Leases

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
Lease Type	Classification	2024		2023		2024		2023
Operating lease expense(1)	Operating expenses	$	5,528	$	5,850	$	17,344	$	14,980
Financing lease amortization	Operating expenses	171		133		436		393
Financing lease interest	Interest expense	29		23		78		65
Financing lease expense		200		156		514		458
Sublease income(2)		(160)		—		(266)		—
Net lease cost		$	5,568	$	6,006	$	17,592	$	15,438

(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 September 30, 2024 and December 31, 2023 was as follows (in thousands):

Lease Type	September 30, 2024		December 31, 2023
Total right of use operating lease assets	$	89,806	$	76,340
Total right of use financing lease assets	1,419		1,560
Total lease assets	$	91,225	$	77,900
Total current operating lease obligation	$	18,793	$	13,010
Total current financing lease obligation	494		539
Total current lease obligation	$	19,287	$	13,549
Total long-term operating lease obligation	$	75,093	$	66,234
Total long-term financing lease obligation	805		831
Total long-term lease obligation	$	75,898	$	67,065

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

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total		Sublease Income
Remaining 2024	$	6,445	$	160	$	6,605	$	157
2025	24,427		533		24,960		640
2026	20,298		435		20,733		326
2027	17,345		203		17,548		—
2028	14,688		96		14,784		—
Thereafter	36,912		15		36,927		—
Total lease payments	120,115		1,442		121,557		1,123
Less: Interest	(26,229)		(143)		(26,372)		—
Present value of lease liabilities	$	93,886	$	1,299	$	95,185	$	1,123

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

	September 30, 2024		December 31, 2023
	Operating Leases	Finance Leases	Operating Leases	Finance Leases
Weighted average remaining lease term	5.8 years	3.5 years	6.6 years	2.8 years
Weighted average interest rate	7.7%	7.5%	7.8%	7.1%

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

		Nine Months Ended September 30,
Cash Flow Source	Classification	2024		2023
Operating cash flows from operating leases	Operating activities	$	(15,516)	$	(9,083)
Operating cash flows from financing leases	Operating activities	(77)		(186)
Financing cash flows from financing leases	Financing activities	(462)		(358)

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 September 30,				Nine Months Ended September 30,
Lease Type	Classification	2024		2023		2024		2023
Operating lease expense(1)	Operating expenses	$	5,528	$	5,850	$	17,344	$	14,980
Financing lease amortization	Operating expenses	171		133		436		393
Financing lease interest	Interest expense	29		23		78		65
Financing lease expense		200		156		514		458
Sublease income(2)		(160)		—		(266)		—
Net lease cost		$	5,568	$	6,006	$	17,592	$	15,438

(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 September 30, 2024 and December 31, 2023 was as follows (in thousands):

Lease Type	September 30, 2024		December 31, 2023
Total right of use operating lease assets	$	89,806	$	76,340
Total right of use financing lease assets	1,419		1,560
Total lease assets	$	91,225	$	77,900
Total current operating lease obligation	$	18,793	$	13,010
Total current financing lease obligation	494		539
Total current lease obligation	$	19,287	$	13,549
Total long-term operating lease obligation	$	75,093	$	66,234
Total long-term financing lease obligation	805		831
Total long-term lease obligation	$	75,898	$	67,065

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

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total		Sublease Income
Remaining 2024	$	6,445	$	160	$	6,605	$	157
2025	24,427		533		24,960		640
2026	20,298		435		20,733		326
2027	17,345		203		17,548		—
2028	14,688		96		14,784		—
Thereafter	36,912		15		36,927		—
Total lease payments	120,115		1,442		121,557		1,123
Less: Interest	(26,229)		(143)		(26,372)		—
Present value of lease liabilities	$	93,886	$	1,299	$	95,185	$	1,123

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

	September 30, 2024		December 31, 2023
	Operating Leases	Finance Leases	Operating Leases	Finance Leases
Weighted average remaining lease term	5.8 years	3.5 years	6.6 years	2.8 years
Weighted average interest rate	7.7%	7.5%	7.8%	7.1%

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

		Nine Months Ended September 30,
Cash Flow Source	Classification	2024		2023
Operating cash flows from operating leases	Operating activities	$	(15,516)	$	(9,083)
Operating cash flows from financing leases	Operating activities	(77)		(186)
Financing cash flows from financing leases	Financing activities	(462)		(358)

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 September 30,				Nine Months Ended September 30,
Lease Type	Classification	2024		2023		2024		2023
Operating lease expense(1)	Operating expenses	$	5,528	$	5,850	$	17,344	$	14,980
Financing lease amortization	Operating expenses	171		133		436		393
Financing lease interest	Interest expense	29		23		78		65
Financing lease expense		200		156		514		458
Sublease income(2)		(160)		—		(266)		—
Net lease cost		$	5,568	$	6,006	$	17,592	$	15,438

(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 September 30, 2024 and December 31, 2023 was as follows (in thousands):

Lease Type	September 30, 2024		December 31, 2023
Total right of use operating lease assets	$	89,806	$	76,340
Total right of use financing lease assets	1,419		1,560
Total lease assets	$	91,225	$	77,900
Total current operating lease obligation	$	18,793	$	13,010
Total current financing lease obligation	494		539
Total current lease obligation	$	19,287	$	13,549
Total long-term operating lease obligation	$	75,093	$	66,234
Total long-term financing lease obligation	805		831
Total long-term lease obligation	$	75,898	$	67,065

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

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total		Sublease Income
Remaining 2024	$	6,445	$	160	$	6,605	$	157
2025	24,427		533		24,960		640
2026	20,298		435		20,733		326
2027	17,345		203		17,548		—
2028	14,688		96		14,784		—
Thereafter	36,912		15		36,927		—
Total lease payments	120,115		1,442		121,557		1,123
Less: Interest	(26,229)		(143)		(26,372)		—
Present value of lease liabilities	$	93,886	$	1,299	$	95,185	$	1,123

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

	September 30, 2024		December 31, 2023
	Operating Leases	Finance Leases	Operating Leases	Finance Leases
Weighted average remaining lease term	5.8 years	3.5 years	6.6 years	2.8 years
Weighted average interest rate	7.7%	7.5%	7.8%	7.1%

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

		Nine Months Ended September 30,
Cash Flow Source	Classification	2024		2023
Operating cash flows from operating leases	Operating activities	$	(15,516)	$	(9,083)
Operating cash flows from financing leases	Operating activities	(77)		(186)
Financing cash flows from financing leases	Financing activities	(462)		(358)

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