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Leases | 12 Months Ended
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Dec. 31, 2022
Leases [Abstract] |
Leases | Leases We have operating and finance leases for properties, including manufacturing facilities, warehouses, and office space; as well as vehicles and certain equipment. We make certain judgments in determining whether a contract contains a lease in accordance with ASU 2016-02. Our leases have remaining lease terms of less than 1 year to 15 years, some of which include options to extend the lease for a period of up to 15 years and some include options to terminate the leases within 1 year. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably certain as of the commencement date of the lease. Our lease agreements do not contain material residual value guarantees, and our variable lease payments were $2.9 million and $2.4 million during the years ended December 31, 2022 and 2021, respectively. We have entered into various short-term operating leases with an initial term of twelve months or less. These leases are not recorded on our balance sheet as of December 31, 2022 or 2021, and the rent expense for short-term leases was not material. We have certain property and equipment lease contracts that may contain lease and non-lease components, and we have elected to utilize the practical expedient to account for these components together as a single combined lease component. As the rate implicit in most of our leases is not readily determinable, we use the incremental borrowing rate to determine the present value of the lease payments, which is unique to each leased asset and is based upon the term, commencement date, location, and local currency of the leased asset as well as the credit rating of the legal entity leasing the asset. The components of lease expense were as follows:
| Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (In thousands)
Operating lease cost | $ | 21,420 |  |  | $ | 18,607 |  |  | $ | 17,009 |
Finance lease cost |  |  |  |  |
Amortization of right-of-use asset | $ | 878 |  |  | $ | 528 |  |  | $ | 124 |
Interest on lease liabilities | 258 |  | 14 |  |  | 16 |
Total finance lease cost | $ | 1,136 |  |  | $ | 542 |  |  | $ | 140 |
Supplemental cash flow information related to leases was as follows:
| Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (In thousands)
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases | $ | 18,338 |  | $ | 15,737 |  |  | $ | 13,629 |
Operating and financing cash flows from finance leases were not material for the years ended December 31, 2022, 2021 and 2020. Supplemental balance sheet information related to leases was as follows:
| December 31,
| 2022 |  | 2021
| (In thousands, except lease term and discount rate)
Operating leases: |  |  |
Total operating lease right-of-use assets | $ | 73,376 |  |  | $ | 75,571 |
Accrued liabilities | $ | 16,442 |  |  | $ | 16,377 |
Long-term operating lease liabilities | 59,250 |  |  | 61,967 |
Total operating lease liabilities | $ | 75,692 |  |  | $ | 78,344 |
Finance leases: |  |  |
Other long-lived assets, at cost | $ | 6,323 |  |  | $ | 3,650 |
Accumulated depreciation | (733) |  |  | (557) |
Other long-lived assets, net | $ | 5,590 |  |  | $ | 3,093 |
Accrued liabilities | $ | 391 |  |  | $ | 140 |
Other long-term liabilities | 5,928 |  |  | 323 |
Total finance lease liabilities | $ | 6,319 |  |  | $ | 463 |
Weighted Average Remaining Lease Term |  |  |
Operating leases | 6 years |  | 6 years
Finance leases | 10 years |  | 4 years
Weighted Average Discount Rate |  |  |
Operating leases | 5.2% |  | 4.8 | %
Finance leases | 4.2% |  | 4.3 | %
The following table summarizes maturities of lease liabilities as of December 31, 2022 (in thousands):
2023 |  | $ | 15,815 |
2024 |  | 14,809 |
2025 |  | 13,472 |
2026 |  | 11,964 |
2027 |  | 6,464 |
Thereafter |  | 20,907 |
Total |  | $ | 83,431 |
The following table summarizes maturities of lease liabilities as of December 31, 2021 (in thousands):
2022 |  | $ | 17,630 |
2023 |  | 15,129 |
2024 |  | 12,342 |
2025 |  | 11,040 |
2026 |  | 9,725 |
Thereafter |  | 16,972 |
Total |  | $ | 82,838 |
In addition to the supplemental lease information disclosed above, we are also party to two lease guarantees, whereby Belden has covenanted the lease payments for two Grass Valley property leases which expire in 2029 and 2035 and collectively have approximately $20 million of fixed lease payments remaining. These lease guarantees were retained by Belden and not transferred to Black Dragon Capital as part of the Grass Valley sale in 2020 (see Note 5). Belden is required to make lease payments only if the primary obligor defaults. During 2022, Grass Valley defaulted on both property leases. In 2022, we recognized costs of $10.1 million related to the guarantees in selling, general and administrative expenses. These costs were excluded from Segment EBITDA of our Enterprise Solutions segment. As of December 31, 2022, $9.4 million of the $10.1 million remained as a liability for expected, future payments. The liability is based on certain assumptions, such as receiving a level of sublease income, that we will reassess on an ongoing basis. We will update the estimated liability balance for changes in assumptions as needed.
Leases | Leases We have operating and finance leases for properties, including manufacturing facilities, warehouses, and office space; as well as vehicles and certain equipment. We make certain judgments in determining whether a contract contains a lease in accordance with ASU 2016-02. Our leases have remaining lease terms of less than 1 year to 15 years, some of which include options to extend the lease for a period of up to 15 years and some include options to terminate the leases within 1 year. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably certain as of the commencement date of the lease. Our lease agreements do not contain material residual value guarantees, and our variable lease payments were $2.9 million and $2.4 million during the years ended December 31, 2022 and 2021, respectively. We have entered into various short-term operating leases with an initial term of twelve months or less. These leases are not recorded on our balance sheet as of December 31, 2022 or 2021, and the rent expense for short-term leases was not material. We have certain property and equipment lease contracts that may contain lease and non-lease components, and we have elected to utilize the practical expedient to account for these components together as a single combined lease component. As the rate implicit in most of our leases is not readily determinable, we use the incremental borrowing rate to determine the present value of the lease payments, which is unique to each leased asset and is based upon the term, commencement date, location, and local currency of the leased asset as well as the credit rating of the legal entity leasing the asset. The components of lease expense were as follows:
| Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (In thousands)
Operating lease cost | $ | 21,420 |  |  | $ | 18,607 |  |  | $ | 17,009 |
Finance lease cost |  |  |  |  |
Amortization of right-of-use asset | $ | 878 |  |  | $ | 528 |  |  | $ | 124 |
Interest on lease liabilities | 258 |  | 14 |  |  | 16 |
Total finance lease cost | $ | 1,136 |  |  | $ | 542 |  |  | $ | 140 |
Supplemental cash flow information related to leases was as follows:
| Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (In thousands)
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases | $ | 18,338 |  | $ | 15,737 |  |  | $ | 13,629 |
Operating and financing cash flows from finance leases were not material for the years ended December 31, 2022, 2021 and 2020. Supplemental balance sheet information related to leases was as follows:
| December 31,
| 2022 |  | 2021
| (In thousands, except lease term and discount rate)
Operating leases: |  |  |
Total operating lease right-of-use assets | $ | 73,376 |  |  | $ | 75,571 |
Accrued liabilities | $ | 16,442 |  |  | $ | 16,377 |
Long-term operating lease liabilities | 59,250 |  |  | 61,967 |
Total operating lease liabilities | $ | 75,692 |  |  | $ | 78,344 |
Finance leases: |  |  |
Other long-lived assets, at cost | $ | 6,323 |  |  | $ | 3,650 |
Accumulated depreciation | (733) |  |  | (557) |
Other long-lived assets, net | $ | 5,590 |  |  | $ | 3,093 |
Accrued liabilities | $ | 391 |  |  | $ | 140 |
Other long-term liabilities | 5,928 |  |  | 323 |
Total finance lease liabilities | $ | 6,319 |  |  | $ | 463 |
Weighted Average Remaining Lease Term |  |  |
Operating leases | 6 years |  | 6 years
Finance leases | 10 years |  | 4 years
Weighted Average Discount Rate |  |  |
Operating leases | 5.2% |  | 4.8 | %
Finance leases | 4.2% |  | 4.3 | %
The following table summarizes maturities of lease liabilities as of December 31, 2022 (in thousands):
2023 |  | $ | 15,815 |
2024 |  | 14,809 |
2025 |  | 13,472 |
2026 |  | 11,964 |
2027 |  | 6,464 |
Thereafter |  | 20,907 |
Total |  | $ | 83,431 |
The following table summarizes maturities of lease liabilities as of December 31, 2021 (in thousands):
2022 |  | $ | 17,630 |
2023 |  | 15,129 |
2024 |  | 12,342 |
2025 |  | 11,040 |
2026 |  | 9,725 |
Thereafter |  | 16,972 |
Total |  | $ | 82,838 |
In addition to the supplemental lease information disclosed above, we are also party to two lease guarantees, whereby Belden has covenanted the lease payments for two Grass Valley property leases which expire in 2029 and 2035 and collectively have approximately $20 million of fixed lease payments remaining. These lease guarantees were retained by Belden and not transferred to Black Dragon Capital as part of the Grass Valley sale in 2020 (see Note 5). Belden is required to make lease payments only if the primary obligor defaults. During 2022, Grass Valley defaulted on both property leases. In 2022, we recognized costs of $10.1 million related to the guarantees in selling, general and administrative expenses. These costs were excluded from Segment EBITDA of our Enterprise Solutions segment. As of December 31, 2022, $9.4 million of the $10.1 million remained as a liability for expected, future payments. The liability is based on certain assumptions, such as receiving a level of sublease income, that we will reassess on an ongoing basis. We will update the estimated liability balance for changes in assumptions as needed.

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + 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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
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