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Commitments and Contingencies
 9 Months Ended
Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies ote O - Commitments and ContingenciesIn the normal course of business, the Company and its subsidiaries are involved in various claims and legal proceedings. While the ultimate resolution of these matters has yet to be determined, the Company does not
believe that any unfavorable outcomes will have a material adverse effect on the Company's consolidated financial position or results of operations.
Leases
The Company and its subsidiaries lease manufacturing facilities, warehouses, office facilities, retail stores, equipment and vehicles under various operating arrangements. Certain of the leases are subject to escalation clauses and renewal periods. The Company and its subsidiaries recognize lease expense, including predetermined fixed escalations, on a straight-line basis over the initial term of the lease including reasonably assured renewal periods from the time that the Company and its subsidiaries control the leased property. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Certain of our subsidiaries have leases that contain both fixed rent costs and variable rent costs based on achievement of certain operating metrics. The variable lease expense was not a material component of our total lease expense for the three and nine months ended September 30, 2022 and 2021. The Company recognized $11.8 million and $33.4 million in the three and nine months ended September 30, 2022 and $8.2 million and $24.3 million in the three and nine months ended September 30, 2021, respectively, in expense related to operating leases in the condensed consolidated statements of operations.
The maturities of lease liabilities at September 30, 2022 are as follows (in thousands):
2022 (excluding nine months ended September 30, 2022)$10,371 
202339,249 
202434,345 
202529,815 
202626,147 
Thereafter63,177 
Total undiscounted lease payments$203,104 
Less: Interest39,720 
Present value of lease liabilities$163,384 
The calculated amount of the right-of-use assets and lease liabilities in the table above are impacted by the length of the lease term and discount rate used to present value the minimum lease payments. The Company's lease agreements often include one or more options to renew at the company's discretion. In general, it is not reasonably certain that lease renewals will be exercised at lease commencement and therefore lease renewals are not included in the lease term. Regarding the discount rate, lease accounting guidance requires the use of a rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes the incremental borrowing rate of the subsidiary entering into the lease arrangement, on a collateralized basis, over a similar term as adjusted for any country specific risk.
The weighted average remaining lease terms and discount rates for all of our operating leases were as follows:
Lease Term and Discount RateSeptember 30, 2022September 30, 2021
Weighted-average remaining lease term (years)6.055.51
Weighted-average discount rate7.16 %7.62 %
Supplemental balance sheet information related to leases was as follows (in thousands):
Line Item in the Company’s Consolidated Balance SheetSeptember 30, 2022December 31, 2021
Operating lease right-of-use assetsOther non-current assets$143,754 $124,438 
Current portion, operating lease liabilitiesOther current liabilities$29,694 $27,242 
Operating lease liabilitiesOther non-current liabilities$133,690 $110,287 
Supplemental cash flow information related to leases was as follows (in thousands):
Nine months ended September 30, 2022Nine months ended September 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
   Operating cash flows from operating leases$29,805 $21,053 
Right-of-use assets obtained in exchange for lease obligations:
   Operating leases$39,811 $13,633