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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Operating Lease Liabilities and Assets

The Company owns most of the assets used in its operations, but leases certain buildings and land, vehicles, office equipment and other rental assets. The Company determines if an arrangement is a lease at inception. All of the Company’s current lease arrangements are classified as operating leases. The Company historically has not entered into financing leases. Operating lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease expense is recognized by amortizing the amount recorded as an asset on a straight-line basis over the lease term.

In determining lease asset value, the Company considers fixed or variable payment terms, prepayments, incentives, and options to extend, terminate or purchase. Renewal, termination or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. The Company generally uses its incremental borrowing rate based on information available at the lease commencement date in determining the present value of lease payments.

As of December 31, 2021, the weighted average remaining lease term was 5 years and the weighted average discount rate used to determine the operating lease liability was 2.2 percent. For the twelve months ended December 31, 2021, expense related to operating leases was $11.6 million, operating lease payments included in operating cash flows totaled $11.6 million, and non-cash additions to operating lease assets totaled $1.6 million. Variable lease costs and short term lease costs were not significant for the twelve months ended December 31, 2021.

As of December 31, 2021, future maturities of operating lease liabilities were as follows (in thousands):
2022$9,096 
20237,753 
20245,553 
20253,874 
20263,230 
Thereafter4,948 
Total lease payments$34,454 
Present value adjustment(1,831)
Operating lease liabilities$32,623 

Other Commitments. The Company is committed to pay suppliers under the terms of open purchase orders issued in the normal course of business totaling approximately $237 million at December 31, 2021. The Company also has commitments with certain suppliers to purchase minimum quantities, and under the terms of certain agreements, the Company is committed for certain portions of the supplier’s inventory. The Company does not purchase, or commit to purchase, quantities in excess of normal usage or amounts that cannot be used within one year. The Company estimates that the maximum commitment amount under such agreements does not exceed $74 million.

The Company enters into contracts with vendors to receive services. Commitments under these service contracts with non-cancelable terms of more than one year totaled $8 million in 2022, $5 million in 2023, $4 million in 2024 and $5 million thereafter.

In addition, the Company could be obligated to perform under standby letters of credit totaling $3 million at December 31, 2021. The Company has also guaranteed the debt of its subsidiaries for up to $9 million. All debt of subsidiaries is reflected in the consolidated balance sheets.

Contingencies. The Company is party to various legal proceedings arising in the normal course of business. The Company is actively pursuing and defending these matters and has recorded an estimate of the probable costs where appropriate. Management does not expect that resolution of these matters will have a material adverse effect on the Company, although the ultimate outcome cannot be determined based on available information.
Lessee, Operating Leases
Operating Lease Liabilities and Assets

The Company owns most of the assets used in its operations, but leases certain buildings and land, vehicles, office equipment and other rental assets. The Company determines if an arrangement is a lease at inception. All of the Company’s current lease arrangements are classified as operating leases. The Company historically has not entered into financing leases. Operating lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease expense is recognized by amortizing the amount recorded as an asset on a straight-line basis over the lease term.

In determining lease asset value, the Company considers fixed or variable payment terms, prepayments, incentives, and options to extend, terminate or purchase. Renewal, termination or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. The Company generally uses its incremental borrowing rate based on information available at the lease commencement date in determining the present value of lease payments.
As of December 31, 2021, the weighted average remaining lease term was 5 years and the weighted average discount rate used to determine the operating lease liability was 2.2 percent. For the twelve months ended December 31, 2021, expense related to operating leases was $11.6 million, operating lease payments included in operating cash flows totaled $11.6 million, and non-cash additions to operating lease assets totaled $1.6 million. Variable lease costs and short term lease costs were not significant for the twelve months ended December 31, 2021.