Leases

6 Months Ended

Jun. 30, 2023

The Company has operating and finance leases for office and warehouse facilities, headquarters, call centers, machinery and certain computer and communications equipment which provide the right to use the underlying assets in exchange for agreed upon lease payments, determined by the payment schedule contained in each lease. The Company’s lease portfolio consists primarily of operating leases which expire at various dates through 2032. In the second quarter of 2023, the Company recorded a right-of-use ("ROU") asset and related lease liability of approximately $5.1 million related to an extension of an existing warehouse facility in the U.S. consisting of approximately 317,000 square feet. The lease extension is for a three year term unless terminated earlier as provided in the lease.

In addition, as part of the Indoff acquisition, ROU assets and related lease liabilities of $0.8 million were recorded. These operating leases include two administrative office locations and one distribution center which expire at various dates through 2027. These properties aggregate to approximately 31,800 square feet of space.

The Company's operating lease costs, included in continuing operations, was $4.2 million and $3.6 million for the three months ended June 30, 2023 and 2022, respectively, and $8.4 million and $6.9 million for the six months ended June 30, 2023 and 2022, respectively.

Information relating to operating leases for continuing and discontinued operations updated for the lease extension and Indoff acquisition as of June 30, 2023 and December 31, 2022 :


	Six Months Ended June 30,			Year Ended December 31,
	2023			2022
Weighted Average Remaining Lease Term
Operating leases	7.6 years			8.2 years

Weighted Average Discount Rate
Operating leases	5.4		%	5.4		%

ROU assets obtained in exchange for operating lease obligations (in millions)	$	5.9		$	34.5

Maturities of lease liabilities were as follows (in millions):


Year Ending December 31	Operating Leases
2023 (adjusted for six months of payments)	$	9.5
2024	19.0
2025	17.8
2026	15.6
2027	11.8
2028	12.0
Thereafter	41.0
Total lease payments	126.7
Less: interest	(24.8)
Total present value of lease liabilities	$	101.9