LEASES

9 Months Ended

Sep. 30, 2023

The Company has operating leases for corporate offices, distribution facilities, a manufacturing plant, and certain vehicles.

The components of lease expense for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Operating lease expenses(1):
Fixed lease expense	$	4,256	$	4,463	$	12,662	$	13,392
Variable lease expense	1,444		1,187		4,194		3,532
Total	$	5,700	$	5,650	$	16,856	$	16,924

(1) Expenses are recorded within distribution expenses and selling, general and administrative expenses on the unaudited condensed consolidated statement of operations.

Supplemental cash flow information for lease related liabilities and assets for the nine months ended September 30, 2023 and 2022 were as follows (in thousands):


	Nine Months Ended September 30,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	14,279	$	14,447


	Nine Months Ended September 30,
	2023		2022
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	5,582	$	2,477

The aggregate future lease payments for operating leases as of September 30, 2023 were as follows (in thousands):


	Operating
2023 (excluding the nine months ended September 30, 2023)	$	4,500
2024	18,853
2025	18,614
2026	18,236
2027	14,110
2028	12,724
Thereafter	18,002
Total lease payments	105,039
Less: Interest	(18,646)
Present value of lease payments	$	86,393

Average lease terms and discount rates were as follows:


	September 30, 2023
Operating leases:
Weighted-average remaining lease term (years)	6.1
Weighted-average discount rate	6.4	%