| 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 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 $44 million, $42 million, and $42 million for the years ended December 31, 2023, 2022, and 2021, 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, 2023 | | December 31, 2022 | | Operating lease cost | $ | 44,322 | | | $ | 42,125 | | | | | | | Finance lease cost: | | | | | Depreciation of finance leases | $ | 1,037 | | | $ | 1,037 | | | Interest on lease liabilities | 347 | | | 390 | | | Total finance lease cost | $ | 1,384 | | | $ | 1,427 | |
Supplemental cash flow information related to leases was as follows: | | | | | | | | | | | | | Year Ended | | (In thousands) | December 31, 2023 | | December 31, 2022 | | Cash used for operating activities: | | | | | Operating cash flows used for operating leases | $ | (36,294) | | | $ | (34,186) | | | Operating cash flows used for finance leases | (347) | | | (390) | | | Non-cash activity: | | | | | Right-of-use assets obtained in exchange for operating lease obligations | $ | 14,361 | | | $ | 17,740 | |
Supplemental balance sheet information related to leases was as follows: | | | | | | | | | | | | | As of December 31, | | (In thousands, except lease term and discount rate) | 2023 | | 2022 | | Operating Leases | | | | | Operating lease right-of-use assets, net | $ | 141,435 | | | $ | 153,855 | | | | | | | Other current liabilities | $ | 30,629 | | | $ | 29,910 | | | Long-term operating lease liability | 118,611 | | | 132,275 | | | Total operating lease liabilities | $ | 149,240 | | | $ | 162,185 | | | | | | | Finance Leases | | | | | Property, plant, and equipment | $ | 15,561 | | | $ | 15,561 | | | Accumulated depreciation | (9,682) | | | (8,645) | | | Property, plant, and equipment, net | $ | 5,879 | | | $ | 6,916 | | | | | | | Other current liabilities | $ | 1,181 | | | $ | 1,098 | | | Other liabilities | 6,742 | | | 7,924 | | | Total finance lease liabilities | $ | 7,923 | | | $ | 9,022 | | | | | | | Weighted average remaining lease term | | | | | Operating leases | 7.2 years | | 7.5 years | | Finance leases | 5.7 years | | 6.7 years | | Weighted average discount rate | | | | | Operating leases | 3.99 | % | | 3.80 | % | | Finance leases | 4.05 | % | | 4.05 | % |
Maturities of lease liabilities were as follows: | | | | | | | | | | As of December 31, 2023 | | (In thousands) | Operating Leases | Finance Leases | | 2024 | $ | 35,623 | | $ | 1,481 | | | 2025 | 29,043 | | 1,518 | | | 2026 | 24,115 | | 1,556 | | | 2027 | 18,438 | | 1,595 | | | 2028 | 15,429 | | 1,635 | | | Thereafter | 49,883 | | 1,107 | | | Total lease payments | 172,531 | | 8,892 | | | Less: imputed interest | (23,291) | | (969) | | | Total | $ | 149,240 | | $ | 7,923 | |
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| 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 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 $44 million, $42 million, and $42 million for the years ended December 31, 2023, 2022, and 2021, 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, 2023 | | December 31, 2022 | | Operating lease cost | $ | 44,322 | | | $ | 42,125 | | | | | | | Finance lease cost: | | | | | Depreciation of finance leases | $ | 1,037 | | | $ | 1,037 | | | Interest on lease liabilities | 347 | | | 390 | | | Total finance lease cost | $ | 1,384 | | | $ | 1,427 | |
Supplemental cash flow information related to leases was as follows: | | | | | | | | | | | | | Year Ended | | (In thousands) | December 31, 2023 | | December 31, 2022 | | Cash used for operating activities: | | | | | Operating cash flows used for operating leases | $ | (36,294) | | | $ | (34,186) | | | Operating cash flows used for finance leases | (347) | | | (390) | | | Non-cash activity: | | | | | Right-of-use assets obtained in exchange for operating lease obligations | $ | 14,361 | | | $ | 17,740 | |
Supplemental balance sheet information related to leases was as follows: | | | | | | | | | | | | | As of December 31, | | (In thousands, except lease term and discount rate) | 2023 | | 2022 | | Operating Leases | | | | | Operating lease right-of-use assets, net | $ | 141,435 | | | $ | 153,855 | | | | | | | Other current liabilities | $ | 30,629 | | | $ | 29,910 | | | Long-term operating lease liability | 118,611 | | | 132,275 | | | Total operating lease liabilities | $ | 149,240 | | | $ | 162,185 | | | | | | | Finance Leases | | | | | Property, plant, and equipment | $ | 15,561 | | | $ | 15,561 | | | Accumulated depreciation | (9,682) | | | (8,645) | | | Property, plant, and equipment, net | $ | 5,879 | | | $ | 6,916 | | | | | | | Other current liabilities | $ | 1,181 | | | $ | 1,098 | | | Other liabilities | 6,742 | | | 7,924 | | | Total finance lease liabilities | $ | 7,923 | | | $ | 9,022 | | | | | | | Weighted average remaining lease term | | | | | Operating leases | 7.2 years | | 7.5 years | | Finance leases | 5.7 years | | 6.7 years | | Weighted average discount rate | | | | | Operating leases | 3.99 | % | | 3.80 | % | | Finance leases | 4.05 | % | | 4.05 | % |
Maturities of lease liabilities were as follows: | | | | | | | | | | As of December 31, 2023 | | (In thousands) | Operating Leases | Finance Leases | | 2024 | $ | 35,623 | | $ | 1,481 | | | 2025 | 29,043 | | 1,518 | | | 2026 | 24,115 | | 1,556 | | | 2027 | 18,438 | | 1,595 | | | 2028 | 15,429 | | 1,635 | | | Thereafter | 49,883 | | 1,107 | | | Total lease payments | 172,531 | | 8,892 | | | Less: imputed interest | (23,291) | | (969) | | | Total | $ | 149,240 | | $ | 7,923 | |
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