Leases

12 Months Ended

Dec. 31, 2021

Leases of Lessee Disclosure [Text Block]

LEASESThe Company adopted ASC 842 - Leases with an effective date of January 1, 2019. The operating lease right-of-use asset recognized upon adoption was $92.7 million, and the lease liability was $93.5 million. The Company elected the practical expedients package under ASC 842, and accordingly did not reassess any previously expired or existing arrangements, and related classification under ASC 840 - Leases.

The Company’s operating leases primarily comprise real estate and vehicles. Real estate leases are largely related to sales and marketing, service, and administrative offices, while vehicle leases are primarily related to the Company’s field sales and service organization. The consolidated balance sheet included the following balances as of December 31:


	2021		2020		Balance Sheet Location
Right-of-use assets, net	$	118,499	$	98,624	Other non-current assets

Current lease liability	$	30,636	$	29,216	Accrued and other liabilities
Non-current lease liability	88,316		69,830		Other non-current liabilities
Total operating lease liability	$	118,952	$	99,046

As of December 31, 2021, the Company has not entered into any material real estate operating leases expected to commence in 2022.

For the years ended December 31, 2021 and 2020, the Company had the following recorded in selling, general, and administrative associated with leasing arrangements:


	2021		2020		2019
Operating lease expense	$	36,137	$	34,559	$	33,666
Variable lease expense	4,503		4,182		4,337
Short-term lease expense	1,018		991		1,187
Total lease expense	$	41,658	$	39,732	$	39,190

Weighted average remaining lease term	7.4 years		6.8 years		6.4 years
Weighted average discount rate	2.1%		2.5%		2.9		%

Accruals and other on the consolidated statement of cash flows includes the amortization of the lease right-of-use asset of $33.7 million, $32.1 million, and $31.1 million, offset by a change in the lease liability of $33.7 million, $31.7 million, and $30.1 million for the years ended December 31, 2021, 2020, and 2019, respectively. Lease payments within operating activities were $35.5 million, $36.0 million, and $33.5 million for the years ended December 31, 2021, 2020, and 2019, respectively. The Company also obtained non-cash lease right-of-use assets in exchange for lease liabilities of $46.4 million, $35.0 million, and $25.7 million for the years ended December 31, 2021, 2020, and 2019, respectively.

The following is a maturity analysis of the annual undiscounted cash flows for the annual periods ended December 31:


2022	$	32,865
2023	24,785
2024	16,156
2025	9,902
2026	7,413
Thereafter	38,212
Total lease payments	129,333
Less imputed interest	(10,381)
Total operating lease liability	$	118,952