LEASES

6 Months Ended

Jun. 30, 2023

LEASES

LEASES

3. LEASES

The Company leases identified assets consisting primarily of office and warehouse space, warehouse equipment and vehicles. Leases are classified as either finance leases or operating leases based on criteria in ASC 842, “Leases”. The Company’s leases have remaining lease terms of less than one year to 11 years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year.

The components of lease cost were as follows:

	Three-Months Ended June 30,				Six-Months Ended June 30,
	2023		2022		2023		2022
Operating lease cost	$	2,616	$	2,238	$	5,083	$	3,932
Short-term lease cost		1,070		939		2,049		1,869
Variable lease cost		226		195		441		378
Finance leases:
Amortization of right-of-use assets		202		148		325		275
Interest on lease liabilities		44		7		58		10
Finance lease cost		246		155		383		285
Total lease cost	$	4,158	$	3,527	$	7,956	$	6,464

Supplemental cash flow information related to leases was as follows:

	Six-Months Ended June 30,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	4,818	$	3,682
Operating cash outflows from finance leases		58		10
Financing cash outflows from finance leases		1,683		1,179
Right-of-use assets obtained in exchange for lease obligations:
Finance leases		5,115		1,561
Operating leases		1,847		18,339

Supplemental balance sheet information related to leases was as follows:

		June 30,		December 31,
	Balance Sheet Location	2023		2022
Operating leases:
Right-of-use assets	Other assets	$	37,111	$	38,012
Current lease liabilities	Accrued liabilities	$	7,835	$	7,747
Noncurrent lease liabilities	Other liabilities		28,829		29,586
Total operating lease liabilities		$	36,664	$	37,333
Finance leases:
Right-of-use assets	Property and equipment, net	$	5,335	$	1,598
Current lease liabilities	Accrued liabilities	$	4,205	$	757
Noncurrent lease liabilities	Other liabilities		29		41
Total finance lease liabilities		$	4,234	$	798

Weighted-average remaining lease term and weighted-average discount rate for the Company’s leases were as follows:

	June 30, 2023		December 31, 2022
Weighted-average remaining lease term in years:
Operating leases	6.5		6.7
Finance leases	0.8		0.8
Weighted-average discount rate:
Operating leases	3.6	%	3.4	%
Finance leases	5.9	%	3.6	%

The following table outlines maturities of the Company’s lease liabilities as of June 30, 2023:

	Operating Leases		Finance Leases
2023 (from July 1, 2023 to December 31, 2023)	$	4,592	$	2,711
2024		8,089		1,620
2025		5,962		17
2026		4,780		2
2027		4,650		—
2028 and thereafter		13,183		—
Total lease payments		41,256		4,350
Less imputed interest		(4,592)		(116)
Total	$	36,664	$	4,234

As of June 30, 2023, the Company did not have any significant additional leases that had not yet commenced.