Leases

6 Months Ended

Jun. 30, 2023

We have entered into various operating lease agreements for automobiles, offices and manufacturing facilities throughout the world. At June 30, 2023, our operating leases had remaining lease terms of up to 37 years, including any reasonably probable extensions.

Lease balances within our consolidated balance sheet were as follows:


(In thousands)	June 30, 2023		December 31, 2022
Assets:
Operating lease right-of-use assets	$	20,327	$	21,599
Liabilities:
Other accrued liabilities	$	5,141	$	5,509
Long-term operating lease obligations	14,222		15,027
Total lease liabilities	$	19,363	$	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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Cost of sales	$	712	$	762	$	1,504	$	1,397
Selling, general and administrative expenses	1,109		1,079		2,185		2,187
Total operating lease expense	$	1,821	$	1,841	$	3,689	$	3,584
Operating cash outflows from operating leases	$	1,746	$	1,781	3,577		3,460
Operating lease right-of-use assets obtained in exchange for lease obligations	$	1,960	$	255	$	1,960	$	3,073

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


	June 30, 2023		December 31, 2022
Weighted average lease liability term (in years)	5.0		5.1
Weighted average discount rate	4.13	%	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 June 30, 2023. The reconciliation excludes short-term leases that are not recorded on the balance sheet.


(In thousands)	June 30, 2023
2023 (remaining 6 months)	$	3,161
2024	5,613
2025	4,675
2026	2,937
2027	2,177
Thereafter	3,167
Total lease payments	21,730
Less: imputed interest	(2,367)
Total lease liabilities	$	19,363

At June 30, 2023, we did not have any operating leases that had not yet commenced.