Leases

3 Months Ended

Mar. 31, 2022

We have entered into various operating lease agreements for automobiles, offices and manufacturing facilities throughout the world. At March 31, 2022, our operating leases had remaining lease terms of up to 39 years, including any reasonably probable extensions.

Lease balances within our consolidated balance sheet were as follows:


(In thousands)	March 31, 2022		December 31, 2021
Assets:
Operating lease right-of-use assets	$	21,245	$	19,847
Liabilities:
Other accrued liabilities	$	5,659	$	4,769
Long-term operating lease obligations	14,787		14,266
Total lease liabilities	$	20,446	$	19,035

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,
	2022		2021
Cost of sales	$	635	$	670
Selling, general and administrative expenses	1,108		1,036
Total operating lease expense	$	1,743	$	1,706
Operating cash outflows from operating leases	$	1,679	$	1,798
Operating lease right-of-use assets obtained in exchange for lease obligations	$	2,959	$	294
Non-cash release of operating lease obligations (1)	$	—	$	654

(1)During the three months ended March 31, 2021, we were released from our guarantee of the lease obligation related to our Ohio call center which was sold in February 2020.

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


	March 31, 2022		December 31, 2021
Weighted average lease liability term (in years)	4.1		4.3
Weighted average discount rate	3.04	%	3.17	%

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, 2022. The reconciliation excludes short-term leases that are not recorded on the balance sheet.


(In thousands)	March 31, 2022
2022 (remaining 9 months)	$	4,639
2023	5,731
2024	4,283
2025	3,465
2026	2,180
Thereafter	1,469
Total lease payments	21,767
Less: imputed interest	(1,321)
Total lease liabilities	$	20,446

At March 31, 2022, we had no operating leases that had not yet commenced.

On April 7, 2022, we entered into a lease agreement for 125,000 square feet of factory space in Vietnam, with a term commencing on April 7, 2022 and continuing through December 1, 2034. The total initial lease liability associated with this lease is $4.5 million, which is not reflected within the maturity schedule above.