Leases

12 Months Ended

Dec. 31, 2021

7. Leases

Quantitative Lease Disclosures

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 provide quantitative disclosures related to our operating leases and includes all operating leases acquired in the Stabil and Trombetta acquisitions from the date of the acquisition (in thousands):

	December 31,
Balance Sheet Information	2021			2020
Assets
Operating lease right-of-use assets	$	40,469		$	29,958

Liabilities
Sundry payables and accrued expenses	$	10,544		$	8,719
Noncurrent operating lease liabilities		31,206			22,450
Total operating lease liabilities	$	41,750		$	31,169

Weighted Average Remaining Lease Term
Operating leases	5.3 Years			5 Years

Weighted Average Discount Rate
Operating leases		3	%		3.6	%

	Year Ended, December 31,
Expense and Cash Flow Information	2021		2020
Lease Expense
Operating lease expense (a)	$	10,051	$	9,203
Supplemental Cash Flow Information
Cash Paid for the amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	9,985	$	9,087
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases (b)	$	20,975	$	3,180

(a)

Excludes expenses of approximately $2 million and $2.5 million for the years ended December 31, 2021 and 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.

(b)

Includes $8.8 million of right-of-use assets obtained in business acquisitions during the year ended December 31, 2021.

Minimum Lease Payments

At December 31, 2021, we are obligated to make minimum lease payments through 2031, under operating leases, which are as follows (in thousands):

2022	$	10,707
2023		9,537
2024		7,165
2025		5,860
2026		5,109
Thereafter		6,562
Total lease payments	$	44,940
Less: Interest		(3,190	)
Present value of lease liabilities	$	41,750