Leases (Notes)

9 Months Ended

Sep. 30, 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	September 30, 2023		December 31, 2022
Assets
Operating leases	Operating lease right-of-use assets	$	45,650	$	47,280
Finance leases	Property and equipment, net (a)	2,430		—
Total lease assets		$	48,080	$	47,280
Liabilities
Current:
Operating leases	Lease liabilities, current portion	$	8,310	$	8,280
Finance leases	Lease liabilities, current portion	470		—
Long-term:
Operating leases	Lease liabilities	39,400		41,010
Finance leases	Lease liabilities	1,750		—
Total lease liabilities		$	49,930	$	49,290

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(a)     Finance leases were recorded net of accumulated depreciation of $0.1 million as of September 30, 2023.

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

		Three months ended September 30,				Nine months ended September 30,
	Statement of Income Location	2023		2022		2023		2022
Operating lease cost	Cost of sales and Selling, general and administrative expenses	$	3,140	$	2,590	$	8,860	$	7,920
Finance lease cost:
Depreciation of lease assets	Cost of sales	50		—		150		—
Interest on lease liabilities	Interest expense	10		—		40		—
Short-term, variable and other lease costs	Cost of sales and Selling, general and administrative expenses	1,030		950		2,510		2,370
Total lease cost		$	4,230	$	3,540	$	11,560	$	10,290

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

Year ended December 31,	Operating Leases(a)		Finance Leases(a)
2023 (excluding the nine months ended September 30, 2023)	$	2,530	$	140
2024	9,540		520
2025	8,120		510
2026	8,570		590
2027	7,500		680
Thereafter	18,390		—
Total lease payments	54,650		2,440
Less: Imputed interest	(6,940)		(220)
Present value of lease liabilities	$	47,710	$	2,220

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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 September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,540	$	2,540	$	7,760	$	7,360
Operating cash flows from finance leases	10		—		40		—
Financing cash flows from finance leases	120		—		320		—
Lease assets obtained in exchange for new lease liabilities:
Operating leases	3,560		970		8,340		5,720
Finance leases	—		—		2,620		—

The weighted-average remaining lease term of the Company's operating leases and finance leases as of September 30, 2023 is 6.5 years and 3.75 years, respectively. The weighted-average discount rate for the operating leases and finance leases as of September 30, 2023 is 4.0% and 2.6%, respectively.