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Leases
 12 Months Ended
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,
20232022
(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,
202320222021
(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)202320222021
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 leases8,259 7,906 4,177 
Weighted average remaining lease term (in years)
Operating leases8 years8 years8 years
Finance leases5 years6 years6 years
Weighted average discount rate (percent)
Operating leases4.1 %4.0 %3.9 %
Finance leases4.6 %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)
202437,872 6,500 
202530,336 5,282 
202624,709 3,512 
202721,268 1,468 
202819,095 743 
Thereafter66,112 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 liabilities138,665 — 
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,
20232022
(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,
202320222021
(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)202320222021
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 leases8,259 7,906 4,177 
Weighted average remaining lease term (in years)
Operating leases8 years8 years8 years
Finance leases5 years6 years6 years
Weighted average discount rate (percent)
Operating leases4.1 %4.0 %3.9 %
Finance leases4.6 %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)
202437,872 6,500 
202530,336 5,282 
202624,709 3,512 
202721,268 1,468 
202819,095 743 
Thereafter66,112 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 liabilities138,665 — 
Debt due within one year— 6,144 
Long-term debt due after one year— 13,230 
Total $171,047 $19,374