Leases (Notes)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Lessee, Finance and Operating Leases

Leases

The majority of the Company's lease obligations are non-cancelable operating leases for certain equipment and facilities. The Company's finance leases are for certain equipment as part of the Company's acquisition of Aarts. Leases with an initial term of 12 months or less are not recorded on the balance sheet; expense related to these leases is recognized on a straight-line basis over the lease term.

Supplemental balance sheet information related to the Company's leases are shown below (dollars in thousands):

	Balance Sheet Location	March 31, 2023		December 31, 2022
Assets
Operating leases	Operating lease right-of-use assets	$	47,040	$	47,280
Finance leases	Property and equipment, net (a)	2,580		—
Total lease assets		$	49,620	$	47,280
Liabilities
Current:
Operating leases	Lease liabilities, current portion	$	8,550	$	8,280
Finance leases	Lease liabilities, current portion	490		—
Long-term:
Operating leases	Lease liabilities	40,150		41,010
Finance leases	Lease liabilities	2,040		—
Total lease liabilities		$	51,230	$	49,290

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(a)     Finance leases were recorded net of accumulated depreciation of $0.1 million as of March 31, 2023.

The components of lease expense are as follows (dollars in thousands):

		Three months ended March 31,
	Statement of Income Location	2023		2022
Operating lease cost	Cost of sales and Selling, general and administrative expenses	$	2,580	$	2,310
Finance lease cost:
Depreciation of lease assets	Cost of sales	40		—
Interest on lease liabilities	Interest expense	10		—
Short-term, variable and other lease costs	Cost of sales and Selling, general and administrative expenses	640		690
Total lease cost		$	3,270	$	3,000

Maturities of lease liabilities are as follows (dollars in thousands):

Year ended December 31,	Operating Leases(a)		Finance Leases(a)
2023 (excluding the three months ended March 31, 2023)	$	7,830	$	410
2024	9,610		530
2025	8,200		520
2026	7,920		600
2027	6,820		690
Thereafter	14,830		—
Total lease payments	55,210		2,750
Less: Imputed interest	(6,510)		(220)
Present value of lease liabilities	$	48,700	$	2,530

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(a)     The maturity table excludes cash flows associated with exited lease facilities. Liabilities for exited lease facilities are included in accrued liabilities and other long-term liabilities in the accompanying consolidated balance sheet.

Other information related to the Company's leases are as follows (dollars in thousands):

	Three months ended March 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,590	$	2,270
Operating cash flows from finance leases	10		—
Financing cash flows from finance leases	80		—
Lease assets obtained in exchange for new lease liabilities:
Operating leases	4,780		4,750
Finance leases	2,620		—

The weighted-average remaining lease term of the Company's operating leases and finance leases as of March 31, 2023 is 6.6 years and 4.3 years, respectively. The weighted-average discount rate for the operating leases and finance leases as of March 31, 2023 is 3.9% and 2.6%, respectively.