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

Note 7 – Leases

Activities as Lessee

The Company leases property used for warehousing, distribution centers, office space, branch locations, equipment and vehicles. The expenses generated by leasing activity for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):

		Three Months Ended September 30,				Nine Months Ended September 30,
Lease Type	Classification	2023		2022		2023		2022
Operating Lease Expense (1)	Operating expenses	$	5,850	$	4,519	$	14,980	$	10,581
Financing Lease Amortization	Operating expenses	133		207		393		471
Financing Lease Interest	Interest expense	23		37		65		68
Financing Lease Expense		156		244		458		539
Net Lease Cost		$	6,006	$	4,763	$	15,438	$	11,120

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

The value of net assets and liabilities related to our operating and finance leases as of September 30, 2023 and December 31, 2022 was as follows (in thousands):

Lease Type	September 30, 2023		December 31, 2022
Total ROU operating lease assets (1)	$	79,791	$	46,755
Total ROU financing lease assets (2)	1,514		1,519
Total lease assets	$	81,305	$	48,274
Total current operating lease liabilities	$	12,711	$	9,480
Total current financing lease liabilities	530		484
Total current lease liabilities	$	13,241	$	9,964
Total long term operating lease liabilities	$	69,558	$	38,898
Total long term financing lease liabilities	795		930
Total long term lease liabilities	$	70,353	$	39,828

(1)Operating lease assets are recorded net of accumulated amortization of $23.2 million as of September 30, 2023 and $14.8 million as of December 31, 2022.

(2)Financing lease assets are recorded net of accumulated amortization as a component of Other assets in the Unaudited Condensed Consolidated Balance Sheet of $1.3 million as of September 30, 2023 and $0.9 million as of December 31, 2022.

The value of lease liabilities related to our operating and finance leases as of September 30, 2023 was as follows (in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total
Remaining 2023	$	5,030	$	165	$	5,195
2024	18,477		558		19,035
2025	18,179		364		18,543
2026	14,406		282		14,688
2027	12,326		95		12,421
Thereafter	40,120		5		40,125
Total lease payments	108,538		1,469		110,007
Less: Interest	(26,269)		(144)		(26,413)
Present value of lease liabilities	$	82,269	$	1,325	$	83,594

The weighted average lease terms and interest rates of leases held as of September 30, 2023 were as follows:

Lease Type	Weighted Average Term in Years	Weighted Average Interest Rate
Operating Leases	6.8	7.8%
Financing Leases	2.8	6.9%

The cash outflows of leasing activity for the nine months ended September 30, 2023 and 2022 were as follows (in thousands):

		Nine Months Ended September 30,
Cash Flow Source	Classification	2023		2022
Operating cash flows from operating leases	Operating activities	$	(9,083)	$	(3,330)
Operating cash flows from financing leases	Operating activities	(186)		37
Financing cash flows from financing leases	Financing activities	(358)		(457)

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

Leases

Note 7 – Leases

Activities as Lessee

The Company leases property used for warehousing, distribution centers, office space, branch locations, equipment and vehicles. The expenses generated by leasing activity for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):

		Three Months Ended September 30,				Nine Months Ended September 30,
Lease Type	Classification	2023		2022		2023		2022
Operating Lease Expense (1)	Operating expenses	$	5,850	$	4,519	$	14,980	$	10,581
Financing Lease Amortization	Operating expenses	133		207		393		471
Financing Lease Interest	Interest expense	23		37		65		68
Financing Lease Expense		156		244		458		539
Net Lease Cost		$	6,006	$	4,763	$	15,438	$	11,120

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

The value of net assets and liabilities related to our operating and finance leases as of September 30, 2023 and December 31, 2022 was as follows (in thousands):

Lease Type	September 30, 2023		December 31, 2022
Total ROU operating lease assets (1)	$	79,791	$	46,755
Total ROU financing lease assets (2)	1,514		1,519
Total lease assets	$	81,305	$	48,274
Total current operating lease liabilities	$	12,711	$	9,480
Total current financing lease liabilities	530		484
Total current lease liabilities	$	13,241	$	9,964
Total long term operating lease liabilities	$	69,558	$	38,898
Total long term financing lease liabilities	795		930
Total long term lease liabilities	$	70,353	$	39,828

(1)Operating lease assets are recorded net of accumulated amortization of $23.2 million as of September 30, 2023 and $14.8 million as of December 31, 2022.

(2)Financing lease assets are recorded net of accumulated amortization as a component of Other assets in the Unaudited Condensed Consolidated Balance Sheet of $1.3 million as of September 30, 2023 and $0.9 million as of December 31, 2022.

The value of lease liabilities related to our operating and finance leases as of September 30, 2023 was as follows (in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total
Remaining 2023	$	5,030	$	165	$	5,195
2024	18,477		558		19,035
2025	18,179		364		18,543
2026	14,406		282		14,688
2027	12,326		95		12,421
Thereafter	40,120		5		40,125
Total lease payments	108,538		1,469		110,007
Less: Interest	(26,269)		(144)		(26,413)
Present value of lease liabilities	$	82,269	$	1,325	$	83,594

The weighted average lease terms and interest rates of leases held as of September 30, 2023 were as follows:

Lease Type	Weighted Average Term in Years	Weighted Average Interest Rate
Operating Leases	6.8	7.8%
Financing Leases	2.8	6.9%

The cash outflows of leasing activity for the nine months ended September 30, 2023 and 2022 were as follows (in thousands):

		Nine Months Ended September 30,
Cash Flow Source	Classification	2023		2022
Operating cash flows from operating leases	Operating activities	$	(9,083)	$	(3,330)
Operating cash flows from financing leases	Operating activities	(186)		37
Financing cash flows from financing leases	Financing activities	(358)		(457)

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

Leases

Note 7 – Leases

Activities as Lessee

The Company leases property used for warehousing, distribution centers, office space, branch locations, equipment and vehicles. The expenses generated by leasing activity for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):

		Three Months Ended September 30,				Nine Months Ended September 30,
Lease Type	Classification	2023		2022		2023		2022
Operating Lease Expense (1)	Operating expenses	$	5,850	$	4,519	$	14,980	$	10,581
Financing Lease Amortization	Operating expenses	133		207		393		471
Financing Lease Interest	Interest expense	23		37		65		68
Financing Lease Expense		156		244		458		539
Net Lease Cost		$	6,006	$	4,763	$	15,438	$	11,120

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

The value of net assets and liabilities related to our operating and finance leases as of September 30, 2023 and December 31, 2022 was as follows (in thousands):

Lease Type	September 30, 2023		December 31, 2022
Total ROU operating lease assets (1)	$	79,791	$	46,755
Total ROU financing lease assets (2)	1,514		1,519
Total lease assets	$	81,305	$	48,274
Total current operating lease liabilities	$	12,711	$	9,480
Total current financing lease liabilities	530		484
Total current lease liabilities	$	13,241	$	9,964
Total long term operating lease liabilities	$	69,558	$	38,898
Total long term financing lease liabilities	795		930
Total long term lease liabilities	$	70,353	$	39,828

(1)Operating lease assets are recorded net of accumulated amortization of $23.2 million as of September 30, 2023 and $14.8 million as of December 31, 2022.

(2)Financing lease assets are recorded net of accumulated amortization as a component of Other assets in the Unaudited Condensed Consolidated Balance Sheet of $1.3 million as of September 30, 2023 and $0.9 million as of December 31, 2022.

The value of lease liabilities related to our operating and finance leases as of September 30, 2023 was as follows (in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total
Remaining 2023	$	5,030	$	165	$	5,195
2024	18,477		558		19,035
2025	18,179		364		18,543
2026	14,406		282		14,688
2027	12,326		95		12,421
Thereafter	40,120		5		40,125
Total lease payments	108,538		1,469		110,007
Less: Interest	(26,269)		(144)		(26,413)
Present value of lease liabilities	$	82,269	$	1,325	$	83,594

The weighted average lease terms and interest rates of leases held as of September 30, 2023 were as follows:

Lease Type	Weighted Average Term in Years	Weighted Average Interest Rate
Operating Leases	6.8	7.8%
Financing Leases	2.8	6.9%

The cash outflows of leasing activity for the nine months ended September 30, 2023 and 2022 were as follows (in thousands):

		Nine Months Ended September 30,
Cash Flow Source	Classification	2023		2022
Operating cash flows from operating leases	Operating activities	$	(9,083)	$	(3,330)
Operating cash flows from financing leases	Operating activities	(186)		37
Financing cash flows from financing leases	Financing activities	(358)		(457)

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