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Leases | 12 Months Ended
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Dec. 31, 2024
Leases [Abstract] |
Leases | Leases The Company routinely enters into leasing arrangements for real estate (including manufacturing facilities, office space, and warehouses), transportation equipment (automobiles, forklifts, and trailers), and office equipment (copiers and postage machines). The assessment of the certainty associated with the exercise of various lease renewal, termination, and purchase options included in the Company’s lease contracts is performed after contemplating all the relevant facts and circumstances in accordance with guidance under ASC 842, “Leases.” Most real estate leases, in particular, include one or more options to renew, with renewal terms that typically extend the lease term in increments from one to five years. The Company’s leases do not have any significant residual value guarantees or restrictive covenants. The Company completed the Eviosys acquisition on December 4, 2024. The acquisition included operating lease liabilities of $42,468 with a weighted-average remaining lease maturity term and discount rate of 8.1 years and 4.5%, respectively. The Company completed the acquisitions of the Chattanooga Mill and the remaining interest in RTS Packaging on September 8, 2023, which included operating lease liabilities of $34,604 with a weighted-average remaining lease maturity term and discount rate of 11.5 years and 6.4%, respectively. See Note 4 for additional information about these acquisitions. The following table sets forth the balance sheet location and values of the Company’s lease assets and lease liabilities at December 31, 2024 and December 31, 2023:
Classification |  | Balance Sheet Location |  | December 31, 2024 |  | December 31, 2023
Lease Assets |  |  |  |  |  |
Operating lease assets |  | Right of Use Asset - Operating Leases |  | $ | 307,688 |  |  | $ | 233,461 |
Finance lease assets |  | Other Assets |  | 76,831 |  |  | 78,949 |
Total lease assets |  |  |  | $ | 384,519 |  |  | $ | 312,410 |
Lease Liabilities |  |  |  |  |  |
Current operating lease liabilities |  | Accrued expenses and other |  | $ | 52,648 |  |  | $ | 44,279 |
Current finance lease liabilities |  | Notes payable and current portion of long-term debt |  | 22,284 |  |  | 17,268 |
Total current lease liabilities |  |  |  | 74,932 |  |  | 61,547 |
Noncurrent operating lease liabilities |  | Noncurrent Operating Lease Liabilities |  | 258,735 |  |  | 192,703 |
Noncurrent finance lease liabilities |  | Long-term Debt, net of current portion |  | 45,344 |  |  | 55,341 |
Total noncurrent lease liabilities |  |  |  | 304,079 |  |  | 248,044 |
Total lease liabilities |  |  |  | $ | 379,011 |  |  | $ | 309,591 |
Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the right of use asset recorded on the balance sheet was determined based upon factors considered at the commencement date, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term. The following table sets forth the components of the Company’s total lease cost for the years ended December 31, 2024, 2023, and 2022:
Lease Cost |  |  | 2024 |  | 2023 |  | 2022
Operating lease cost | (a) |  | $ | 49,327 |  |  | $ | 43,524 |  |  | $ | 40,485 |
Finance lease cost: |  |  |  |  |  |  |
Amortization of lease asset | (a) (b) |  | 12,871 |  |  | 11,789 |  |  | 10,524 |
Interest on lease liabilities | (c) |  | 3,711 |  |  | 3,912 |  |  | 4,023 |
Variable lease cost | (a) (d) |  | 31,404 |  |  | 32,016 |  |  | 20,317 |
Impairment charges | (e) |  | — |  |  | — |  |  | 61 |
Total lease cost |  |  | $ | 97,313 |  |  | $ | 91,241 |  |  | $ | 75,410 |
(a) Production-related and administrative amounts are included in cost of sales and selling, general and administrative expenses, respectively. (b) Included in depreciation and amortization. (c) Included in interest expense. (d) Also includes short-term lease costs, which are deemed immaterial. (e) Impairment charges are included in “Restructuring/asset impairment charges” in the Company’s Consolidated Statements of Income. See Note 5 for more information. The following table sets forth the five-year maturity schedule of the Company’s lease liabilities as of December 31, 2024:
Maturity of Lease Liabilities |  | Operating Leases |  | Finance Leases |  | Total
2025 |  | $ | 55,277 |  |  | $ | 22,814 |  |  | $ | 78,091 |
2026 |  | 46,883 |  |  | 18,488 |  |  | 65,371 |
2027 |  | 40,440 |  |  | 6,038 |  |  | 46,478 |
2028 |  | 35,633 |  |  | 5,000 |  |  | 40,633 |
2029 |  | 33,545 |  |  | 3,716 |  |  | 37,261 |
Beyond 2029 |  | 183,690 |  |  | 20,795 |  |  | 204,485 |
Total lease payments |  | 395,468 |  |  | 76,851 |  |  | 472,319 |
Less: Interest |  | 84,085 |  |  | 9,223 |  |  | 93,308 |
Lease Liabilities |  | $ | 311,383 |  |  | $ | 67,628 |  |  | $ | 379,011 |
The following tables set forth the Company’s weighted average remaining lease term and discount rates used in the calculation of its outstanding lease liabilities at December 31, 2024, 2023, and 2022, along with other lease-related information for the years ended December 31, 2024, 2023, and 2022:
Lease Term and Discount Rate | 2024 |  | 2023 |  | 2022
Weighted-average remaining lease term (years): |  |  |  |  |
Operating leases | 10.1 |  | 10.0 |  | 10.4
Finance leases | 6.7 |  | 7.1 |  | 7.7
Weighted-average discount rate: |  |  |  |  |
Operating leases | 4.97% |  | 5.07% |  | 4.22%
Finance leases | 5.16% |  | 5.27% |  | 5.29%
Other Information | 2024 |  | 2023 |  | 2022
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows used by operating leases | $ | 48,380 |  |  | $ | 43,638 |  |  | $ | 40,595 |
Operating cash flows used by finance leases | $ | 3,711 |  |  | $ | 3,912 |  |  | $ | 4,023 |
Financing cash flows used by finance leases | $ | 15,433 |  |  | $ | 14,617 |  |  | $ | 11,090 |
Leased assets obtained in exchange for new operating lease liabilities | $ | 66,585 |  |  | $ | 18,225 |  |  | $ | 32,860 |
Leased assets obtained in exchange for new finance lease liabilities | $ | 11,925 |  |  | $ | 7,755 |  |  | $ | 9,349 |
Modification to leased assets for increase in operating lease liabilities | $ | 37,731 |  |  | $ | 4,431 |  |  | $ | 1,215 |
Modification to leased assets for increase/(decrease) in finance lease liabilities | $ | 53 |  |  | $ | 18 |  |  | $ | (841) |
Termination reclasses to decrease operating lease assets | $ | 5,765 |  |  | $ | 5,702 |  |  | $ | (3,695) |
Termination reclasses to decrease operating lease liabilities | $ | 5,768 |  |  | $ | 6,063 |  |  | $ | (4,015) |
Termination reclasses to decrease finance lease assets | $ | 270 |  |  | $ | 1,429 |  |  | $ | (44) |
Termination reclasses to decrease finance lease liabilities | $ | 271 |  |  | $ | 482 |  |  | $ | (44) |
Leases | Leases The Company routinely enters into leasing arrangements for real estate (including manufacturing facilities, office space, and warehouses), transportation equipment (automobiles, forklifts, and trailers), and office equipment (copiers and postage machines). The assessment of the certainty associated with the exercise of various lease renewal, termination, and purchase options included in the Company’s lease contracts is performed after contemplating all the relevant facts and circumstances in accordance with guidance under ASC 842, “Leases.” Most real estate leases, in particular, include one or more options to renew, with renewal terms that typically extend the lease term in increments from one to five years. The Company’s leases do not have any significant residual value guarantees or restrictive covenants. The Company completed the Eviosys acquisition on December 4, 2024. The acquisition included operating lease liabilities of $42,468 with a weighted-average remaining lease maturity term and discount rate of 8.1 years and 4.5%, respectively. The Company completed the acquisitions of the Chattanooga Mill and the remaining interest in RTS Packaging on September 8, 2023, which included operating lease liabilities of $34,604 with a weighted-average remaining lease maturity term and discount rate of 11.5 years and 6.4%, respectively. See Note 4 for additional information about these acquisitions. The following table sets forth the balance sheet location and values of the Company’s lease assets and lease liabilities at December 31, 2024 and December 31, 2023:
Classification |  | Balance Sheet Location |  | December 31, 2024 |  | December 31, 2023
Lease Assets |  |  |  |  |  |
Operating lease assets |  | Right of Use Asset - Operating Leases |  | $ | 307,688 |  |  | $ | 233,461 |
Finance lease assets |  | Other Assets |  | 76,831 |  |  | 78,949 |
Total lease assets |  |  |  | $ | 384,519 |  |  | $ | 312,410 |
Lease Liabilities |  |  |  |  |  |
Current operating lease liabilities |  | Accrued expenses and other |  | $ | 52,648 |  |  | $ | 44,279 |
Current finance lease liabilities |  | Notes payable and current portion of long-term debt |  | 22,284 |  |  | 17,268 |
Total current lease liabilities |  |  |  | 74,932 |  |  | 61,547 |
Noncurrent operating lease liabilities |  | Noncurrent Operating Lease Liabilities |  | 258,735 |  |  | 192,703 |
Noncurrent finance lease liabilities |  | Long-term Debt, net of current portion |  | 45,344 |  |  | 55,341 |
Total noncurrent lease liabilities |  |  |  | 304,079 |  |  | 248,044 |
Total lease liabilities |  |  |  | $ | 379,011 |  |  | $ | 309,591 |
Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the right of use asset recorded on the balance sheet was determined based upon factors considered at the commencement date, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term. The following table sets forth the components of the Company’s total lease cost for the years ended December 31, 2024, 2023, and 2022:
Lease Cost |  |  | 2024 |  | 2023 |  | 2022
Operating lease cost | (a) |  | $ | 49,327 |  |  | $ | 43,524 |  |  | $ | 40,485 |
Finance lease cost: |  |  |  |  |  |  |
Amortization of lease asset | (a) (b) |  | 12,871 |  |  | 11,789 |  |  | 10,524 |
Interest on lease liabilities | (c) |  | 3,711 |  |  | 3,912 |  |  | 4,023 |
Variable lease cost | (a) (d) |  | 31,404 |  |  | 32,016 |  |  | 20,317 |
Impairment charges | (e) |  | — |  |  | — |  |  | 61 |
Total lease cost |  |  | $ | 97,313 |  |  | $ | 91,241 |  |  | $ | 75,410 |
(a) Production-related and administrative amounts are included in cost of sales and selling, general and administrative expenses, respectively. (b) Included in depreciation and amortization. (c) Included in interest expense. (d) Also includes short-term lease costs, which are deemed immaterial. (e) Impairment charges are included in “Restructuring/asset impairment charges” in the Company’s Consolidated Statements of Income. See Note 5 for more information. The following table sets forth the five-year maturity schedule of the Company’s lease liabilities as of December 31, 2024:
Maturity of Lease Liabilities |  | Operating Leases |  | Finance Leases |  | Total
2025 |  | $ | 55,277 |  |  | $ | 22,814 |  |  | $ | 78,091 |
2026 |  | 46,883 |  |  | 18,488 |  |  | 65,371 |
2027 |  | 40,440 |  |  | 6,038 |  |  | 46,478 |
2028 |  | 35,633 |  |  | 5,000 |  |  | 40,633 |
2029 |  | 33,545 |  |  | 3,716 |  |  | 37,261 |
Beyond 2029 |  | 183,690 |  |  | 20,795 |  |  | 204,485 |
Total lease payments |  | 395,468 |  |  | 76,851 |  |  | 472,319 |
Less: Interest |  | 84,085 |  |  | 9,223 |  |  | 93,308 |
Lease Liabilities |  | $ | 311,383 |  |  | $ | 67,628 |  |  | $ | 379,011 |
The following tables set forth the Company’s weighted average remaining lease term and discount rates used in the calculation of its outstanding lease liabilities at December 31, 2024, 2023, and 2022, along with other lease-related information for the years ended December 31, 2024, 2023, and 2022:
Lease Term and Discount Rate | 2024 |  | 2023 |  | 2022
Weighted-average remaining lease term (years): |  |  |  |  |
Operating leases | 10.1 |  | 10.0 |  | 10.4
Finance leases | 6.7 |  | 7.1 |  | 7.7
Weighted-average discount rate: |  |  |  |  |
Operating leases | 4.97% |  | 5.07% |  | 4.22%
Finance leases | 5.16% |  | 5.27% |  | 5.29%
Other Information | 2024 |  | 2023 |  | 2022
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows used by operating leases | $ | 48,380 |  |  | $ | 43,638 |  |  | $ | 40,595 |
Operating cash flows used by finance leases | $ | 3,711 |  |  | $ | 3,912 |  |  | $ | 4,023 |
Financing cash flows used by finance leases | $ | 15,433 |  |  | $ | 14,617 |  |  | $ | 11,090 |
Leased assets obtained in exchange for new operating lease liabilities | $ | 66,585 |  |  | $ | 18,225 |  |  | $ | 32,860 |
Leased assets obtained in exchange for new finance lease liabilities | $ | 11,925 |  |  | $ | 7,755 |  |  | $ | 9,349 |
Modification to leased assets for increase in operating lease liabilities | $ | 37,731 |  |  | $ | 4,431 |  |  | $ | 1,215 |
Modification to leased assets for increase/(decrease) in finance lease liabilities | $ | 53 |  |  | $ | 18 |  |  | $ | (841) |
Termination reclasses to decrease operating lease assets | $ | 5,765 |  |  | $ | 5,702 |  |  | $ | (3,695) |
Termination reclasses to decrease operating lease liabilities | $ | 5,768 |  |  | $ | 6,063 |  |  | $ | (4,015) |
Termination reclasses to decrease finance lease assets | $ | 270 |  |  | $ | 1,429 |  |  | $ | (44) |
Termination reclasses to decrease finance lease liabilities | $ | 271 |  |  | $ | 482 |  |  | $ | (44) |

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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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