Leases

12 Months Ended

Dec. 31, 2022

The Company has operating and finance leases for regional offices, manufacturing facilities, retail centers, distribution centers and certain equipment. The Company’s leases have remaining lease terms of 1 year to 22 years, some of which include options to extend the leases for up to 20 years, and some of which include options to terminate the leases within 1 year.

As of December 31, 2022, the weighted average remaining lease term was 8.8 and 4.6 years for operating and finance leases, respectively. As of December 31, 2022, the weighted average discount rate was 3.3% and 3.5% for operating and finance leases, respectively.

The components of lease expense were as follows (U.S. dollars in thousands):

	Year Ended December 31,
	2022		2021			2020
Operating lease expense
Operating lease cost	$	39,682	$	48,447		$	51,828
Variable lease cost		6,061		5,734			4,366
Short-term lease cost		210		592			1,056
Sublease income		—		(5,663	)		(5,052	)
Finance lease expense
Amortization of right-of-use assets		2,371		2,398			1,023
Interest on lease liabilities		268		319			154
Total lease expense	$	48,592	$	51,827		$	53,375

Supplemental cash flow information related to leases was as follows (U.S. dollars in thousands):

	Year Ended December 31,
	2022		2021		2020
Operating cash outflow from operating leases	$	37,174	$	51,570	$	56,395
Operating cash outflow from finance leases	$	243	$	322	$	138
Financing cash outflow from finance leases	$	1,919	$	1,871	$	709
Right-of-use assets obtained in exchange for operating lease obligations	$	34,026	$	25,427	$	82,662
Right-of-use assets obtained in exchange for finance lease obligations	$	9,797	$	74	$	9,206

Maturities of lease liabilities were as follows (U.S. dollars in thousands):

Year Ending December 31,	Operating Leases		Finance Leases
2023	$	26,086	$	3,836
2024		18,808		3,428
2025		13,338		3,371
2026		8,692		3,277
2027		7,690		2,933
Thereafter		42,385		—
Total		116,999		16,845
Less: Finance charges		15,542		1,362
Total principal liability	$	101,457	$	15,483

The Company has additional lease liabilities of $5.5 million which have not yet commenced as of December 31, 2022, and as such, have not been recognized on the consolidated balance sheets.