Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

NOTE 8. LEASES

We have operating and finance leases for certain facilities and equipment used in our 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 a corresponding 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:

	2022		2021		2020
Operating lease cost	$	5,437	$	5,363	$	5,331
Finance lease cost:
Amortization of right-of-use assets	$	204	$	179	$	185
Interest on lease obligation	159		145		133
Total finance lease cost	$	363	$	324	$	318

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

	2022		2021		2020
Cash Flows from Operating Activities
Cash paid for amounts included in lease obligations:
Operating cash flows from operating leases	$	4,679	$	4,580	$	4,496
Supplemental Lease Cash Flow Disclosures
Operating lease right-of-use assets obtained in exchange for     new operating lease obligations	3,751		3,396		4,057

The following tables set forth supplemental balance sheet information related to leases at December 31:

	2022			2021
Operating Leases
Operating lease right-of-use assets	$	21,814		$	21,824
Accounts payable and accrued liabilities	$	3,547		$	3,393
Operating lease obligation	18,659			18,956
Total operating lease obligation	$	22,206		$	22,349
Finance Leases
Property, plant and equipment, at cost	$	2,770		$	2,494
Accumulated depreciation and amortization	(1,224)			(1,053)
Property, plant and equipment – net	$	1,546		$	1,441
Current portion of long-term debt	$	170		$	127
Long-term debt	1,647			1,442
Total finance lease obligation	$	1,817		$	1,569
	2022			2021
Weighted-Average Remaining Lease Term (years)
Operating leases	8.1			8.2
Finance leases	7.9			8.9
Weighted-Average Discount Rate
Operating leases	3.7		%	3.7		%
Finance leases	8.0		%	8.2		%

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

At December 31, 2022	Operating Leases		Finance Leases
2023	$	4,657	$	315
2024	4,203		306
2025	3,543		315
2026	2,830		291
2027	2,302		290
Thereafter	8,933		1,032
Total lease payments	26,468		2,549
Less: imputed interest	(4,262)		(732)
Total	$	22,206	$	1,817

Leases

NOTE 8. LEASES

We have operating and finance leases for certain facilities and equipment used in our 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 a corresponding 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:

	2022		2021		2020
Operating lease cost	$	5,437	$	5,363	$	5,331
Finance lease cost:
Amortization of right-of-use assets	$	204	$	179	$	185
Interest on lease obligation	159		145		133
Total finance lease cost	$	363	$	324	$	318

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

	2022		2021		2020
Cash Flows from Operating Activities
Cash paid for amounts included in lease obligations:
Operating cash flows from operating leases	$	4,679	$	4,580	$	4,496
Supplemental Lease Cash Flow Disclosures
Operating lease right-of-use assets obtained in exchange for     new operating lease obligations	3,751		3,396		4,057

The following tables set forth supplemental balance sheet information related to leases at December 31:

	2022			2021
Operating Leases
Operating lease right-of-use assets	$	21,814		$	21,824
Accounts payable and accrued liabilities	$	3,547		$	3,393
Operating lease obligation	18,659			18,956
Total operating lease obligation	$	22,206		$	22,349
Finance Leases
Property, plant and equipment, at cost	$	2,770		$	2,494
Accumulated depreciation and amortization	(1,224)			(1,053)
Property, plant and equipment – net	$	1,546		$	1,441
Current portion of long-term debt	$	170		$	127
Long-term debt	1,647			1,442
Total finance lease obligation	$	1,817		$	1,569
	2022			2021
Weighted-Average Remaining Lease Term (years)
Operating leases	8.1			8.2
Finance leases	7.9			8.9
Weighted-Average Discount Rate
Operating leases	3.7		%	3.7		%
Finance leases	8.0		%	8.2		%

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

At December 31, 2022	Operating Leases		Finance Leases
2023	$	4,657	$	315
2024	4,203		306
2025	3,543		315
2026	2,830		291
2027	2,302		290
Thereafter	8,933		1,032
Total lease payments	26,468		2,549
Less: imputed interest	(4,262)		(732)
Total	$	22,206	$	1,817