Leases

3 Months Ended

Mar. 31, 2023

We have operating leases for our corporate and division offices, production facilities, model homes, and certain office and production equipment. Additionally, we have finance leases for certain plant equipment and one of our production facilities which are recorded in homebuilding "Property, plant and equipment, net" and "Accrued expenses and other liabilities" on the accompanying condensed consolidated balance sheets. Our finance lease ROU assets and finance lease liabilities were $13,492 and $14,851, respectively, as of March 31, 2023, and $13,745 and $15,002, respectively, as of December 31, 2022. Our leases have remaining lease terms of up to 17.4 years, some of which include options to extend the lease for up to 20 years, and some of which include options to terminate the lease.

We recognize operating lease expense on a straight-line basis over the lease term. We have elected to use the portfolio approach for certain equipment leases which have similar lease terms and payment schedules. Additionally, for certain equipment we account for the lease and non-lease components as a single lease component. Our sublease income is de minimis.

We have certain leases, primarily the leases of model homes, which have initial lease terms of twelve months or less ("Short-term leases"). We elected to exclude these leases from the recognition requirements under Topic 842, and these leases have not been included in our recognized ROU assets and lease liabilities.

The components of lease expense were as follows:


	Three Months Ended March 31,
	2023		2022
Lease expense
Operating lease expense	$	9,140	$	8,101
Finance lease expense:
Amortization of ROU assets	502		464
Interest on lease liabilities	105		104
Short-term lease expense	7,492		6,332

Total lease expense	$	17,239	$	15,001

Other information related to leases was as follows:


	Three Months Ended March 31,
	2023			2022
Supplemental Cash Flows Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7,316		$	7,169
Operating cash flows from finance leases	105			104
Financing cash flows from finance leases	400			356

ROU assets obtained in exchange for lease obligations:
Operating leases	$	13,247		$	5,813
Finance leases	$	249		$	272


	March 31, 2023			December 31, 2022
Weighted-average remaining lease term (in years):
Operating leases	6.0			6.0
Finance leases	10.6			10.8

Weighted-average discount rate:
Operating leases	3.8		%	3.6		%
Finance leases	2.9		%	2.9		%

Leases

The components of lease expense were as follows:


	Three Months Ended March 31,
	2023		2022
Lease expense
Operating lease expense	$	9,140	$	8,101
Finance lease expense:
Amortization of ROU assets	502		464
Interest on lease liabilities	105		104
Short-term lease expense	7,492		6,332

Total lease expense	$	17,239	$	15,001

Other information related to leases was as follows:


	Three Months Ended March 31,
	2023			2022
Supplemental Cash Flows Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7,316		$	7,169
Operating cash flows from finance leases	105			104
Financing cash flows from finance leases	400			356

ROU assets obtained in exchange for lease obligations:
Operating leases	$	13,247		$	5,813
Finance leases	$	249		$	272


	March 31, 2023			December 31, 2022
Weighted-average remaining lease term (in years):
Operating leases	6.0			6.0
Finance leases	10.6			10.8

Weighted-average discount rate:
Operating leases	3.8		%	3.6		%
Finance leases	2.9		%	2.9		%