Leases

6 Months Ended

Jun. 30, 2024

Note 8. Leases

We have operating and finance leases for our manufacturing facilities, warehouses, office space, automobiles, and certain equipment. Our leases have remaining lease terms of up to ten years, some of which may include one or more five-year renewal options. We have not included any of the renewal options in our operating lease payments as we concluded that it is not reasonably certain that we will exercise any of these renewal options. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Operating lease expense is recognized on a straight-line basis over the lease term. Finance leases are not material.

The following tables provide quantitative disclosures related to our operating leases and include all operating leases acquired from the date of acquisition (in thousands):

Balance Sheet Information	June 30, 2024				December 31, 2023
Assets
Operating lease right-of-use assets		$	99,121			$	100,065

Liabilities
Sundry payables and accrued expenses		$	17,212			$	17,139
Noncurrent operating lease liabilities			88,820				88,974
Total operating lease liabilities		$	106,032			$	106,113

Weighted Average Remaining Lease Term	8.1 Years				8.3 Years
Weighted Average Discount Rate			4.9	%			4.8	%

	Three Months Ended June 30,				Six Months Ended June 30,
Lease Expense	2024		2023		2024		2023
Lease expense	$	4,852	$	3,776	$	9,672	$	6,885
Variable and other lease expense (a)		628		511		1,408		1,283
Total lease costs	$	5,480	$	4,287	$	11,080	$	8,168

(a)	Variable and other lease expense relate to non-lease components such as maintenance, property taxes, etc., and operating lease expense for leases with an initial term of 12 months or less which are not material.

		Six Months Ended June 30,
		2024		2023
Supplemental Cash Flow Information
Cash paid for the amounts included in the measurement of lease liabilities	$	8,801	$	5,476
Right-of-use assets obtained in exchange for new lease obligations (a)	$	6,674	$	30,830

(a)

Includes $4.7 million of right-of-use assets related to the lease modification and extension for our manufacturing facility in Bialystok, Poland during the six months ended June 30, 2024, and $27.8 million of right-of-use assets related to the lease modification and extension for our distribution center and office in Lewisville, Texas during the six months ended June 30, 2023.

Minimum Lease Payments

At June 30, 2024, we are obligated to make minimum lease payments through 2034, under operating leases, which are as follows (in thousands):

2024	$	9,344
2025		16,919
2026		15,554
2027		14,317
2028		12,605
Thereafter		62,086
Total lease payments	$	130,825
Less: Interest		(24,793	)
Present value of lease liabilities	$	106,032