XML 36 R19.htm IDEA: XBRL DOCUMENT v3.20.4
LEASES
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases, Operating
10. LEASES

The Corporation conducts a portion of its operations from leased facilities, which include manufacturing and service facilities, administrative offices, and warehouses. In addition, the Corporation leases vehicles, machinery, and office equipment under operating leases. Our leases have remaining lease terms ranging from approximately 1 year to 15 years, some of which include options for renewals, escalations, or terminations. Rental expenses for all operating leases amounted to $41.0 million, $37.2 million, and $38.4 million for the years ended December 31, 2020, 2019, and 2018, respectively.

Generally, the Corporation's lease contracts do not provide a readily determinable interest rate. Accordingly, the Corporation determines the incremental borrowing rate as of the lease commencement date in order to calculate the present value of its lease payments. The incremental borrowing rate is determined based on information available at the lease commencement date, including the lease term, market rates for the Corporation’s outstanding debt, as well as market rates for debt of companies with similar credit ratings.

The components of lease expense were as follows:
Year Ended
(In thousands)December 31, 2020December 31, 2019
Operating lease cost $40,961 $37,229 
Finance lease cost:
Depreciation of finance leases$1,037 $812 
Interest on lease liabilities 468 498 
Total finance lease cost$1,505 $1,310 

Supplemental cash flow information related to leases was as follows:
Year Ended
(In thousands)December 31, 2020December 31, 2019
Cash used for operating activities:
Operating cash flows used for operating leases$(33,842)$(30,665)
Operating cash flows used for finance leases(468)(498)
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations$8,714 $36,033 

Supplemental balance sheet information related to leases was as follows:
As of December 31,
(In thousands, except lease term and discount rate)20202019
Operating Leases
Operating lease right-of-use assets, net$150,898 $165,490 
Other current liabilities$27,263 $26,773 
Long-term operating lease liability133,069 145,124 
Total operating lease liabilities$160,332 $171,897 
Finance Leases
Property, plant, and equipment$15,561 $15,561 
Accumulated depreciation(6,570)(5,533)
Property, plant, and equipment, net$8,991 $10,028 
Other current liabilities$945 $807 
Other liabilities10,041 10,982 
Total finance lease liabilities$10,986 $11,789 
Weighted average remaining lease term
Operating leases8.6 years9.2 years
Finance leases8.7 years9.7 years
Weighted average discount rate
Operating leases3.67 %3.75 %
Finance leases4.05 %4.05 %

Maturities of lease liabilities were as follows:
As of December 31, 2020
(In thousands)Operating LeasesFinance Leases
2021$33,630 $1,375 
202227,451 1,410 
202324,532 1,445 
202421,515 1,481 
202515,075 1,518 
Thereafter68,375 5,893 
Total lease payments190,578 13,122 
Less: imputed interest(30,246)(2,136)
Total$160,332 $10,986 
Leases, Finance
10. LEASES

The Corporation conducts a portion of its operations from leased facilities, which include manufacturing and service facilities, administrative offices, and warehouses. In addition, the Corporation leases vehicles, machinery, and office equipment under operating leases. Our leases have remaining lease terms ranging from approximately 1 year to 15 years, some of which include options for renewals, escalations, or terminations. Rental expenses for all operating leases amounted to $41.0 million, $37.2 million, and $38.4 million for the years ended December 31, 2020, 2019, and 2018, respectively.

Generally, the Corporation's lease contracts do not provide a readily determinable interest rate. Accordingly, the Corporation determines the incremental borrowing rate as of the lease commencement date in order to calculate the present value of its lease payments. The incremental borrowing rate is determined based on information available at the lease commencement date, including the lease term, market rates for the Corporation’s outstanding debt, as well as market rates for debt of companies with similar credit ratings.

The components of lease expense were as follows:
Year Ended
(In thousands)December 31, 2020December 31, 2019
Operating lease cost $40,961 $37,229 
Finance lease cost:
Depreciation of finance leases$1,037 $812 
Interest on lease liabilities 468 498 
Total finance lease cost$1,505 $1,310 

Supplemental cash flow information related to leases was as follows:
Year Ended
(In thousands)December 31, 2020December 31, 2019
Cash used for operating activities:
Operating cash flows used for operating leases$(33,842)$(30,665)
Operating cash flows used for finance leases(468)(498)
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations$8,714 $36,033 

Supplemental balance sheet information related to leases was as follows:
As of December 31,
(In thousands, except lease term and discount rate)20202019
Operating Leases
Operating lease right-of-use assets, net$150,898 $165,490 
Other current liabilities$27,263 $26,773 
Long-term operating lease liability133,069 145,124 
Total operating lease liabilities$160,332 $171,897 
Finance Leases
Property, plant, and equipment$15,561 $15,561 
Accumulated depreciation(6,570)(5,533)
Property, plant, and equipment, net$8,991 $10,028 
Other current liabilities$945 $807 
Other liabilities10,041 10,982 
Total finance lease liabilities$10,986 $11,789 
Weighted average remaining lease term
Operating leases8.6 years9.2 years
Finance leases8.7 years9.7 years
Weighted average discount rate
Operating leases3.67 %3.75 %
Finance leases4.05 %4.05 %

Maturities of lease liabilities were as follows:
As of December 31, 2020
(In thousands)Operating LeasesFinance Leases
2021$33,630 $1,375 
202227,451 1,410 
202324,532 1,445 
202421,515 1,481 
202515,075 1,518 
Thereafter68,375 5,893 
Total lease payments190,578 13,122 
Less: imputed interest(30,246)(2,136)
Total$160,332 $10,986