Leases

12 Months Ended

Dec. 31, 2023

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 20 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, 2023, the weighted average remaining lease term was 8.5 and 3.7 years for operating and finance leases, respectively. As of December 31, 2023, the weighted average discount rate was 3.6% and 3.7% for operating and finance leases, respectively.

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

	Year Ended December 31,
	2023		2022		2021
Operating lease expense
Operating lease cost	$	29,186	$	39,682	$	48,447
Variable lease cost		4,245		6,061		5,734
Short-term lease cost		—		210		592
Sublease income		—		—		(5,663	)
Finance lease expense
Amortization of right-of-use assets		4,785		2,371		2,398
Interest on lease liabilities		502		268		319
Total lease expense	$	38,718	$	48,592	$	51,827

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

	Year Ended December 31,
	2023		2022		2021
Operating cash outflow from operating leases	$	29,055	$	37,174	$	51,570
Operating cash outflow from finance leases	$	481	$	243	$	322
Financing cash outflow from finance leases	$	3,198	$	1,919	$	1,871
Right-of-use assets obtained in exchange for operating lease obligations	$	27,730	$	34,026	$	25,427
Right-of-use assets obtained in exchange for finance lease obligations	$	1,081	$	9,797	$	74

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

Year Ending December 31,	Operating Leases		Finance Leases
2024	$	23,503	$	3,676
2025		17,440		3,490
2026		12,364		3,397
2027		9,381		3,038
2028		6,473		59
Thereafter		36,936		—
Total		106,097		13,660
Less: Finance charges		14,328		954
Total principal liability	$	91,769	$	12,706

The Company has additional lease liabilities of $0.8 million which have not yet commenced as of December 31, 2023, and as such, have not been recognized on the consolidated balance sheets.