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Leases
6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Leases LeasesWe 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 $13,231 and $14,690, respectively, as of June 30, 2023, and $13,745 and $15,002, respectively, as of December 31, 2022. Our leases have remaining lease terms of up to 17.2 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 June 30,Six Months Ended June 30,
2023202220232022
Lease expense
Operating lease expense$9,475 $8,529 $18,615 $16,630 
Finance lease expense:
Amortization of ROU assets511 473 1,013 937 
Interest on lease liabilities105 103 211 207 
Short-term lease expense7,531 6,491 15,023 12,823 
Total lease expense$17,622 $15,596 $34,862 $30,597 
Other information related to leases was as follows:
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Supplemental Cash Flows Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$7,420 $6,935 $14,736 $14,104 
Operating cash flows from finance leases105 103 211 207 
Financing cash flows from finance leases411 367 811 723 
ROU assets obtained in exchange for lease obligations:
Operating leases$10,090 $18,073 $23,337 $23,886 
Finance leases$250 $451 $499 $723 
June 30, 2023December 31, 2022
Weighted-average remaining lease term (in years):
Operating leases5.96.0
Finance leases10.410.8
Weighted-average discount rate:
Operating leases4.0 %3.6 %
Finance leases3.0 %2.9 %
Leases LeasesWe 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 $13,231 and $14,690, respectively, as of June 30, 2023, and $13,745 and $15,002, respectively, as of December 31, 2022. Our leases have remaining lease terms of up to 17.2 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 June 30,Six Months Ended June 30,
2023202220232022
Lease expense
Operating lease expense$9,475 $8,529 $18,615 $16,630 
Finance lease expense:
Amortization of ROU assets511 473 1,013 937 
Interest on lease liabilities105 103 211 207 
Short-term lease expense7,531 6,491 15,023 12,823 
Total lease expense$17,622 $15,596 $34,862 $30,597 
Other information related to leases was as follows:
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Supplemental Cash Flows Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$7,420 $6,935 $14,736 $14,104 
Operating cash flows from finance leases105 103 211 207 
Financing cash flows from finance leases411 367 811 723 
ROU assets obtained in exchange for lease obligations:
Operating leases$10,090 $18,073 $23,337 $23,886 
Finance leases$250 $451 $499 $723 
June 30, 2023December 31, 2022
Weighted-average remaining lease term (in years):
Operating leases5.96.0
Finance leases10.410.8
Weighted-average discount rate:
Operating leases4.0 %3.6 %
Finance leases3.0 %2.9 %