Leases

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Leases

Note 7 – Leases

The Company leases property used for warehousing, distribution centers, office space, branch locations, equipment and vehicles. The components of lease cost were as follows (in thousands):

		Three Months Ended June 30,				Six Months Ended June 30,
Lease Type	Classification	2024		2023		2024		2023
Operating Lease Expense(1)	Operating expenses	$	6,086	$	4,519	$	11,816	$	9,399
Financing Lease Amortization	Operating expenses	136		136		265		260
Financing Lease Interest	Interest expense	26		23		49		44
Financing Lease Expense		162		159		314		304
Sublease income(2)		(106)		—		(106)		—
Net Lease Cost		$	6,142	$	4,678	$	12,024	$	9,703

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

(2)    The Company subleases one of its leased properties with a remaining lease term of approximately 2 years that terminates on June 30, 2026. Sublease income is recognized on a straight-line basis over the sublease agreement and is recorded as an offset to operating lease expense.

The value of net assets and liabilities related to our operating and finance leases as of June 30, 2024 and December 31, 2023 was as follows (in thousands):

Lease Type	June 30, 2024		December 31, 2023
Total ROU operating lease assets	$	84,878	$	76,340
Total ROU financing lease assets	1,640		1,560
Total lease assets	$	86,518	$	77,900
Total current operating lease obligation	$	16,330	$	13,010
Total current financing lease obligation	547		539
Total current lease obligation	$	16,877	$	13,549
Total long-term operating lease obligation	$	72,571	$	66,234
Total long-term financing lease obligation	909		831
Total long-term lease obligation	$	73,480	$	67,065

The value of lease liabilities related to our operating and finance leases and sublease income as of June 30, 2024 was as follows (in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total		Sublease Income
Remaining 2024	$	10,873	$	359	$	11,232	$	315
2025	21,567		523		22,090		640
2026	17,871		429		18,300		326
2027	15,904		200		16,104		—
2028	13,915		95		14,010		—
Thereafter	35,414		16		35,430		—
Total lease payments	115,544		1,622		117,166		1,281
Less: Interest	(26,643)		(166)		(26,809)		—
Present value of lease liabilities	$	88,901	$	1,456	$	90,357	$	1,281

The weighted average lease terms and interest rates of leases held as of June 30, 2024 and December 31, 2023 were as follows:

	June 30, 2024		December 31, 2023
	Operating Leases	Finance Leases	Operating Leases	Finance Leases
Weighted average remaining lease term	6.0 years	3.6 years	6.6 years	2.8 years
Weighted average interest rate	7.8%	7.4%	7.8%	7.1%

The cash outflows of leasing activity for the six months ended June 30, 2024 and 2023 were as follows (in thousands):

		Six Months Ended June 30,
Cash Flow Source	Classification	2024		2023
Operating cash flows from operating leases	Operating activities	$	(9,786)	$	(6,710)
Operating cash flows from financing leases	Operating activities	(97)		(121)
Financing cash flows from financing leases	Financing activities	(237)		(249)

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 components of lease cost were as follows (in thousands):

		Three Months Ended June 30,				Six Months Ended June 30,
Lease Type	Classification	2024		2023		2024		2023
Operating Lease Expense(1)	Operating expenses	$	6,086	$	4,519	$	11,816	$	9,399
Financing Lease Amortization	Operating expenses	136		136		265		260
Financing Lease Interest	Interest expense	26		23		49		44
Financing Lease Expense		162		159		314		304
Sublease income(2)		(106)		—		(106)		—
Net Lease Cost		$	6,142	$	4,678	$	12,024	$	9,703

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

(2)    The Company subleases one of its leased properties with a remaining lease term of approximately 2 years that terminates on June 30, 2026. Sublease income is recognized on a straight-line basis over the sublease agreement and is recorded as an offset to operating lease expense.

The value of net assets and liabilities related to our operating and finance leases as of June 30, 2024 and December 31, 2023 was as follows (in thousands):

Lease Type	June 30, 2024		December 31, 2023
Total ROU operating lease assets	$	84,878	$	76,340
Total ROU financing lease assets	1,640		1,560
Total lease assets	$	86,518	$	77,900
Total current operating lease obligation	$	16,330	$	13,010
Total current financing lease obligation	547		539
Total current lease obligation	$	16,877	$	13,549
Total long-term operating lease obligation	$	72,571	$	66,234
Total long-term financing lease obligation	909		831
Total long-term lease obligation	$	73,480	$	67,065

The value of lease liabilities related to our operating and finance leases and sublease income as of June 30, 2024 was as follows (in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total		Sublease Income
Remaining 2024	$	10,873	$	359	$	11,232	$	315
2025	21,567		523		22,090		640
2026	17,871		429		18,300		326
2027	15,904		200		16,104		—
2028	13,915		95		14,010		—
Thereafter	35,414		16		35,430		—
Total lease payments	115,544		1,622		117,166		1,281
Less: Interest	(26,643)		(166)		(26,809)		—
Present value of lease liabilities	$	88,901	$	1,456	$	90,357	$	1,281

The weighted average lease terms and interest rates of leases held as of June 30, 2024 and December 31, 2023 were as follows:

	June 30, 2024		December 31, 2023
	Operating Leases	Finance Leases	Operating Leases	Finance Leases
Weighted average remaining lease term	6.0 years	3.6 years	6.6 years	2.8 years
Weighted average interest rate	7.8%	7.4%	7.8%	7.1%

The cash outflows of leasing activity for the six months ended June 30, 2024 and 2023 were as follows (in thousands):

		Six Months Ended June 30,
Cash Flow Source	Classification	2024		2023
Operating cash flows from operating leases	Operating activities	$	(9,786)	$	(6,710)
Operating cash flows from financing leases	Operating activities	(97)		(121)
Financing cash flows from financing leases	Financing activities	(237)		(249)

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 components of lease cost were as follows (in thousands):

		Three Months Ended June 30,				Six Months Ended June 30,
Lease Type	Classification	2024		2023		2024		2023
Operating Lease Expense(1)	Operating expenses	$	6,086	$	4,519	$	11,816	$	9,399
Financing Lease Amortization	Operating expenses	136		136		265		260
Financing Lease Interest	Interest expense	26		23		49		44
Financing Lease Expense		162		159		314		304
Sublease income(2)		(106)		—		(106)		—
Net Lease Cost		$	6,142	$	4,678	$	12,024	$	9,703

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

(2)    The Company subleases one of its leased properties with a remaining lease term of approximately 2 years that terminates on June 30, 2026. Sublease income is recognized on a straight-line basis over the sublease agreement and is recorded as an offset to operating lease expense.

The value of net assets and liabilities related to our operating and finance leases as of June 30, 2024 and December 31, 2023 was as follows (in thousands):

Lease Type	June 30, 2024		December 31, 2023
Total ROU operating lease assets	$	84,878	$	76,340
Total ROU financing lease assets	1,640		1,560
Total lease assets	$	86,518	$	77,900
Total current operating lease obligation	$	16,330	$	13,010
Total current financing lease obligation	547		539
Total current lease obligation	$	16,877	$	13,549
Total long-term operating lease obligation	$	72,571	$	66,234
Total long-term financing lease obligation	909		831
Total long-term lease obligation	$	73,480	$	67,065

The value of lease liabilities related to our operating and finance leases and sublease income as of June 30, 2024 was as follows (in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total		Sublease Income
Remaining 2024	$	10,873	$	359	$	11,232	$	315
2025	21,567		523		22,090		640
2026	17,871		429		18,300		326
2027	15,904		200		16,104		—
2028	13,915		95		14,010		—
Thereafter	35,414		16		35,430		—
Total lease payments	115,544		1,622		117,166		1,281
Less: Interest	(26,643)		(166)		(26,809)		—
Present value of lease liabilities	$	88,901	$	1,456	$	90,357	$	1,281

The weighted average lease terms and interest rates of leases held as of June 30, 2024 and December 31, 2023 were as follows:

	June 30, 2024		December 31, 2023
	Operating Leases	Finance Leases	Operating Leases	Finance Leases
Weighted average remaining lease term	6.0 years	3.6 years	6.6 years	2.8 years
Weighted average interest rate	7.8%	7.4%	7.8%	7.1%

The cash outflows of leasing activity for the six months ended June 30, 2024 and 2023 were as follows (in thousands):

		Six Months Ended June 30,
Cash Flow Source	Classification	2024		2023
Operating cash flows from operating leases	Operating activities	$	(9,786)	$	(6,710)
Operating cash flows from financing leases	Operating activities	(97)		(121)
Financing cash flows from financing leases	Financing activities	(237)		(249)

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