LEASES

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

LEASES

LEASES

We lease office space, warehouses, land, automobiles, office, and manufacturing equipment. All of our leases are classified as operating leases. Our leases have remaining lease terms within 1 month to 9 years, some of which include options to extend the leases for up to 14 years. The exercise of lease renewal options is at our sole discretion. Our lease agreements do not include options to purchase the leased property. Lease costs recognized in Selling, general, and administrative expense was $24.5 million and $24.2 million for the years ended December 31, 2022 and 2021, respectively.

Supplemental cash flow information related to leases was as follows (in thousands):

	Twelve Months Ended December 31, 2022		Twelve Months Ended December 31, 2021
Lease
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	20,584	$	20,142
Right-of-use assets obtained in exchange for lease liabilities
Operating leases	$	22,917	$	24,735

Supplemental balance sheet information related to leases was as follows (in thousand):

Lease	Classification	December 31, 2022		December 31, 2021
Assets
Operating	Operating lease right-of-use assets	$	57,402	$	57,221
Liabilities
Current operating	Short-term operating lease liabilities	18,083		18,203
Non-current operating	Long-term operating lease liabilities	40,189		39,922
Total operating lease liabilities		$	58,272	$	58,125

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments.

Maturities of lease liabilities are as follows (in thousands):

Year Ending December 31,	Operating leases (*)
2023	$	21,400
2024	15,841
2025	11,559
2026	8,096
2027	4,454
Thereafter	4,740
Total lease payments	66,090
Less: imputed interest	7,818
Present value of lease liabilities	$	58,272

(*) Operating lease payments exclude $0.2 million and $0.5 million of minimum lease payments for leases signed but not yet commenced as of December 31, 2022 and December 31, 2021, respectively.

Rental expense for operating leases was $24.5 million, $24.2 million and $23.4 million for the years ended December, 2022, 2021 and 2020, respectively.

Lease term and discount rate	Twelve Months Ended December 31, 2022	Twelve Months Ended December 31, 2021
Weighted average remaining lease term (years)
Operating lease	4.10	4.53
Weighted average discount rate
Operating lease	6.5%	6.5%

For the twelve months ended December 31, 2022, the Company incurred approximately $1.9 million in lease expenses to entities controlled by the Company's Chief Executive Officer, David Little and family.