LEASES

6 Months Ended

Jun. 30, 2021

The Company has operating leases for corporate offices, distribution facilities, manufacturing plants, and certain vehicles.

The components of lease expense for the three and six months ended June 30, 2021 and 2020 were as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Operating lease expenses(1):
Fixed lease expense	$	4,501	$	4,491	$	8,996	$	9,305
Variable lease expense	949		925		1,927		1,920
Total	$	5,450	$	5,416	$	10,923	$	11,225

(1) Expenses are recorded within distribution expenses and selling, general and administrative expenses on the unaudited condensed consolidated statement of operations.

Supplemental cash flow information for lease related liabilities and assets for the six months ended June 30, 2021 and 2020 were as follows (in thousands):


	Six Months Ended June 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	9,764	$	7,285


	Six Months Ended June 30,
	2021		2020
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	1,248	$	12

During the three and six months ended June 30, 2020, in response to the COVID-19 pandemic, the Company negotiated COVID-19 related rent concessions for several of its leased properties. The majority of these rent concessions were in the form of deferred rent payments for one or more months. The Company applied the guidance issued in the FASB Staff Q&A - Topic 842 and Topic 840: Accounting For Lease Concessions Related to the Effects of the COVID-19 Pandemic, and elected to account for these rent concessions as if no changes to the lease were made and continued to recognize the straight-line lease expense. The COVID-19 related deferred rent payments as of June 30, 2020, totaled $1.0 million and were deferred to the second half of fiscal year 2020 and into fiscal year 2021. As of June 30, 2021, all deferred payments have been paid.

The aggregate future lease payments for operating leases as of June 30, 2021 were as follows (in thousands):


	Operating
2021 (excluding the six months ended June 30, 2021)	$	9,350
2022	18,564
2023	18,580
2024	18,177
2025	18,087
2026	17,515
Thereafter	39,000
Total lease payments	139,273
Less: Interest	(29,329)
Present value of lease payments	$	109,944

Average lease terms and discount rates were as follows:


	June 30, 2021
Operating leases:
Weighted-average remaining lease term (years)	7.8
Weighted-average discount rate	6.2	%