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LEASES
 9 Months Ended
Sep. 30, 2023
Leases [Abstract]  
LEASES LEASES
The Company has both real estate leases and equipment leases. The main types of equipment leases include forklifts, trailers, printers and copiers, railcars, and trucks. Leases are categorized as both operating leases and finance leases. The Company elected the practical expedient to combine lease and non-lease components and recognizes the combined amount on the condensed consolidated balance sheet. Management determined that since the Company has a centralized treasury function, the parent company would either fund or guarantee a subsidiary's loan for borrowing over a similar term. As such, the Company's management determined it is appropriate to utilize a corporate based borrowing rate for all locations. The Company developed four tranches of leases based on lease terms and these tranches reflect the composition of the current lease portfolio. The Company's borrowing history shows that interest rates of a term loan or a line of credit depend on the duration of the loan rather than the nature of the assets purchased by those funds. Based on this understanding, the Company elected to use a portfolio approach to discount rates, applying corporate rates to the tranches of leases based on lease terms. Based on the Company's risk rating, the Company applied the following discount rates for new leases entered into during the third quarter of 2023: (1) 1-2 years, 6.50% (2) 3-4 years, 7.09% (3) 5-9 years, 7.43% and (4) 10+ years, 8.15%.
Right of use assets and lease liabilities at September 30, 2023 and December 31, 2022 are summarized as follows:

Right of use assetsSeptember 30, 2023December 31, 2022
Operating leases$16,066 $17,094 
Finance leases2,155 2,338 
Total$18,221 $19,432 

Lease liabilities - currentSeptember 30, 2023December 31, 2022
Operating leases$3,584 $3,796 
Finance leases274 226 
Total$3,858 $4,022 

Lease liabilities - non-currentSeptember 30, 2023December 31, 2022
Operating leases$13,244 $13,806 
Finance leases1,995 2,213 
Total$15,239 $16,019 
For the three and nine months ended September 30, 2023 and 2022, the Company's total lease costs were as follows, which included amounts recognized in earnings, amounts capitalized on the balance sheets, and the cash flows arising from lease transactions:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2023202220232022
Lease Cost
Operating lease cost$1,326 $1,190 $3,972 $2,782 
Finance lease cost
Amortization of ROU asset61 53 181 157 
Interest on lease liabilities29 30 87 91 
Total finance lease90 83 268 248 
Total lease cost$1,416 $1,273 $4,240 $3,030 
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$1,232 $1,164 $3,441 $2,772 
Operating cash flows from finance leases29 30 87 91 
Financing cash flows from finance leases56 42 166 125 
$1,317 $1,236 $3,694 $2,988 
Right-of-use assets obtained in exchange for new operating lease liabilities, net of right-of-use assets disposed$1,110 $2,275 $3,715 $7,552 
Weighted-average remaining lease term - operating leases5.49 years3.83 years5.49 years3.83 years
Weighted-average remaining lease term - finance leases9.29 years10.65 years9.29 years10.65 years
Weighted-average discount rate - operating leases4.3 %2.9 %4.3 %2.9 %
Weighted-average discount rate - finance leases5.0 %5.1 %5.0 %5.1 %
Rent expense charged to operations under operating lease agreements for the three and nine months ended September 30, 2023 aggregated to approximately $1,326 and $3,972, respectively, and $1,190 and $2,782 for the three and nine months ended September 30, 2022, respectively.
Aggregate future minimum rental payments required under all non-cancelable operating and finance leases at September 30, 2023 are as follows:

Year 
October 1, 2023 to December 31, 2023$1,301 
20244,648 
20253,635 
20263,120 
20272,651 
20282,151 
Thereafter5,304 
Total minimum lease payments$22,810 
LEASES LEASES
The Company has both real estate leases and equipment leases. The main types of equipment leases include forklifts, trailers, printers and copiers, railcars, and trucks. Leases are categorized as both operating leases and finance leases. The Company elected the practical expedient to combine lease and non-lease components and recognizes the combined amount on the condensed consolidated balance sheet. Management determined that since the Company has a centralized treasury function, the parent company would either fund or guarantee a subsidiary's loan for borrowing over a similar term. As such, the Company's management determined it is appropriate to utilize a corporate based borrowing rate for all locations. The Company developed four tranches of leases based on lease terms and these tranches reflect the composition of the current lease portfolio. The Company's borrowing history shows that interest rates of a term loan or a line of credit depend on the duration of the loan rather than the nature of the assets purchased by those funds. Based on this understanding, the Company elected to use a portfolio approach to discount rates, applying corporate rates to the tranches of leases based on lease terms. Based on the Company's risk rating, the Company applied the following discount rates for new leases entered into during the third quarter of 2023: (1) 1-2 years, 6.50% (2) 3-4 years, 7.09% (3) 5-9 years, 7.43% and (4) 10+ years, 8.15%.
Right of use assets and lease liabilities at September 30, 2023 and December 31, 2022 are summarized as follows:

Right of use assetsSeptember 30, 2023December 31, 2022
Operating leases$16,066 $17,094 
Finance leases2,155 2,338 
Total$18,221 $19,432 

Lease liabilities - currentSeptember 30, 2023December 31, 2022
Operating leases$3,584 $3,796 
Finance leases274 226 
Total$3,858 $4,022 

Lease liabilities - non-currentSeptember 30, 2023December 31, 2022
Operating leases$13,244 $13,806 
Finance leases1,995 2,213 
Total$15,239 $16,019 
For the three and nine months ended September 30, 2023 and 2022, the Company's total lease costs were as follows, which included amounts recognized in earnings, amounts capitalized on the balance sheets, and the cash flows arising from lease transactions:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2023202220232022
Lease Cost
Operating lease cost$1,326 $1,190 $3,972 $2,782 
Finance lease cost
Amortization of ROU asset61 53 181 157 
Interest on lease liabilities29 30 87 91 
Total finance lease90 83 268 248 
Total lease cost$1,416 $1,273 $4,240 $3,030 
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$1,232 $1,164 $3,441 $2,772 
Operating cash flows from finance leases29 30 87 91 
Financing cash flows from finance leases56 42 166 125 
$1,317 $1,236 $3,694 $2,988 
Right-of-use assets obtained in exchange for new operating lease liabilities, net of right-of-use assets disposed$1,110 $2,275 $3,715 $7,552 
Weighted-average remaining lease term - operating leases5.49 years3.83 years5.49 years3.83 years
Weighted-average remaining lease term - finance leases9.29 years10.65 years9.29 years10.65 years
Weighted-average discount rate - operating leases4.3 %2.9 %4.3 %2.9 %
Weighted-average discount rate - finance leases5.0 %5.1 %5.0 %5.1 %
Rent expense charged to operations under operating lease agreements for the three and nine months ended September 30, 2023 aggregated to approximately $1,326 and $3,972, respectively, and $1,190 and $2,782 for the three and nine months ended September 30, 2022, respectively.
Aggregate future minimum rental payments required under all non-cancelable operating and finance leases at September 30, 2023 are as follows:

Year 
October 1, 2023 to December 31, 2023$1,301 
20244,648 
20253,635 
20263,120 
20272,651 
20282,151 
Thereafter5,304 
Total minimum lease payments$22,810