Leases

6 Months Ended

Jun. 30, 2021

The Company leases certain office facilities, warehouses, manufacturing plants, equipment (which includes both office and plant equipment) and vehicles under operating leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term.

Certain leases include one or more options to renew. The exercise of lease renewal options is at the Company’s sole discretion. The Company does not include renewal periods in any of the leases’ terms until the renewal is executed as they are generally not reasonably certain of being exercised. The Company does not have any material purchase options.

Certain of the Company’s lease agreements have rental payments that are adjusted periodically for inflation or that are based on usage. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Supplemental balance sheet information related to leases as of June 30, 2021 and December 31, 2020 was as follows:


	Balance Sheet Caption	June 30, 2021		December 31, 2020
Operating leases:
Building right-of-use assets - net	Other noncurrent assets	$	98,716	$	100,775
Equipment right-of-use assets - net	Other noncurrent assets	5,953		5,811
Total right-of-use assets - net		$	104,669	$	106,586
Operating leases:
Current lease liabilities	Accrued expenses	$	16,368	$	16,721
Noncurrent lease liabilities	Other noncurrent liabilities	91,950		94,250
Total lease liabilities		$	108,318	$	110,971

The components of lease cost for the three and six months ended June 30, 2021 and 2020 were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Operating lease cost (1)	$	7,061	$	5,986	$	14,496	$	12,314
Variable lease cost	594		313		1,173		954
Total lease expense	$	7,655	$	6,299	$	15,669	$	13,268

(1) Includes short-term leases, which are immaterial.

Supplemental cash flow information related to leases for the six months ended June 30, 2021 and 2020 was as follows:


	Six Months Ended June 30,
	2021		2020
Cash paid for amounts included in the measurement of operating lease liabilities	$	13,646	$	12,225
Right-of-use assets obtained in exchange for new operating lease liabilities	6,179		34,298

Other supplemental information related to leases as of June 30, 2021 and December 31, 2020 was as follows:


Lease Term and Discount Rate	June 30, 2021		December 31, 2020
Weighted-average remaining lease term (years):
Operating leases - building and equipment	9.07		9.43
Operating leases - vehicles	2.24		2.01
Weighted-average discount rate:
Operating leases - building and equipment	3.42	%	3.51	%
Operating leases - vehicles	1.48	%	2.05	%

The Company uses its incremental borrowing rate to determine the present value of the lease payments.

Total lease liabilities at June 30, 2021 have scheduled maturities as follows:


Maturity of Lease Liabilities	Operating Leases
2021 (excluding the six months ended June 30, 2021)	$	9,525
2022	18,061
2023	16,072
2024	12,902
2025	11,669
Thereafter	58,104
Total lease payments	126,333
Less: Imputed interest	(18,015)
Present value of lease liabilities	$	108,318

Total lease liabilities at December 31, 2020 had scheduled maturities as follows:


Maturity of Lease Liabilities	Operating Leases
2021	$	19,717
2022	17,014
2023	13,662
2024	11,681
2025	11,141
Thereafter	57,570
Total lease payments	130,785
Less: Imputed interest	(19,814)
Present value of lease liabilities	$	110,971