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Leases | 12 Months Ended
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Dec. 31, 2023
Leases [Abstract] |
Leases | LEASES We had $4.0 million and $2.0 million of legally binding minimum lease payments for operating leases signed but not yet commenced as of December 31, 2023 and 2022. We did not have material subleases, leases that imposed significant restrictions or covenants, material related party leases or sale-leaseback arrangements. In conjunction with our close process for the third quarter of 2022, the Company identified an accounting error related to certain operating real estate leases that have escalating rent payments which were not correctly recorded on a straight-line basis in the amount of $6.4 million. Approximately $5.8 million of the error impacted the Company’s consolidated statements of income prior to adoption of ASU No. 2016-02, Leases (Topic 842) in 2019 and the remaining immaterial amount impacted each period subsequent to adoption. To correct the cumulative impact of the error the Company recorded an adjustment of $6.4 million of incremental operating lease expense in the third quarter of 2022 ($5.5 million classified as SG&A and $0.9 million classified as COS), with the offsetting adjustment to reduce operating lease right-of-use assets, net on our condensed consolidated balance sheet for the period ended September 30, 2022. There was no impact to our statements of cash flows as a result of the correction of the error. Other information related to our leases is as follows:
| December 31,
| 2023 |  | 2022
| (Amounts in thousands)
Finance Leases: |  |  |
ROU assets recorded under finance leases | $ | 35,523 |  |  | $ | 33,427 |
Accumulated depreciation associated with finance leases | (16,828) |  |  | (15,851) |
Total finance leases ROU assets, net(1) | $ | 18,695 |  |  | $ | 17,576 |
Total finance leases liabilities(2) | $ | 19,374 |  |  | $ | 17,939 |
The costs components of operating and finance leases are as follows:
| December 31,
| 2023 |  | 2022 |  | 2021
| (Amounts in thousands)
Operating Lease Costs: |  |  |  |  |
Fixed lease expense(3) | $ | 55,588 |  |  | $ | 59,782 |  |  | $ | 57,482 |
Variable lease expense(3) | 8,131 |  |  | 7,412 |  |  | 9,331 |
Total operating lease expense | $ | 63,719 |  |  | $ | 67,194 |  |  | $ | 66,813 |
Finance Lease Costs: |  |  |  |  |
Depreciation of finance lease ROU assets(3) | $ | 6,655 |  |  | $ | 5,984 |  |  | $ | 5,374 |
Interest on lease liabilities(4) | 885 |  |  | 604 |  |  | 617 |
Total finance lease expense | $ | 7,540 |  |  | $ | 6,588 |  |  | $ | 5,991 |
_____________________ (1) Included in property, plant and equipment, net (2) Included in debt due within one year and long-term debt due after one year, accordingly (3) Included in cost of sales and selling, general and administrative expense, accordingly (4) Included in interest expense Supplemental cash flows information related to our leases is as follows:
| December 31,
(Amounts in thousands, except lease term and discount rate) | 2023 |  | 2022 |  | 2021
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases(1) | $ | 62,303 |  |  | $ | 57,712 |  |  | $ | 61,240 |
Financing cash flows from finance leases(2) | 8,234 |  |  | 6,039 |  |  | 5,285 |
ROU assets obtained in exchange for lease obligations: |  |  |  |  |
Operating leases | $ | 18,570 |  |  | $ | 26,581 |  |  | $ | 35,542 |
Finance leases | 8,259 |  |  | 7,906 |  |  | 4,177 |
Weighted average remaining lease term (in years) |  |  |  |  |
Operating leases | 8 years |  | 8 years |  | 8 years
Finance leases | 5 years |  | 6 years |  | 6 years
Weighted average discount rate (percent) |  |  |  |  |
Operating leases | 4.1 | % |  | 4.0 | % |  | 3.9 | %
Finance leases | 4.6 | % |  | 3.9 | % |  | 3.4 | %
_____________________ (1) Included in our consolidated statement of cash flows, operating activities, prepaid expenses and other assets, net and retirement obligations and other (2) Included in our consolidated statement of cash flows, financing activities, payments under other financing arrangements Future undiscounted lease payments under operating and finance leases as of December 31, 2023, were as follows:
Year ending December 31, | Operating Leases |  | Finance Leases
| (Amounts in thousands)
2024 | 37,872 |  |  | 6,500 |
2025 | 30,336 |  |  | 5,282 |
2026 | 24,709 |  |  | 3,512 |
2027 | 21,268 |  |  | 1,468 |
2028 | 19,095 |  |  | 743 |
Thereafter | 66,112 |  |  | 4,261 |
Total future minimum lease payments | $ | 199,392 |  |  | $ | 21,766 |
Less: Imputed interest | (28,345) |  |  | (2,392) |
Total | $ | 171,047 |  |  | $ | 19,374 |
Other current liabilities | $ | 32,382 |  |  | $ | — |
Operating lease liabilities | 138,665 |  |  | — |
Debt due within one year | — |  |  | 6,144 |
Long-term debt due after one year | — |  |  | 13,230 |
Total | $ | 171,047 |  |  | $ | 19,374 |
Leases | LEASES We had $4.0 million and $2.0 million of legally binding minimum lease payments for operating leases signed but not yet commenced as of December 31, 2023 and 2022. We did not have material subleases, leases that imposed significant restrictions or covenants, material related party leases or sale-leaseback arrangements. In conjunction with our close process for the third quarter of 2022, the Company identified an accounting error related to certain operating real estate leases that have escalating rent payments which were not correctly recorded on a straight-line basis in the amount of $6.4 million. Approximately $5.8 million of the error impacted the Company’s consolidated statements of income prior to adoption of ASU No. 2016-02, Leases (Topic 842) in 2019 and the remaining immaterial amount impacted each period subsequent to adoption. To correct the cumulative impact of the error the Company recorded an adjustment of $6.4 million of incremental operating lease expense in the third quarter of 2022 ($5.5 million classified as SG&A and $0.9 million classified as COS), with the offsetting adjustment to reduce operating lease right-of-use assets, net on our condensed consolidated balance sheet for the period ended September 30, 2022. There was no impact to our statements of cash flows as a result of the correction of the error. Other information related to our leases is as follows:
| December 31,
| 2023 |  | 2022
| (Amounts in thousands)
Finance Leases: |  |  |
ROU assets recorded under finance leases | $ | 35,523 |  |  | $ | 33,427 |
Accumulated depreciation associated with finance leases | (16,828) |  |  | (15,851) |
Total finance leases ROU assets, net(1) | $ | 18,695 |  |  | $ | 17,576 |
Total finance leases liabilities(2) | $ | 19,374 |  |  | $ | 17,939 |
The costs components of operating and finance leases are as follows:
| December 31,
| 2023 |  | 2022 |  | 2021
| (Amounts in thousands)
Operating Lease Costs: |  |  |  |  |
Fixed lease expense(3) | $ | 55,588 |  |  | $ | 59,782 |  |  | $ | 57,482 |
Variable lease expense(3) | 8,131 |  |  | 7,412 |  |  | 9,331 |
Total operating lease expense | $ | 63,719 |  |  | $ | 67,194 |  |  | $ | 66,813 |
Finance Lease Costs: |  |  |  |  |
Depreciation of finance lease ROU assets(3) | $ | 6,655 |  |  | $ | 5,984 |  |  | $ | 5,374 |
Interest on lease liabilities(4) | 885 |  |  | 604 |  |  | 617 |
Total finance lease expense | $ | 7,540 |  |  | $ | 6,588 |  |  | $ | 5,991 |
_____________________ (1) Included in property, plant and equipment, net (2) Included in debt due within one year and long-term debt due after one year, accordingly (3) Included in cost of sales and selling, general and administrative expense, accordingly (4) Included in interest expense Supplemental cash flows information related to our leases is as follows:
| December 31,
(Amounts in thousands, except lease term and discount rate) | 2023 |  | 2022 |  | 2021
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases(1) | $ | 62,303 |  |  | $ | 57,712 |  |  | $ | 61,240 |
Financing cash flows from finance leases(2) | 8,234 |  |  | 6,039 |  |  | 5,285 |
ROU assets obtained in exchange for lease obligations: |  |  |  |  |
Operating leases | $ | 18,570 |  |  | $ | 26,581 |  |  | $ | 35,542 |
Finance leases | 8,259 |  |  | 7,906 |  |  | 4,177 |
Weighted average remaining lease term (in years) |  |  |  |  |
Operating leases | 8 years |  | 8 years |  | 8 years
Finance leases | 5 years |  | 6 years |  | 6 years
Weighted average discount rate (percent) |  |  |  |  |
Operating leases | 4.1 | % |  | 4.0 | % |  | 3.9 | %
Finance leases | 4.6 | % |  | 3.9 | % |  | 3.4 | %
_____________________ (1) Included in our consolidated statement of cash flows, operating activities, prepaid expenses and other assets, net and retirement obligations and other (2) Included in our consolidated statement of cash flows, financing activities, payments under other financing arrangements Future undiscounted lease payments under operating and finance leases as of December 31, 2023, were as follows:
Year ending December 31, | Operating Leases |  | Finance Leases
| (Amounts in thousands)
2024 | 37,872 |  |  | 6,500 |
2025 | 30,336 |  |  | 5,282 |
2026 | 24,709 |  |  | 3,512 |
2027 | 21,268 |  |  | 1,468 |
2028 | 19,095 |  |  | 743 |
Thereafter | 66,112 |  |  | 4,261 |
Total future minimum lease payments | $ | 199,392 |  |  | $ | 21,766 |
Less: Imputed interest | (28,345) |  |  | (2,392) |
Total | $ | 171,047 |  |  | $ | 19,374 |
Other current liabilities | $ | 32,382 |  |  | $ | — |
Operating lease liabilities | 138,665 |  |  | — |
Debt due within one year | — |  |  | 6,144 |
Long-term debt due after one year | — |  |  | 13,230 |
Total | $ | 171,047 |  |  | $ | 19,374 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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