Leases

12 Months Ended

Dec. 31, 2020

The Company has operating and finance leases for regional offices, manufacturing facilities, retail centers, distribution centers and certain equipment. The Company’s leases have remaining lease terms of 1 year to 25 years, some of which include options to extend the leases for up to 20 years, and some of which include options to terminate the leases within 1 year.

As of December 31, 2020, the weighted average remaining lease term was 6.4 and 4.7 years for operating and finance leases, respectively. As of December 31, 2020, the weighted average discount rate was 4.3% and 3.8% for operating and finance leases, respectively.

The components of lease expense were as follows (U.S. dollars in thousands):

	Year Ended December 31,
	2020			2019
Operating lease expense
Operating lease cost	$	51,828		$	51,072
Variable lease cost		4,366			3,387
Short-term lease cost		1,056			169
Sublease income		(5,052	)		(5,743	)
Finance lease expense
Amortization of right-of-use assets		1,023			—
Interest on lease liabilities		154			—
Total lease expense	$	53,375		$	48,885

Supplemental cash flow information related to leases was as follows (U.S. dollars in thousands):

	Year Ended December 31,
	2020		2019
Operating cash outflow from operating leases	$	56,395	$	54,993
Operating cash outflow from finance leases	$	138	$	—
Financing cash outflow from finance leases	$	709	$	—
Right-of-use assets obtained in exchange for operating lease obligations	$	82,662	$	184,502
Right-of-use assets obtained in exchange for finance lease obligations	$	9,206	$	—

Maturities of lease liabilities were as follows (U.S. dollars in thousands):

Year Ending December 31,	Operating Leases		Finance Leases
2021	$	49,045	$	2,270
2022		34,617		2,267
2023		23,948		2,183
2024		19,064		2,085
2025		14,152		1,469
Thereafter		36,898		313
Total		177,724		10,587
Less: Finance charges		22,116		911
Total principal liability	$	155,608	$	9,676

The Company has additional lease liabilities of 0.2 million which have not yet commenced as of December 31, 2020, and as such, have not been recognized on the consolidated balance sheets.