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Leases

12 Months Ended

Dec. 31, 2023

The Company has operating and finance leases for service centers, warehouses, showrooms, and machinery and equipment. Certain of the Company’s leases include rental payments that will adjust periodically for inflation or certain adjustments based on step increases. An insignificant number of the Company’s leases contain residual value guarantees and none of the Company’s agreements contain material restrictive covenants.

The Company rents or subleases certain real estate to third parties. The Company’s sublease portfolio consists mainly of operating leases.

The components of lease costs for the twelve months ended December 31, 2023, 2022 and 2021, respectively, are as follows:


December 31, 2023	Cost of Goods Sold		Selling, General and Administrative Expenses	Total
Operating lease costs:
Fixed	$	29,968	109,704	139,672
Short-term	15,445		20,162	35,607
Variable	9,717		35,739	45,456
Sub-leases	(697)		(1,480)	(2,177)
Total operating lease costs	$	54,433	164,125	218,558

	Depreciation and Amortization		Interest	Total
Finance lease costs:
Amortization of leased assets	$	15,367	—	15,367
Interest on lease liabilities	—		1,962	1,962
Total finance lease costs	$	15,367	1,962	17,329
Total lease costs				$	235,887


December 31, 2022	Cost of Goods Sold		Selling, General and Administrative Expenses	Total
Operating lease costs:
Fixed	$	21,321	110,716	132,037
Short-term	17,005		19,154	36,159
Variable	7,689		35,985	43,674
Sub-leases	(691)		(1,652)	(2,343)
Total operating lease costs	$	45,324	164,203	209,527

	Depreciation and Amortization		Interest	Total
Finance lease costs:
Amortization of leased assets	$	11,108	—	11,108
Interest on lease liabilities	—		816	816
Total finance lease costs	$	11,108	816	11,924
Total lease costs				$	221,451


December 31, 2021	Cost of Goods Sold		Selling, General and Administrative Expenses	Total
Operating lease costs:
Fixed	$	20,130	104,651	124,781
Short-term	13,415		18,434	31,849
Variable	7,949		30,127	38,076
Sub-leases	(529)		(1,113)	(1,642)
Total operating lease costs	$	40,965	152,099	193,064

	Depreciation and Amortization		Interest	Total
Finance lease costs:
Amortization of leased assets	$	9,193	—	9,193
Interest on lease liabilities	—		772	772
Total finance lease costs	$	9,193	772	9,965
Total lease costs				$	203,029

Supplemental balance sheet information related to leases is as follows:


	Classification	December 31, 2023		December 31, 2022
Assets
Operating Leases:
ROU operating lease assets	ROU operating lease assets	$	428,532	387,816
Finance Leases:
Property, plant and equipment, gross	Property, plant and equipment	117,350		82,653
Accumulated depreciation	Accumulated depreciation	(45,967)		(30,218)
Property, plant and equipment, net	Property, plant and equipment, net	71,383		52,435
Total lease assets		$	499,915	440,251

Liabilities
Operating Leases:
Other current	Current operating lease liabilities	$	108,860	105,266
Non-current	Non-current operating lease liabilities	337,506		296,136
Total operating liabilities		446,366		401,402
Finance Leases:
Short-term debt	Short-term debt and current portion of long-term debt	16,132		11,765
Long-term debt	Long-term debt, less current portion	55,060		40,285
Total finance liabilities		71,192		52,050
Total lease liabilities		$	517,558	453,452

Maturities of lease liabilities as of December 31, 2023 are as follows:


Year Ending December 31,	Finance Leases		Operating Leases	Total
2024	$	18,226	134,031	152,257
2025	16,936		117,783	134,719
2026	14,306		96,534	110,840
2027	10,768		67,254	78,022
2028	7,244		43,615	50,859
Thereafter	10,092		38,469	48,561
Total lease payments	77,572		497,686	575,258
Less: imputed interest	6,380		51,320	57,700
Present value, Total	$	71,192	446,366	517,558

The Company had approximately $8,330 of leases that commenced after December 31, 2023 that created rights and obligations to the Company. These leases are not included in the above maturity schedule.

Lease term and discount rate are as follows:


	December 31, 2023		December 31, 2022
Weighted Average Remaining Lease Term:
Operating Leases	4.7 years		4.5 years
Finance Leases	5.5 years		6.2 years

Weighted Average Discount Rate:
Operating Leases	4.8	%	3.8	%
Finance Leases	3.1	%	1.5	%

Supplemental cash flow information related to leases was as follows:


	Twelve Months Ended
	December 31, 2023		December 31, 2022	December 31, 2021
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	135,249	129,895	122,886
Operating cash flows from finance leases	1,962		816	772
Financing cash flows from finance leases	14,574		10,770	9,289
ROU assets obtained in exchange for lease obligations:
Operating leases	160,836		119,115	186,605
Finance leases	31,642		16,160	13,395
Amortization:
Amortization of ROU operating lease assets (1)	120,393		120,666	115,650

(1) Amortization of ROU operating lease assets during the period is reflected in Other assets and prepaid expenses on the Consolidated Statements of Cash Flows.

Leases