Leases

12 Months Ended

Dec. 31, 2023

5. Leases

The Company leases certain office space, warehouses, land, and equipment under operating lease arrangements. Some of the Company’s leases include options to extend the leases for up to an additional five years. Some of the Company’s lease agreements also include rental payments that are adjusted periodically for inflation (i.e., CPI index).

The Company recorded operating lease expense, which includes short-term lease expense and variable lease costs, of $11.9 million, $11.3 million, and $9.6 million during the years ended December 31, 2023, 2022, and 2021, respectively.

For the years ended December 31, 2023, 2022, and 2021, the Company paid $10.3 million, $9.3 million, and $8.2 million, respectively, in cash for operating leases, not including short-term lease expense or variable lease costs. The Company entered into operating leases that resulted in $9.0 million, $17.2 million, and $9.8 million of right-of-use assets in exchange for operating lease obligations for the years ended December 31, 2023, 2022, and 2021, respectively.

The Company included $36.3 million of right-of-use assets in Other Assets and $28.0 million of operating lease liabilities in Other Liabilities on the Company’s Consolidated Balance Sheets as of both December 31, 2023 and 2022. The Company included $8.6 million and $8.2 million of operating lease liabilities in Other Accrued Expenses on the Company’s Consolidated Balance Sheets as of December 31, 2023 and 2022, respectively.

The Company’s weighted average remaining operating lease term was 7.6 years as of December 31, 2023. The Company’s weighted average discount rate for operating leases was 4.17% as of December 31, 2023.

As of December 31, 2023, maturities of operating lease liabilities for future annual periods are as follows:

(In thousands)
Year ending December 31,
2024	$	10,023
2025		6,207
2026		4,801
2027		4,151
2028		3,236
Thereafter		14,932
Total lease payments		43,350
Less imputed interest		(6,762	)
Present value of lease liabilities	$	36,588