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Leases

12 Months Ended

Dec. 31, 2021

Effective January 1, 2019 the Company adopted ASC 842, which requires recognition of right of use (“ROU”) assets and lease liabilities on the balance sheet, based on the present value of the future minimum rental payments for existing operating leases. The Company adopted the provisions of ASC 842 on January 1, 2019 using a modified retrospective approach through a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption in line with the new transition method allowed under ASU 2018-11.

Certain of the Company’s leases include rental payments that will adjust periodically for inflation or certain adjustments based on step increases. An insignificant number of the Company’s leases contain residual value guarantees and none of the Company’s agreements contain material restrictive covenants. Variable rent expenses consist primarily of maintenance, property taxes and charges based on usage.

The Company rents or subleases certain real estate to third parties. The Company’s sublease portfolio consists mainly of operating leases.

The components of lease costs for the twelve months ended December 31, 2021, 2020 and 2019, respectively, are as follows:


December 31, 2021	Cost of Goods Sold		Selling, General and Administrative	Total
Operating lease costs
Fixed	$	20,130	104,651	124,781
Short-term	13,415		18,434	31,849
Variable	7,949		30,127	38,076
Sub-leases	(529)		(1,113)	(1,642)
	$	40,965	152,099	193,064

	Depreciation and Amortization		Interest	Total
Finance lease costs
Amortization of leased assets	$	9,193	—	9,193
Interest on lease liabilities	—		772	772
	$	9,193	772	9,965
Net lease costs				$	203,029


December 31, 2020	Cost of Goods Sold		Selling, General and Administrative	Total
Operating lease costs
Fixed	$	25,067	102,504	127,571
Short-term	11,633		16,021	27,654
Variable	8,285		30,036	38,321
Sub-leases	(411)		(741)	(1,152)
	$	44,574	147,820	192,394

	Depreciation and Amortization		Interest	Total
Finance lease costs
Amortization of leased assets	$	6,423	—	6,423
Interest on lease liabilities	—		690	690
	$	6,423	690	7,113
Net lease costs				$	199,507


December 31, 2019	Cost of Goods Sold		Selling, General and Administrative	Total
Operating lease costs
Fixed	$	30,002	97,988	127,990
Short-term	9,725		13,933	23,658
Variable	8,123		29,852	37,975
Sub-leases	(311)		(537)	(848)
	$	47,539	141,236	188,775

	Depreciation and Amortization		Interest	Total
Finance lease costs
Amortization of leased assets	$	4,015	—	4,015
Interest on lease liabilities	—		491	491
	$	4,015	491	4,506
Net lease costs				$	193,281

Supplemental balance sheet information related to leases is as follows:


	Classification	At December 31, 2021		At December 31, 2020
Assets
Operating Leases
Right of use operating lease assets	Right of use operating lease assets	$	389,967	323,138
Finance Leases
Property, plant and equipment, gross	Property, plant and equipment	67,984		58,170
Accumulated depreciation	Accumulated depreciation	(19,902)		(12,498)
Property, plant and equipment, net	Property, plant and equipment, net	48,082		45,672
Total lease assets		$	438,049	368,810

Liabilities
Operating Leases
Other current	Current operating lease liabilities	$	104,434	98,042
Non-current	Non-current operating lease liabilities	297,390		234,726
Total operating liabilities		401,824		332,768
Finance Leases
Short-term debt	Short-term debt and current portion of long-term debt	9,560		8,025
Long-term debt	Long-term debt, less current portion	38,390		38,098
Total finance liabilities		47,950		46,123
Total lease liabilities		$	449,774	378,891

Maturities of lease liabilities as of December 31, 2021 are as follows:


Year ending December 31,	Finance Leases		Operating Leases	Total
2022	$	10,223	120,754	130,977
2023	9,393		98,769	108,162
2024	7,696		73,884	81,580
2025	6,210		56,853	63,063
2026	4,624		40,452	45,076
Thereafter	13,112		36,489	49,601
Total lease payments	51,258		427,201	478,459
Less imputed interest	3,308		25,377
Present value, Total	$	47,950	401,824

The Company had approximately $10,969 of leases that commenced after December 31, 2021 that created rights and obligations to the Company. These leases are not included in the above maturity schedule.

Lease term and discount rate are as follows:


	At December 31, 2021		At December 31, 2020
Weighted Average Remaining Lease Term
Operating Leases	4.7 years		4.5 years
Finance Leases	7.2 years		7.7 years

Weighted Average Discount Rate
Operating Leases	2.4	%	2.8	%
Finance Leases	1.3	%	1.4	%

Supplemental cash flow information related to leases was as follows:


	Twelve Months Ended
	December 31, 2021		December 31, 2020	December 31, 2019
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	122,886	124,708	127,213
Operating cash flows from finance leases	772		690	349
Financing cash flows from finance leases	9,289		6,386	3,975
Right of use assets obtained in exchange for lease obligations:
Operating leases	186,605		110,036	133,959
Finance leases	13,395		18,248	20,464
Amortization:
Amortization of right of use operating lease assets(1)	115,650		113,898	109,884

(1) Amortization of Right of use operating lease assets during the period is reflected in Other assets and prepaid expenses on the Consolidated Statements of Cash Flows.

Leases