Leases

6 Months Ended

Jun. 30, 2023

LEASES

Lease cost is recognized in both the Cost of Sales and Operating Expenses sections of the Condensed Consolidated Statements of Income.


(In thousands)	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Lease Cost
Operating lease cost	$	4,458	$	3,943	$	8,807	$	8,051
Short-term lease cost		2,739		1,362		5,518		2,700
Variable lease cost		603		223		1,160		425
Total lease cost	$	7,800	$	5,528	$	15,485	$	11,176
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	$	4,497	$	3,930	$	8,829	$	8,005
Right-of-use assets obtained in exchange for new operating lease liabilities		875		743		7,420		3,562

The following table outlines the maturities of lease liabilities as of June 30, 2023.


(In thousands)
Undiscounted Cash Flows:
2023 (excluding the six months ended June 30, 2023)	$	8,477
2024		13,079
2025		9,077
2026		6,773
2027		6,266
Subsequent to 2027		38,348
Total Undiscounted Cash Flows	$	82,020
Less: Imputed interest		(12,719	)
Present value	$	69,301
Current operating lease liabilities (1)		13,378
Non-current operating lease liabilities		55,923
Total lease liabilities	$	69,301

(1)

This item is included in the Accrued liabilities line on the Company’s Condensed Consolidated Balance Sheet.


Weighted-average remaining lease term-operating leases	9 Years
Weighted-average discount rate-operating leases		3.5	%

As of June 30, 2023, the Company had equipment and railcars leases, valued at approximately $6,127,000, that had not commenced. These leases will commence during the third and the fourth quarters of 2023 with lease terms ranging 1 year to 7 years.