Leases

9 Months Ended

Sep. 30, 2023

LEASES

Lease cost is recognized in both the Cost of Sales and Operating Expenses sections of the Condensed Consolidated Statements of Income.


(In thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Lease Cost
Operating lease cost	$	4,448	$	3,917	$	13,255	$	11,968
Short-term lease cost		2,697		1,887		8,215		4,587
Variable lease cost		674		205		1,834		630
Total lease cost	$	7,819	$	6,009	$	23,304	$	17,185
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	$	4,447	$	3,903	$	13,276	$	11,908
Right-of-use assets obtained in exchange for new operating lease liabilities		916		455		8,336		4,017

The following table outlines the maturities of lease liabilities as of September 30, 2023.


(In thousands)
Undiscounted Cash Flows:
2023 (excluding the nine months ended September 30, 2023)	$	4,310
2024		13,549
2025		9,346
2026		6,976
2027		6,270
Subsequent to 2027		38,179
Total Undiscounted Cash Flows	$	78,630
Less: Imputed interest		(12,190	)
Present value	$	66,440
Current operating lease liabilities (1)		12,787
Non-current operating lease liabilities		53,653
Total lease liabilities	$	66,440

(1)

This item is included in the Accrued liabilities line on the Company’s Condensed Consolidated Balance Sheet.


Weighted-average remaining lease term-operating leases	9 Years
Weighted-average discount rate-operating leases		3.6	%

As of September 30, 2023, the Company had equipment and railcars leases, valued at approximately $5,959,000, that had not commenced. These leases will commence during the fourth quarter of 2023 and the first quarter of 2024 with lease terms ranging from 1 year to 7 years.