Leases

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Leases

NOTE 10. LEASES

We have operating and finance leases for certain facilities and equipment used in operations. Our leases generally have remaining lease terms of up to 15 years. Some of our real estate operating leases contain renewal options that may be exercised, and some of our leases include options to terminate the leases within one year.

We have recognized a right-of-use asset for both operating and finance leases and an operating lease liability that represents the present value of our obligation to make payments over the lease term. The present value of the lease payments is calculated using the incremental borrowing rate for operating and finance leases, which was determined using a portfolio approach based on the rate of interest that we would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. We use the unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate in the currency of the lease, which will be updated on a quarterly basis for measurement of new lease liabilities.

The components of lease expense were as follows:

	Three months ended				Nine months ended
	September 30,				September 30,
	2022		2021		2022		2021
Operating lease cost	$	1,368	$	1,343	$	4,072	$	4,021
Finance lease cost:
Amortization of right-of-use assets	$	55	$	47	$	149	$	134
Interest on lease obligation	39		38		120		108
Total finance lease cost	$	94	$	85	$	269	$	242

The following table provides supplemental cash flows information related to leases:

	Nine months ended
	September 30,
	2022		2021
Cash Flows from Operating Activities
Cash paid for amounts included in lease obligations:
Operating cash flows for operating leases	$	3,507	$	3,442
Supplemental Lease Cash Flow Disclosures
Operating lease right-of-use assets obtained in exchange for new       operating lease obligations	2,775		2,667

The following tables set forth supplemental balance sheet information related to leases:

	September 30, 2022			December 31, 2021
Operating Leases
Operating lease right-of-use assets	$	21,782		$	21,824
Accounts payable and accrued liabilities	$	3,468		$	3,393
Operating lease obligation	18,741			18,956
Total operating lease obligation	$	22,209		$	22,349
Finance Leases
Property, plant and equipment, at cost	$	2,612		$	2,494
Accumulated depreciation and amortization	(1,141)			(1,053)
Property, plant and equipment, net	$	1,471		$	1,441
Current portion of long-term debt	$	155		$	127
Long-term debt	1,476			1,442
Total finance lease obligation	$	1,631		$	1,569
	September 30,
	2022			2021
Weighted-Average Remaining Lease Term (years)
Operating leases	8.1			8.2
Finance leases	7.9			9.0
Weighted-Average Discount Rate
Operating leases	3.6		%	3.7		%
Finance leases	7.9		%	8.3		%

The following table provides the expected future minimum maturities of lease obligations:

At September 30, 2022	Operating		Finance
	Leases		Leases
Remainder of 2022	$	1,162	$	70
2023	4,486		279
2024	4,062		270
2025	3,413		274
2026	2,703		253
Thereafter	10,539		1,136
Total lease payments	26,365		2,282
Less: imputed interest	(4,156)		(651)
Total	$	22,209	$	1,631

Leases

NOTE 10. LEASES

We have operating and finance leases for certain facilities and equipment used in operations. Our leases generally have remaining lease terms of up to 15 years. Some of our real estate operating leases contain renewal options that may be exercised, and some of our leases include options to terminate the leases within one year.

We have recognized a right-of-use asset for both operating and finance leases and an operating lease liability that represents the present value of our obligation to make payments over the lease term. The present value of the lease payments is calculated using the incremental borrowing rate for operating and finance leases, which was determined using a portfolio approach based on the rate of interest that we would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. We use the unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate in the currency of the lease, which will be updated on a quarterly basis for measurement of new lease liabilities.

The components of lease expense were as follows:

	Three months ended				Nine months ended
	September 30,				September 30,
	2022		2021		2022		2021
Operating lease cost	$	1,368	$	1,343	$	4,072	$	4,021
Finance lease cost:
Amortization of right-of-use assets	$	55	$	47	$	149	$	134
Interest on lease obligation	39		38		120		108
Total finance lease cost	$	94	$	85	$	269	$	242

The following table provides supplemental cash flows information related to leases:

	Nine months ended
	September 30,
	2022		2021
Cash Flows from Operating Activities
Cash paid for amounts included in lease obligations:
Operating cash flows for operating leases	$	3,507	$	3,442
Supplemental Lease Cash Flow Disclosures
Operating lease right-of-use assets obtained in exchange for new       operating lease obligations	2,775		2,667

The following tables set forth supplemental balance sheet information related to leases:

	September 30, 2022			December 31, 2021
Operating Leases
Operating lease right-of-use assets	$	21,782		$	21,824
Accounts payable and accrued liabilities	$	3,468		$	3,393
Operating lease obligation	18,741			18,956
Total operating lease obligation	$	22,209		$	22,349
Finance Leases
Property, plant and equipment, at cost	$	2,612		$	2,494
Accumulated depreciation and amortization	(1,141)			(1,053)
Property, plant and equipment, net	$	1,471		$	1,441
Current portion of long-term debt	$	155		$	127
Long-term debt	1,476			1,442
Total finance lease obligation	$	1,631		$	1,569
	September 30,
	2022			2021
Weighted-Average Remaining Lease Term (years)
Operating leases	8.1			8.2
Finance leases	7.9			9.0
Weighted-Average Discount Rate
Operating leases	3.6		%	3.7		%
Finance leases	7.9		%	8.3		%

The following table provides the expected future minimum maturities of lease obligations:

At September 30, 2022	Operating		Finance
	Leases		Leases
Remainder of 2022	$	1,162	$	70
2023	4,486		279
2024	4,062		270
2025	3,413		274
2026	2,703		253
Thereafter	10,539		1,136
Total lease payments	26,365		2,282
Less: imputed interest	(4,156)		(651)
Total	$	22,209	$	1,631