Leases

3 Months Ended

Mar. 31, 2024

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 not included any of the renewal options in our operating lease payments as we concluded that it is not reasonably certain that we will exercise any of these renewal options. 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	March 31, 2024		December 31, 2023
Assets
Operating lease right-of-use assets	$	102,060	$	100,065

Liabilities
Sundry payables and accrued expenses	$	17,973	$	17,139
Noncurrent operating lease liabilities		90,667		88,974
Total operating lease liabilities	$	108,640	$	106,113
Weighted Average Remaining Lease Term
Operating leases	8.3 Years		8.3 Years
Weighted Average Discount Rate
Operating leases		4.9%		4.8%

	Three Months Ended
Expense and Cash Flow Information	March 31,
Lease Expense	2024		2023
Operating lease expense (a)	$	4,820	$	3,109

Supplemental Cash Flow Information
Cash paid for the amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,131	$	2,834
Right-of-use assets obtained in exchange for new operating lease obligations (b)	$	5,628	$	29,092

(a)	Excludes expenses of approximately $0.8 million for each of the three months ended March 31, 2024 and 2023, 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 $4.7 million of right-of-use assets related to the lease modification and extension for our manufacturing facility in Bialystok, Poland during the three months ended March 31, 2024, and $27.8 million of right-of-use assets related to the lease modification and extension for our distribution center and office in Lewisville, Texas during the three months ended March 31, 2023.

Minimum Lease Payments

At March 31, 2024, we are obligated to make minimum lease payments through 2034, under operating leases, which are as follows (in thousands):

2024	$	13,904
2025		16,624
2026		15,190
2027		14,245
2028		12,616
Thereafter		62,092
Total lease payments	$	134,671
Less: Interest		(26,031	)
Present value of lease liabilities	$	108,640