| Lessee, Finance Leases |
14. Leases:
Operating lease costs of $10,318 and $9,825 are included in cost of goods sold and in selling, general and administrative expenses on the consolidated statement of income for the year ended December 31, 2022 and 2021, respectively. Finance lease and financing obligation costs of $3,400 and $1,656 are included in cost of goods sold and in selling, general, and administrative expenses on the consolidated statement of income for the years ended December 31, 2022 and 2021. Lease income is not material to the results of operations for the years ended December 31, 2022 and 2021.
The table below presents the operating leases, finance leases, and financing obligation right-of-use assets and liabilities recognized on the consolidated balance sheet as of December 31, 2022 and 2021:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Classification |
|
December 31,
2022 |
|
December 31,
2021 |
| Assets |
|
|
|
|
|
|
| Operating lease assets |
|
Right-of-use lease assets |
|
$ |
28,265 |
|
|
$ |
30,115 |
|
| Finance lease and financing obligation assets |
|
Property, plant and equipment, net |
|
21,506 |
|
|
29,737 |
|
| Total leased assets |
|
|
|
$ |
49,771 |
|
|
$ |
59,852 |
|
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
| Current: |
|
|
|
|
|
|
| Operating lease liabilities |
|
Operating lease liabilities—current |
|
$ |
8,155 |
|
|
$ |
8,306 |
|
| Finance lease and financing obligation liabilities |
|
Accrued liabilities |
|
2,855 |
|
|
3,181 |
|
|
|
|
|
|
|
|
| Noncurrent: |
|
|
|
|
|
|
| Operating lease liabilities |
|
Operating lease liabilities—noncurrent |
|
20,021 |
|
|
21,719 |
|
| Finance lease and financing obligation liabilities |
|
Other long-term liabilities |
|
7,633 |
|
|
11,667 |
|
| Total leased liabilities |
|
|
|
$ |
38,664 |
|
|
$ |
44,873 |
|
|
|
|
|
|
|
|
The Company’s weighted average remaining lease term and weighted average discount rate for operating and financing leases as of December 31, 2022 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2022 |
|
December 31,
2021 |
| Weighted average remaining lease term (in years): |
|
|
|
|
| Operating leases |
|
4.45 |
|
4.79 |
| Finance leases and financing obligation |
|
3.57 |
|
4.69 |
|
|
|
|
|
| Weighted average discount rate: |
|
|
|
|
| Operating leases |
|
5.24 |
% |
|
5.02 |
% |
| Finance leases and financing obligation |
|
2.86 |
% |
|
2.86 |
% |
|
|
|
|
|
Maturities of lease liabilities as of December 31, 2022 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year |
|
Operating
Leases |
|
Finance
Leases and Financing Obligation |
|
|
| 2023 |
|
$ |
9,339 |
|
|
$ |
3,063 |
|
|
|
| 2024 |
|
7,748 |
|
|
3,063 |
|
|
|
| 2025 |
|
5,797 |
|
|
3,036 |
|
|
|
| 2026 |
|
4,166 |
|
|
1,878 |
|
|
|
| 2027 |
|
2,770 |
|
|
— |
|
|
|
| Thereafter |
|
1,979 |
|
|
— |
|
|
|
| Total lease payments |
|
31,799 |
|
|
11,040 |
|
|
|
| Less: Interest |
|
(3,623) |
|
|
(552) |
|
|
|
Total lease liabilities (1)
|
|
$ |
28,176 |
|
|
$ |
10,488 |
|
|
|
|
|
|
|
|
|
|
(1) Refer to the above table regarding the Company’s right-of-use lease assets and lease liabilities for the presentation of the lease liabilities in the Company’s consolidated balance sheet as of December 31, 2022.
The following table presents other information related to the Company’s operating leases, finance leases and financing obligation and the impact on the Company’s consolidated statement of cash flows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended
December 31, |
|
|
2022 |
|
2021 |
| Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
| Payments on operating leases included in operating cash flows |
|
$ |
10,327 |
|
|
$ |
9,755 |
|
| Interest payments under finance leases and financing obligation included in operating cash flows |
|
339 |
|
|
189 |
|
| Principal payments under finance leases and financing obligation included in financing cash flows |
|
2,724 |
|
|
1,466 |
|
|
|
|
|
|
| Right-of-use assets obtained in exchange for new lease liabilities (non-cash): |
|
|
|
|
| Operating leases |
|
7,462 |
|
|
9,526 |
|
|
|
|
|
|
|
|
|
|
|
|
| Lessee, Operating Leases |
14. Leases:
Operating lease costs of $10,318 and $9,825 are included in cost of goods sold and in selling, general and administrative expenses on the consolidated statement of income for the year ended December 31, 2022 and 2021, respectively. Finance lease and financing obligation costs of $3,400 and $1,656 are included in cost of goods sold and in selling, general, and administrative expenses on the consolidated statement of income for the years ended December 31, 2022 and 2021. Lease income is not material to the results of operations for the years ended December 31, 2022 and 2021.
The table below presents the operating leases, finance leases, and financing obligation right-of-use assets and liabilities recognized on the consolidated balance sheet as of December 31, 2022 and 2021:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Classification |
|
December 31,
2022 |
|
December 31,
2021 |
| Assets |
|
|
|
|
|
|
| Operating lease assets |
|
Right-of-use lease assets |
|
$ |
28,265 |
|
|
$ |
30,115 |
|
| Finance lease and financing obligation assets |
|
Property, plant and equipment, net |
|
21,506 |
|
|
29,737 |
|
| Total leased assets |
|
|
|
$ |
49,771 |
|
|
$ |
59,852 |
|
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
| Current: |
|
|
|
|
|
|
| Operating lease liabilities |
|
Operating lease liabilities—current |
|
$ |
8,155 |
|
|
$ |
8,306 |
|
| Finance lease and financing obligation liabilities |
|
Accrued liabilities |
|
2,855 |
|
|
3,181 |
|
|
|
|
|
|
|
|
| Noncurrent: |
|
|
|
|
|
|
| Operating lease liabilities |
|
Operating lease liabilities—noncurrent |
|
20,021 |
|
|
21,719 |
|
| Finance lease and financing obligation liabilities |
|
Other long-term liabilities |
|
7,633 |
|
|
11,667 |
|
| Total leased liabilities |
|
|
|
$ |
38,664 |
|
|
$ |
44,873 |
|
|
|
|
|
|
|
|
The Company’s weighted average remaining lease term and weighted average discount rate for operating and financing leases as of December 31, 2022 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2022 |
|
December 31,
2021 |
| Weighted average remaining lease term (in years): |
|
|
|
|
| Operating leases |
|
4.45 |
|
4.79 |
| Finance leases and financing obligation |
|
3.57 |
|
4.69 |
|
|
|
|
|
| Weighted average discount rate: |
|
|
|
|
| Operating leases |
|
5.24 |
% |
|
5.02 |
% |
| Finance leases and financing obligation |
|
2.86 |
% |
|
2.86 |
% |
|
|
|
|
|
Maturities of lease liabilities as of December 31, 2022 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year |
|
Operating
Leases |
|
Finance
Leases and Financing Obligation |
|
|
| 2023 |
|
$ |
9,339 |
|
|
$ |
3,063 |
|
|
|
| 2024 |
|
7,748 |
|
|
3,063 |
|
|
|
| 2025 |
|
5,797 |
|
|
3,036 |
|
|
|
| 2026 |
|
4,166 |
|
|
1,878 |
|
|
|
| 2027 |
|
2,770 |
|
|
— |
|
|
|
| Thereafter |
|
1,979 |
|
|
— |
|
|
|
| Total lease payments |
|
31,799 |
|
|
11,040 |
|
|
|
| Less: Interest |
|
(3,623) |
|
|
(552) |
|
|
|
Total lease liabilities (1)
|
|
$ |
28,176 |
|
|
$ |
10,488 |
|
|
|
|
|
|
|
|
|
|
(1) Refer to the above table regarding the Company’s right-of-use lease assets and lease liabilities for the presentation of the lease liabilities in the Company’s consolidated balance sheet as of December 31, 2022.
The following table presents other information related to the Company’s operating leases, finance leases and financing obligation and the impact on the Company’s consolidated statement of cash flows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended
December 31, |
|
|
2022 |
|
2021 |
| Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
| Payments on operating leases included in operating cash flows |
|
$ |
10,327 |
|
|
$ |
9,755 |
|
| Interest payments under finance leases and financing obligation included in operating cash flows |
|
339 |
|
|
189 |
|
| Principal payments under finance leases and financing obligation included in financing cash flows |
|
2,724 |
|
|
1,466 |
|
|
|
|
|
|
| Right-of-use assets obtained in exchange for new lease liabilities (non-cash): |
|
|
|
|
| Operating leases |
|
7,462 |
|
|
9,526 |
|
|
|
|
|
|
|
|
|
|
|
|