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Leases and Commitments (Notes)
 9 Months Ended
Sep. 30, 2022
Leases [Abstract]  
Lessee, Finance Leases
Leases and Commitments

The company reviews new contracts to determine if the contracts include a lease. To the extent a lease agreement includes an extension option that is reasonably certain to be exercised, the company has recognized those amounts as part of the right-of-use assets and lease liabilities. The company combines lease and certain non-lease components, such as common area maintenance, in the calculation of the lease assets and related liabilities. As most lease agreements do not provide an implicit rate, the company uses an incremental borrowing rate (IBR) based on information available at commencement date in determining the present value of lease payments and to help classify the lease as operating or financing. The company calculates its IBR based on the secured rates of the company's recent debt issuances, the credit rating of the company, changes in currencies, lease repayment timing as well as other publicly available data.

The company leases a portion of its facilities, transportation equipment, data processing equipment and certain other equipment. These leases have terms from 1 to 20 years and provide for renewal options. Generally, the company is required to pay taxes and normal expenses associated with operating the facilities and equipment. As of September 30, 2022, the company is committed under non-cancelable leases, which have initial or remaining terms in excess of one year and expire on various dates through 2040.

On April 23, 2015, the company sold and leased back, under four separate lease agreements, four properties located in Ohio and one property in Florida for net proceeds of $23,000,000, which were used to reduce debt under the U.S. and Canadian Credit Facility. The initial total annual rent for the properties was $2,275,000 and can increase annually over the 20-year term of the leases based on the applicable geographical consumer price index (CPI). Each of the four lease agreements contains three 10-year renewals with the rent for each option term based on the greater of the then-current fair market rent for each property or the then- current rate and increasing annually by the applicable CPI. Under the terms of the lease agreements, the company is responsible for all taxes, insurance and utilities. The company is required to adequately maintain each of the properties and any leasehold improvements will be amortized over the lesser of the lives of the improvements or the remaining lease lives, consistent with any other company leases.

In connection with the transaction, the requirements for sale lease-back accounting were met. Accordingly, the company recorded the sale of the properties, removed the related property and equipment from the company's balance sheet, recognized an initial deferred gain of $7,414,000 and an immediate loss of $257,000 related to one property and recorded new lease liabilities. Specifically, the company
recorded four finance leases totaling $32,339,000 and one operating lease related to leased land, which was not a material component of the transaction. The gains on the sales of the properties were required to be deferred and recognized over the life of the leases as the property sold is being leased back. The deferred gain is classified under Other Long-Term Obligations on the condensed consolidated balance sheets.
Lease expenses for the three and nine months ended September 30, 2022 and September 30, 2021, respectively, were as follows (in thousands):
For the Three Months Ended September 30,For the Nine Months Ended September 30,
2022202120222021
Operating leases$1,391 $1,811 $4,421 $5,592 
Variable and short-term leases616 764 1,961 2,825 
Total operating leases$2,007 $2,575 $6,382 $8,417 
Finance lease interest cost$1,062 $1,146 $3,224 $3,487 
Finance lease depreciation1,055 1,265 3,210 3,807 
Total finance leases$2,117 $2,411 $6,434 $7,294 






















Future minimum operating and finance lease commitments, as of September 30, 2022, are as follows (in thousands):
Finance 
Leases		Operating Leases
2022$1,637 $1,100 
20236,501 3,192 
20246,443 2,452 
20256,353 1,973 
20266,248 1,209 
Thereafter65,253 1,615 
Total future minimum lease payments92,435 11,541 
Amounts representing interest(31,893)(1,614)
Present value of minimum lease payments60,542 9,927 
Less: current maturities of lease obligations(3,031)(3,062)
Long-term lease obligations$57,511 $6,865 
Supplemental cash flow amounts for the three and nine months ended September 30, 2022 and September 30, 2021 were as follows (in thousands):
For the Three Months Ended September 30,For the Nine Months Ended September 30,
Cash Activity: Cash paid in measurement of amounts for lease liabilities2022202120222021
Operating leases$1,967 $2,584 $6,266 $8,501 
Finance leases1,810 2,100 5,478 6,311 
Total$3,777 $4,684 $11,744 $14,812 
Non-Cash Activity: Right-of-use assets obtained in exchange for lease obligations2022202120222021
Operating leases$1,264 $989 $2,429 $5,418 
Finance leases54 189 969 6,345 
Total$1,318 $1,178 $3,398 $11,763 











Weighted-average remaining lease terms and discount rates for finance and operating leases are as follows as of September 30, 2022 and December 31, 2021, respectively:
September 30, 2022December 31, 2021
Weighted-average remaining lease term - finance leases14.9 years15.8 years
Weighted-average remaining lease term - operating leases4.8 years5.0 years
Weighted-average discount rate - finance leases6.37%6.43%
Weighted-average discount rate - operating leases8.07%7.10%
Lessee, Operating Leases
Leases and Commitments

The company reviews new contracts to determine if the contracts include a lease. To the extent a lease agreement includes an extension option that is reasonably certain to be exercised, the company has recognized those amounts as part of the right-of-use assets and lease liabilities. The company combines lease and certain non-lease components, such as common area maintenance, in the calculation of the lease assets and related liabilities. As most lease agreements do not provide an implicit rate, the company uses an incremental borrowing rate (IBR) based on information available at commencement date in determining the present value of lease payments and to help classify the lease as operating or financing. The company calculates its IBR based on the secured rates of the company's recent debt issuances, the credit rating of the company, changes in currencies, lease repayment timing as well as other publicly available data.

The company leases a portion of its facilities, transportation equipment, data processing equipment and certain other equipment. These leases have terms from 1 to 20 years and provide for renewal options. Generally, the company is required to pay taxes and normal expenses associated with operating the facilities and equipment. As of September 30, 2022, the company is committed under non-cancelable leases, which have initial or remaining terms in excess of one year and expire on various dates through 2040.

On April 23, 2015, the company sold and leased back, under four separate lease agreements, four properties located in Ohio and one property in Florida for net proceeds of $23,000,000, which were used to reduce debt under the U.S. and Canadian Credit Facility. The initial total annual rent for the properties was $2,275,000 and can increase annually over the 20-year term of the leases based on the applicable geographical consumer price index (CPI). Each of the four lease agreements contains three 10-year renewals with the rent for each option term based on the greater of the then-current fair market rent for each property or the then- current rate and increasing annually by the applicable CPI. Under the terms of the lease agreements, the company is responsible for all taxes, insurance and utilities. The company is required to adequately maintain each of the properties and any leasehold improvements will be amortized over the lesser of the lives of the improvements or the remaining lease lives, consistent with any other company leases.

In connection with the transaction, the requirements for sale lease-back accounting were met. Accordingly, the company recorded the sale of the properties, removed the related property and equipment from the company's balance sheet, recognized an initial deferred gain of $7,414,000 and an immediate loss of $257,000 related to one property and recorded new lease liabilities. Specifically, the company
recorded four finance leases totaling $32,339,000 and one operating lease related to leased land, which was not a material component of the transaction. The gains on the sales of the properties were required to be deferred and recognized over the life of the leases as the property sold is being leased back. The deferred gain is classified under Other Long-Term Obligations on the condensed consolidated balance sheets.
Lease expenses for the three and nine months ended September 30, 2022 and September 30, 2021, respectively, were as follows (in thousands):
For the Three Months Ended September 30,For the Nine Months Ended September 30,
2022202120222021
Operating leases$1,391 $1,811 $4,421 $5,592 
Variable and short-term leases616 764 1,961 2,825 
Total operating leases$2,007 $2,575 $6,382 $8,417 
Finance lease interest cost$1,062 $1,146 $3,224 $3,487 
Finance lease depreciation1,055 1,265 3,210 3,807 
Total finance leases$2,117 $2,411 $6,434 $7,294 






















Future minimum operating and finance lease commitments, as of September 30, 2022, are as follows (in thousands):
Finance 
Leases		Operating Leases
2022$1,637 $1,100 
20236,501 3,192 
20246,443 2,452 
20256,353 1,973 
20266,248 1,209 
Thereafter65,253 1,615 
Total future minimum lease payments92,435 11,541 
Amounts representing interest(31,893)(1,614)
Present value of minimum lease payments60,542 9,927 
Less: current maturities of lease obligations(3,031)(3,062)
Long-term lease obligations$57,511 $6,865 
Supplemental cash flow amounts for the three and nine months ended September 30, 2022 and September 30, 2021 were as follows (in thousands):
For the Three Months Ended September 30,For the Nine Months Ended September 30,
Cash Activity: Cash paid in measurement of amounts for lease liabilities2022202120222021
Operating leases$1,967 $2,584 $6,266 $8,501 
Finance leases1,810 2,100 5,478 6,311 
Total$3,777 $4,684 $11,744 $14,812 
Non-Cash Activity: Right-of-use assets obtained in exchange for lease obligations2022202120222021
Operating leases$1,264 $989 $2,429 $5,418 
Finance leases54 189 969 6,345 
Total$1,318 $1,178 $3,398 $11,763 











Weighted-average remaining lease terms and discount rates for finance and operating leases are as follows as of September 30, 2022 and December 31, 2021, respectively:
September 30, 2022December 31, 2021
Weighted-average remaining lease term - finance leases14.9 years15.8 years
Weighted-average remaining lease term - operating leases4.8 years5.0 years
Weighted-average discount rate - finance leases6.37%6.43%
Weighted-average discount rate - operating leases8.07%7.10%