LEASES

12 Months Ended

Dec. 31, 2023

The Company has operating leases for railcars, computer equipment, office spaces, a bottling facility, a distribution facility, fulfillment center, retail location, and certain equipment. The Company has no finance leases. Leases with terms of twelve months or less are not recorded on the Company’s Consolidated Balance Sheets. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Lease components are accounted for separately from non-lease components, such as common-area maintenance, based on the relative, observable stand-alone prices of the components.

The Company’s leases have remaining lease terms of less than one year to ten years, some of which may include options to extend the lease. Options to renew the Company’s leases were not considered when assessing the value of the right-of-use assets because the Company is not reasonably certain that it will assert the options to renew the leases. As most of the Company’s leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

The following table provides supplemental balance sheet classification information related to leases:


		December 31,
Leases	Balance Sheet Classification	2023		2022
Assets
Operating	Operating lease right-of-use-assets, net	$	13,975	$	15,042
Total leased assets		$	13,975	$	15,042

Liabilities
Current Operating	Accrued expenses	$	3,318	$	3,807
Noncurrent Operating	Long-term operating lease liabilities	11,292		11,622
Total operating lease liability		$	14,610	$	15,429

The following table presents the components of lease costs:


	Year Ended December 31,
	2023		2022
Operating lease costs	$	4,364	$	4,278
Short-term lease costs	446		415

Net lease costs(a)	$	4,810	$	4,693

(a) Recorded as a component of operating income on the Company’s Consolidated Statements of Income.

The following table presents supplemental cash flow and non-cash activity related to lease information:


	Year Ended December 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	4,116	$	4,082

Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	4,100	$	3,417

The following table presents weighted average discount rate and remaining lease term:



	December 31,
	2023		2022
Weighted average discount rate
Operating leases	2.95	%	2.03	%

Weighted average remaining lease term
Operating leases	5.1 years		4.6 years

As of December 31, 2023, the future payments under operating leases having initial terms of one year or more were as follows:


2024	$	3,702
2025	3,638
2026	3,032
2027	2,094
2028	1,463
Thereafter	2,163
Total lease payments	16,092
Less interest	(1,482)
Total operating lease liability	$	14,610