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Leases | 9 Months Ended
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Sep. 30, 2023
Leases [Abstract] |
Leases | LEASES The Company has operating leases with fixed payment terms for certain buildings and warehouses. The Company's leases have remaining lease terms of less than one year to four years, some of which include options to extend the lease for five years. Operating leases are included in operating lease right-of-use ("ROU") assets, accrued other liabilities and other non-current liabilities in the Consolidated Balance Sheets. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. The Company used the applicable incremental borrowing rate at implementation date to measure lease liabilities and ROU assets. The incremental borrowing rate used by the Company was based on baseline rates and adjusted by the credit spreads commensurate with the Company’s secured borrowing rate. At each reporting period when there is a new lease initiated, the Company will utilize its incremental borrowing rate to perform lease classification tests on lease components and to measure ROU assets and lease liabilities. The components of lease expense were as follows (in thousands):
| Three months ended September 30, |  | Nine months ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Operating lease cost | $ | 497 |  |  | $ | 419 |  |  | $ | 1,360 |  |  | $ | 1,265 |
Short-term lease cost | 474 |  |  | 389 |  |  | 1,440 |  |  | 1,097 |
Total net lease cost | $ | 971 |  |  | $ | 808 |  |  | $ | 2,800 |  |  | $ | 2,362 |
Other supplemental balance sheet information related to leases was as follows (in thousands):
| September 30, 2023 |  | December 31, 2022
Operating lease right of use assets | $ | 4,261 |  |  | $ | 5,114 |
Current operating lease liabilities(A) | $ | 1,938 |  |  | $ | 1,626 |
Noncurrent operating lease liabilities(B) | 2,318 |  |  | 3,516 |
Total operating lease liabilities | $ | 4,256 |  |  | $ | 5,142 |
(A)Current operating lease liabilities are included in accrued other liabilities in the Consolidated Balance Sheets. (B)Noncurrent operating lease liabilities are included in other non-current liabilities in the Consolidated Balance Sheets. The following table presents certain information related to lease terms and discount rates for leases:
Operating leases | September 30, 2023 |  | December 31, 2022 |
Weighted average remaining lease term (in years): | 2.6 |  | 3.6 |
Weighted average discount rate: | 5.5 | % |  | 4.1 | % |
For the nine months ended September 30, 2023 and 2022, cash payments on amounts included in the measurement of lease liabilities were $1,590,000 and $1,265,000, respectively. During the nine months ended September 30, 2023, the Company terminated a lease for the secondary warehouse in Monterrey, Mexico. As a result, the Company wrote off approximately $1,548,000 and $1,660,000 of lease assets and lease liabilities, respectively, related to this lease. The Company then entered into a new lease related to the secondary warehouse in Monterrey, Mexico, which resulted in right of use assets obtained in exchange for new operating lease liabilities of $641,000. The Company also entered into a new lease related to a warehouse in Matamoros, Mexico, which resulted in additional right of use assets obtained in exchange for new operating lease liabilities of $1,172,000. During the nine months ended September 30, 2022, there were no right of use assets obtained in exchange for new operating lease liabilities. Maturities of operating lease liabilities were as follows (in thousands):
|  | September 30, 2023 |  | December 31, 2022 |
| 2023 (remainder of year) | $ | 529 |  |  | $ | 1,716 |  |
| 2024 | 2,127 |  |  | 1,722 |  |
| 2025 | 1,121 |  |  | 1,065 |  |
| 2026 | 594 |  |  | 979 |  |
| 2027 | 189 |  |  | 189 |  |
| Total lease payments | 4,560 |  |  | 5,671 |  |
| Less: imputed interest | (304) |  |  | (529) |  |
| Total lease obligations | 4,256 |  |  | 5,142 |  |
| Less: current obligations | (1,938) |  |  | (1,626) |  |
| Long-term lease obligations | $ | 2,318 |  |  | $ | 3,516 |  |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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