Leases

6 Months Ended

Jun. 30, 2021

Note 8. Leases

We have operating and finance leases for our manufacturing facilities, warehouses, office space, automobiles, and certain equipment. Our leases have remaining lease terms of up to ten years, some of which may include one or more five-year renewal options. We have included the five-year renewal option for one of our leases in our operating lease payments as we concluded that it is reasonably certain that we will exercise the option. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Operating lease expense is recognized on a straight-line basis over the lease term. Finance leases are not material.

The following tables provides quantitative disclosures related to our operating leases and includes all operating leases acquired in the Trombetta acquisition from the date of acquisition (in thousands):

Balance Sheet Information	June 30, 2021			December 31, 2020
Assets
Operating lease right-of-use assets	$	39,095		$	29,958

Liabilities
Sundry payables and accrued expenses	$	9,851		$	8,719
Noncurrent operating lease liabilities		30,495			22,450
Total operating lease liabilities	$	40,346		$	31,169

Weighted Average Remaining Lease Term
Operating leases	5.2 Years			5 Years

Weighted Average Discount Rate
Operating leases		3.2	%		3.6	%

	Three Months Ended June 30,
Expense and Cash Flow Information	2021		2020
Lease Expense
Operating lease expense (a)	$	2,441	$	2,303

	Six Months Ended June 30,
	2021		2020
Lease Expense
Operating lease expense (a)	$	4,777	$	4,616

Supplemental Cash Flow Information
Cash paid for the amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,733	$	4,544
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	14,077	$	380

(a)

Excludes expenses of approximately $0.3 million and $0.9 million for the three and six months ended June 30, 2021, respectively, and approximately $0.5 million and $0.9 million for the comparable periods in 2020, respectively, related to non-lease components such as maintenance, property taxes, etc., and operating lease expense for leases with an initial term of 12 months or less, which is not material.

Minimum Lease Payments

At June 30, 2021, we are obligated to make minimum lease payments through 2028, under operating leases, which are as follows (in thousands):

2021	$	5,110
2022		9,681
2023		8,700
2024		6,370
2025		5,248
Thereafter		8,835
Total lease payments	$	43,944
Less: Interest		(3,598	)
Present value of lease liabilities	$	40,346