Leases

3 Months Ended

Mar. 31, 2023

We have entered into various operating lease agreements for automobiles, offices and manufacturing facilities throughout the world. At March 31, 2023, our operating leases had remaining lease terms of up to 38 years, including any reasonably probable extensions.

Lease balances within our consolidated balance sheet were as follows:


(In thousands)	March 31, 2023		December 31, 2022
Assets:
Operating lease right-of-use assets	$	20,236	$	21,599
Liabilities:
Other accrued liabilities	$	5,222	$	5,509
Long-term operating lease obligations	13,983		15,027
Total lease liabilities	$	19,205	$	20,536

Operating lease expense, including variable and short-term lease costs, which were insignificant to the total operating lease cash flows, and supplemental cash flow information were as follows:


(In thousands)	Three Months Ended March 31,
	2023		2022
Cost of sales	$	792	$	635
Selling, general and administrative expenses	1,076		1,108
Total operating lease expense	$	1,868	$	1,743
Operating cash outflows from operating leases	$	1,831	$	1,679
Operating lease right-of-use assets obtained in exchange for lease obligations	$	—	$	2,959

The weighted average remaining lease liability term and the weighted average discount rate were as follows:


	March 31, 2023		December 31, 2022
Weighted average lease liability term (in years)	5.0		5.1
Weighted average discount rate	3.87	%	3.82	%

The following table reconciles the undiscounted cash flows for each of the first five years and thereafter to the operating lease liabilities recognized in our consolidated balance sheet at March 31, 2023. The reconciliation excludes short-term leases that are not recorded on the balance sheet.


(In thousands)	March 31, 2023
2023 (remaining 9 months)	$	4,620
2024	5,223
2025	4,216
2026	2,633
2027	1,918
Thereafter	2,879
Total lease payments	21,489
Less: imputed interest	(2,284)
Total lease liabilities	$	19,205

At March 31, 2023, we had one operating lease with a three-year term that had not yet commenced. The total initial lease liability, which is immaterial to the balance sheet, is not reflected within the above maturity schedule.