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Note 10 - Leases | 12 Months Ended
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Dec. 31, 2023
Notes to Financial Statements |
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 18 years, of which certain leases, primarily within the buildings and improvements asset class, include options to extend for up to 10 additional years. Further, the Company leases certain buildings from a related party, 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 interest 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 non-lease 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, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Operating lease cost |  | $ | 38,980 |  |  | $ | 36,292 |  |  | $ | 22,432 |
Finance lease cost: |  |  |  |  |  |  |  |  |  |  |  |
Amortization of ROU assets |  |  | 4,142 |  |  |  | 3,298 |  |  |  | 3,187 |
Interest on lease liabilities |  |  | 2,540 |  |  |  | 1,945 |  |  |  | 2,021 |
Total lease cost |  | $ | 45,662 |  |  | $ | 41,535 |  |  | $ | 27,640 |
Supplemental balance sheet information related to the Company’s leases is as follows:
|  | December 31, |
|  | 2023 |  |  | 2022 |
Operating Leases |  |  |  |  |  |  |  |
Operating lease ROU assets (1) |  | $ | 70,937 |  |  | $ | 100,083 |
Operating lease liabilities - current (2) |  | $ | 29,388 |  |  | $ | 30,330 |
Operating lease liabilities - noncurrent (3) |  |  | 44,760 |  |  |  | 73,547 |
Total operating lease liabilities |  | $ | 74,148 |  |  | $ | 103,877 |
Finance Leases |  |  |  |  |  |  |  |
Finance lease ROU assets, gross |  | $ | 82,744 |  |  | $ | 35,470 |
Accumulated depreciation - finance lease ROU assets |  |  | (14,665 | ) |  |  | (10,751 | )
Finance lease ROU assets, net (4) |  | $ | 68,079 |  |  | $ | 24,719 |
Finance lease liabilities - current (5) |  | $ | 3,785 |  |  | $ | 2,650 |
Finance lease liabilities - noncurrent (6) |  |  | 67,523 |  |  |  | 24,770 |
Total finance lease liabilities |  | $ | 71,308 |  |  | $ | 27,420 |
| (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, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |  |  |  |  |  |  |
Operating cash flows - operating leases |  | $ | 39,073 |  |  | $ | 36,020 |  |  | $ | 21,250 |
Operating cash flows - finance leases |  |  | 2,409 |  |  |  | 1,919 |  |  |  | 1,972 |
Financing cash flows - finance leases |  |  | 3,618 |  |  |  | 4,931 |  |  |  | 4,679 |
ROU assets obtained in exchange for lease liabilities |  |  |  |  |  |  |  |  |  |  |  |
Operating leases |  |  | 17,830 |  |  |  | 28,766 |  |  |  | 55,057 |
Finance leases |  |  | 47,715 |  |  |  | 2,874 |  |  |  | 4,026 |
Weighted average remaining lease term and discount rate information related to the Company’s leases as of December 31, 2023 and 2022 is as follows:
|  | December 31, |
|  | 2023 |  |  | 2022 |
Weighted average remaining lease term (in years) |  |  |  |  |  |  |  |
Operating Leases |  |  | 4.55 |  |  |  | 4.65 |
Finance Leases |  |  | 5.34 |  |  |  | 11.26 |
Weighted average discount rate |  |  |  |  |  |  |  |
Operating Leases |  |  | 4.63 | % |  |  | 4.82 | %
Finance Leases |  |  | 6.64 | % |  |  | 7.58 | %
The maturities of the Company’s lease liabilities as of December 31, 2023 are as follows:
|  | Finance Leases |  |  | Operating Leases |
2024 |  | $ | 8,043 |  |  | $ | 32,145 |
2025 (1) |  |  | 48,297 |  |  |  | 18,887 |
2026 |  |  | 4,243 |  |  |  | 8,278 |
2027 |  |  | 3,896 |  |  |  | 7,667 |
2028 |  |  | 3,472 |  |  |  | 6,157 |
After 2028 |  |  | 22,616 |  |  |  | 12,014 |
Total minimum lease payments |  |  | 90,567 |  |  |  | 85,148 |
Interest component |  |  | (19,259 | ) |  |  | (11,000 | )
Present value of minimum lease payments |  | $ | 71,308 |  |  | $ | 74,148 |
(1) | Includes a payment for a purchase option reasonably certain to be exercised in 2025.

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