Leases (Notes)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

. LEASES

The Company's operating leases consist of rent commitments under various leases for office space, warehouses, land and buildings at varying dates from January 2023 to March 2028. The terms of most of these leases are in the range of 3 to 8 years, with certain leases renewable for varying periods. It is expected that in the normal course of business leases that expire will be renewed or replaced by leases on other similar property. Some of the Company's lease obligations have rent escalations or contingent rent that are recognized on a straight-line basis over the entire lease term. Material leasehold improvements and other landlord incentives are amortized over the shorter of their economic lives or the lease term, including renewal periods, if reasonably assured. Substantially all real estate taxes, insurance and maintenance expenses associated with leased facilities are obligations of the Company. The terms for most machinery and equipment leases range from 3 to 5 years.

The Company's finance leases are included in machinery, office furniture and equipment and construction in process and amortization of these assets is included in depreciation and amortization expense. The terms of these leases range from 3 to 5 years. At December 31, 2022 and 2021, $9.8 million and $6.7 million, respectively, of assets included in property, plant and equipment were accounted for as finance leases. At December 31, 2022 and 2021, the Company had accumulated depreciation of $3.2 million and $2.9 million, respectively, associated with these assets.

At the commencement date of a contract containing a lease, a right-of-use asset and lease liability are recorded to the Company's Consolidated Balance Sheets when the Company obtains control of the use of the asset. Right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make payments upon entering into a lease agreement.

20. LEASES (CONTINUED)

Right-of-use assets, net consisted of the following:

	Classification	December 31, 2022		December 31, 2021
In thousands
Assets
Operating lease right of use assets	Operating lease right-of-use assets, net	$	7,391	$	11,011
Finance lease right of use assets	Property, plant and equipment, net of accumulated depreciation	6,626		3,830
Total leased assets		$	14,017	$	14,841

The lease liability and future rental payments are required under leases that have initial or remaining non-cancellable lease terms in excess of one year as of December 31, 2022. Lease liabilities consisted of the following:

	Classification	December 31, 2022		December 31, 2021
In thousands
Liabilities
Current
Operating lease liability, current portion	Operating lease liabilities, current portion	$	3,332	$	4,502
Finance lease liability, current portion	Other current liabilities	1,756		1,697
Noncurrent
Operating lease liability, noncurrent portion	Operating lease liabilities, noncurrent portion	4,534		7,140
Finance lease liability, noncurrent portion	Other long-term liabilities	2,002		2,629
Total lease liabilities		$	11,624	$	15,968

20. LEASES (CONTINUED)

Future rental payments for continuing operations consisted of the following:

	December 31, 2022
In thousands
Operating leases
2023	$	3,525
2024	2,849
2025	996
2026	546
2027	316
Thereafter	41
Total future operating lease payments	$	8,273
Interest	(407)
Present value of future operating lease payments	$	7,866
Finance leases
2023	$	1,817
2024	1,208
2025	839
2026	—
2027	—
Thereafter	—
Total future finance lease payments	$	3,864
Interest	(106)
Present value of future finance lease payments	$	3,758
Present value of total future lease payments	$	11,624

The following table illustrates the components of lease expense for the Company's leases.

	For the year ended December 31,
	2022		2021		2020
In thousands
Finance lease cost
Amortization of right-of-use assets	$	894	$	758	880
Interest on lease liabilities	106		139		196
Operating lease cost	5,217		5,245		5465
Short-term lease cost	328		242		443
Variable lease cost	461		79		96
Total lease expense	$	7,006	$	6,463	$	7,080

The following table segregates cash paid for the Company's leases.

	For the year ended December 31,
	2022		2021		2020
In thousands
Operating cash flows from operating leases	$	(6,144)	$	(6,294)	(5,556)
Operating cash flows from finance leases	(1,830)		(2,028)		(1,533)
Financing cash flows from finance leases	(106)		(139)		(196)
Total cash flows from leasing activities	$	(8,080)	$	(8,461)	$	(7,285)

20. LEASES (CONTINUED)

During the year ended December 31, 2022, $1.8 million in right-of-use assets were obtained in exchange for new operating lease liabilities and $1.2 million right-of-use assets were obtained in exchange for new finance lease liabilities.

Other information related to leases is as follows:

	December 31, 2022
Weighted-average remaining lease term (years)
Operating leases	2.8
Finance leases	2.4
Weighted-average discount rate
Operating leases	3.7	%
Finance leases	2.7	%