Leases

3 Months Ended

Mar. 31, 2023

Note 8. Leases

Quantitative Lease Disclosures

We have operating and finance leases for our manufacturing facilities, warehouses, office space, automobiles, and certain equipment. Our leases have remaining lease terms of up to eleven years, some of which may include one or more five-year renewal options. We have not included any of the renewal options in our operating lease payments as we concluded that it is not reasonably certain that we will exercise any of these renewal options. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Operating lease expense is recognized on a straight-line basis over the lease term. Finance leases are not material.

The following tables provide quantitative disclosures related to our operating leases and includes all operating leases acquired from the date of acquisition (in thousands):


Balance Sheet Information	March 31, 2023				December 31, 2022
Assets
Operating lease right-of-use assets		$	74,291			$	49,838

Liabilities
Sundry payables and accrued expenses		$	10,806			$	10,763
Noncurrent operating lease liabilities			65,319				40,709
Total operating lease liabilities		$	76,125			$	51,472
Weighted Average Remaining Lease Term
Operating leases	8.5 Years				7 Years
Weighted Average Discount Rate
Operating leases			4.3	%			3.7	%

	Three Months Ended
Expense and Cash Flow Information	March 31,
Lease Expense			2023				2022
Operating lease expense (a)		$	3,109			$	2,830

Supplemental Cash Flow Information
Cash paid for the amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	2,834			$	2,760
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases (b)		$	29,092			$	3,866

(a)

Excludes expenses of approximately $0.7 million and $0.4 million for the three months ended March 31, 2023 and 2022, respectively, related to non-lease components such as maintenance, property taxes, etc., and operating lease expense for leases with an initial term of 12 months or less, which is not material.

(b)	Includes $27.8 million of right-of-use assets related to the lease modification and extension for our distribution center and office in Lewisville, Texas during the three months ended March 31, 2023.

Minimum Lease Payments

At March 31, 2023, we are obligated to make minimum lease payments through 2034, under operating leases, which are as follows (in thousands):

2023	$	8,158
2024		12,383
2025		10,627
2026		9,517
2027		8,740
Thereafter		44,780
Total lease payments	$	94,205
Less: Interest		(18,080	)
Present value of lease liabilities	$	76,125