Leases

6 Months Ended

Jun. 30, 2022

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

Balance Sheet Information	June 30, 2022			December 31, 2021
Assets
Operating lease right-of-use assets	$	39,827		$	40,469

Liabilities
Sundry payables and accrued expenses	$	11,122		$	10,544
Noncurrent operating lease liabilities		30,039			31,206
Total operating lease liabilities	$	41,161		$	41,750

Weighted Average Remaining Lease Term
Operating leases	4.9 Years			5.3 Years

Weighted Average Discount Rate
Operating leases		3.1	%		3	%

Expense and Cash Flow Information	Three Months Ended June 30,
	2022		2021
Lease Expense
Operating lease expense (a)	$	2,711	$	2,441

	Six Months Ended June 30,
	2022		2021
Lease Expense
Operating lease expense (a)	$	5,541	$	4,777

Supplemental Cash Flow Information
Cash paid for the amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,397	$	4,733
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	4,458	$	14,077

(a)

Excludes expenses of approximately $0.7 million and $1.1 million for the three and six months ended June 30, 2022, respectively, and approximately $0.3 million and $0.9 million for the comparable periods in 2021, 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, 2022, we are obligated to make minimum lease payments through 2031, under operating leases, which are as follows (in thousands):

2022	$	5,784
2023		10,788
2024		8,316
2025		6,588
2026		5,780
Thereafter		6,851
Total lease payments	$	44,107
Less: Interest		(2,946	)
Present value of lease liabilities	$	41,161