LEASES

12 Months Ended

Dec. 31, 2021

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 $42 million, $41 million, and $37 million for the years ended December 31, 2021, 2020, and 2019, 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, 2021		December 31, 2020
Operating lease cost	$	41,663	$	40,961
Finance lease cost:
Depreciation of finance leases	$	1,037	$	1,037
Interest on lease liabilities	431		468
Total finance lease cost	$	1,468	$	1,505

Supplemental cash flow information related to leases was as follows:

	Year Ended
(In thousands)	December 31, 2021		December 31, 2020
Cash used for operating activities:
Operating cash flows used for operating leases	$	(33,352)	$	(33,842)
Operating cash flows used for finance leases	(431)		(468)
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations	$	9,040	$	8,714

Supplemental balance sheet information related to leases was as follows:

	As of December 31,
(In thousands, except lease term and discount rate)	2021			2020
Operating Leases
Operating lease right-of-use assets, net	$	143,613		$	150,898
Other current liabilities	$	25,389		$	27,263
Long-term operating lease liability	127,152			133,069
Total operating lease liabilities	$	152,541		$	160,332
Finance Leases
Property, plant, and equipment	$	15,561		$	15,561
Accumulated depreciation	(7,608)			(6,570)
Property, plant, and equipment, net	$	7,953		$	8,991
Other current liabilities	$	1,019		$	945
Other liabilities	9,022			10,041
Total finance lease liabilities	$	10,041		$	10,986
Weighted average remaining lease term
Operating leases	8.3 years			8.6 years
Finance leases	7.7 years			8.7 years
Weighted average discount rate
Operating leases	3.51		%	3.67		%
Finance leases	4.05		%	4.05		%

Maturities of lease liabilities were as follows:

	As of December 31, 2021
(In thousands)	Operating Leases		Finance Leases
2022	$	31,698	$	1,410
2023	29,037		1,445
2024	26,166		1,481
2025	19,811		1,518
2026	16,161		1,556
Thereafter	63,723		4,337
Total lease payments	186,596		11,747
Less: imputed interest	(34,055)		(1,706)
Total	$	152,541	$	10,041

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 $42 million, $41 million, and $37 million for the years ended December 31, 2021, 2020, and 2019, 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, 2021		December 31, 2020
Operating lease cost	$	41,663	$	40,961
Finance lease cost:
Depreciation of finance leases	$	1,037	$	1,037
Interest on lease liabilities	431		468
Total finance lease cost	$	1,468	$	1,505

Supplemental cash flow information related to leases was as follows:

	Year Ended
(In thousands)	December 31, 2021		December 31, 2020
Cash used for operating activities:
Operating cash flows used for operating leases	$	(33,352)	$	(33,842)
Operating cash flows used for finance leases	(431)		(468)
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations	$	9,040	$	8,714

Supplemental balance sheet information related to leases was as follows:

	As of December 31,
(In thousands, except lease term and discount rate)	2021			2020
Operating Leases
Operating lease right-of-use assets, net	$	143,613		$	150,898
Other current liabilities	$	25,389		$	27,263
Long-term operating lease liability	127,152			133,069
Total operating lease liabilities	$	152,541		$	160,332
Finance Leases
Property, plant, and equipment	$	15,561		$	15,561
Accumulated depreciation	(7,608)			(6,570)
Property, plant, and equipment, net	$	7,953		$	8,991
Other current liabilities	$	1,019		$	945
Other liabilities	9,022			10,041
Total finance lease liabilities	$	10,041		$	10,986
Weighted average remaining lease term
Operating leases	8.3 years			8.6 years
Finance leases	7.7 years			8.7 years
Weighted average discount rate
Operating leases	3.51		%	3.67		%
Finance leases	4.05		%	4.05		%

Maturities of lease liabilities were as follows:

	As of December 31, 2021
(In thousands)	Operating Leases		Finance Leases
2022	$	31,698	$	1,410
2023	29,037		1,445
2024	26,166		1,481
2025	19,811		1,518
2026	16,161		1,556
Thereafter	63,723		4,337
Total lease payments	186,596		11,747
Less: imputed interest	(34,055)		(1,706)
Total	$	152,541	$	10,041