XML 33 R17.htm IDEA: XBRL DOCUMENT

Note 10 - Leases

12 Months Ended

Dec. 31, 2022

Lessee, Operating Leases and Finance Leases [Text Block]

10.

Leases

The Company leases certain manufacturing facilities, distribution centers, office space, warehouses, automobiles, machinery and computer equipment globally under both finance and operating leases. The Company’s leases have remaining lease terms of up to 20 years, of which certain leases, primarily within the buildings and improvements asset class, include options to extend the leases for up to 10 additional years. Further, the Company leases certain buildings from a noncontrolling interest holder, which the Company has determined to be arm's length transactions.

The Company determines if an arrangement is or contains a lease at contract inception. The Company recognizes a right of use (“ROU”) asset and lease liability at the lease commencement date based on the present value of the lease payments over the lease term. As the Company’s leases generally do not provide an implicit rate, the incremental borrowing rate is used to determine the present value of lease payments. The incremental borrowing rate is a collateralized rate determined based on the lease term, the Company’s credit rating, and other market information available at the commencement date. The ROU asset also includes any lease payments made prior to the commencement date and is reduced by any lease incentives. The lease term may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term, while lease expense for finance leases is recognized as depreciation and interest expense using the effective interest method. The Company’s variable lease expense generally consists of property tax and insurance payments that are variable in nature, however, these amounts are immaterial to the consolidated financial statements and are therefore not separately reported.

The Company has lease agreements with both lease and nonlease components, which it elected to account for as a single lease component. However, the Company did not elect to apply the recognition exception for short-term leases. The Company is applying these elections to all asset classes.

The Company is a lessor of certain of its C&I mobile products as part of a rental fleet, as well as two of its buildings that it leases to third parties. The lease income related to these arrangements is not material to the consolidated financial statements.

The Company records its operating lease cost and amortization of finance lease ROU assets within cost of goods sold or operating expenses in the consolidated statements of comprehensive income depending on the cost center of the underlying asset. The Company records its finance lease interest cost within interest expense in the consolidated statements of comprehensive income.

The components of total lease cost consist of the following:

	Year Ended December 31, 2022		Year Ended December 31, 2021		Year Ended December 31, 2020

Operating lease cost	$	36,292	$	22,432	$	18,648
Finance lease cost:
Amortization of ROU assets		3,298		3,187		2,587
Interest on lease liabilities		1,945		2,021		2,237
Total lease cost	$	41,535	$	27,640	$	23,472

Supplemental balance sheet information related to the Company’s leases is as follows:

	December 31, 2022			December 31, 2021
Operating Leases
Operating lease ROU assets (1)	$	100,083		$	101,266

Operating lease liabilities - current (2)	$	30,330		$	23,549
Operating lease liabilities - noncurrent (3)		73,547			80,370
Total operating lease liabilities	$	103,877		$	103,919

Finance Leases
Finance lease ROU assets, gross	$	35,470		$	47,119
Accumulated depreciation - finance lease ROU assets		(10,751	)		(10,343	)
Finance lease ROU assets, net (4)	$	24,719		$	36,776

Finance lease liabilities - current (5)	$	2,650		$	4,209
Finance lease liabilities - noncurrent (6)		24,770			34,966
Total finance lease liabilities	$	27,420		$	39,175

(1)

Recorded in the operating lease and other assets line within the consolidated balance sheets

(2)

Recorded in the other accrued liabilities line within the consolidated balance sheets

(3)

Recorded in the operating lease and other long-term liabilities line within the consolidated balance sheets

(4)

Recorded in the property and equipment, net line within the consolidated balance sheets

(5)

Recorded in the current portion of long-term borrowings and finance lease obligations line within the consolidated balance sheets

(6)

Recorded in the long-term borrowings and finance lease obligations line within the consolidated balance sheets

Supplemental cash flow information related to the Company’s leases is as follows:

	Year Ended December 31, 2022		Year Ended December 31, 2021		Year Ended December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	36,020	$	21,250	$	18,412
Operating cash flows from finance leases		1,919		1,972		1,871
Financing cash flows from finance leases		4,931		4,679		3,957

ROU assets obtained in exchange for lease liabilities
Operating leases		28,766		55,057		41,678
Finance leases		2,874		4,026		3,737

Weighted average remaining lease term and discount rate information related to the Company’s leases as of December 31, 2022 and 2021 is as follows:

	December 31, 2022			December 31, 2021
Weighted average remaining lease term (in years)
Operating Leases		4.65			5.21
Finance Leases		11.26			11.94

Weighted average discount rate
Operating Leases		4.82	%		3.58	%
Finance Leases		7.58	%		7.43	%

The maturities of the Company’s lease liabilities as of December 31, 2022 are as follows:

	*Finance Leases*			*Operating Leases*
2023	$	4,487		$	34,208
2024		4,223			30,834
2025		3,639			20,386
2026		3,137			9,855
2027		2,929			8,334
After 2027		24,405			14,743
Total minimum lease payments		42,820			118,360
Interest component		(15,400	)		(14,483	)
Present value of minimum lease payments	$	27,420		$	103,877