XML 22 R10.htm IDEA: XBRL DOCUMENT
v3.19.2

Leases | 6 Months Ended
--- | ---
Jun. 30, 2019
Leases [Abstract] |
Leases | Leases On January 1, 2019 we adopted ASC 842, “Leases” and the related amendments (“ASC 842”) using the modified retrospective transition method. Accordingly, the comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect to retained earnings of initially applying this standard was zero. In adopting ASC 842, we have not separated lease and non-lease components within our contracts and we have not recognized the impact of leases with terms of less than one year in the right of use asset (“ROUA”) and right of use liability (“ROUL”) balances recorded as part of the adoption of ASC 842. Furthermore, we elected the package of three practical expedients, which allowed us to not reassess whether expired or existing contracts contain leases, lease classification of existing leases, and whether previously capitalized initial direct costs would qualify for capitalization under Topic 842. We do not have any initial direct costs that were previously capitalized. As of June 30, 2019, our ROUA balance recorded in Leases-right of use assets as part of Non-current assets is $24.3 million, our ROUL balance recorded as part of Accrued and other current liabilities is $1.8 million and our ROUL balance recorded as part of noncurrent liabilities is $23.5 million. The undiscounted maturities of our operating lease liability balances are as follows (in millions):
Year | As of June 30, 2019 |
2019 | $ | 1.4 |
2020 | 0.4 |
2021 | 0.3 |
2022 | 0.1 |
2023 | 0.2 |
Thereafter | 39.9 |
Total | 42.3 |
Less: Interest | (17.0 | )
ROUL | $ | 25.3 |
We are a lessee in various agreements for the lease of office space, land, automobiles, and mobile equipment. All our leases are considered operating leases. The terms of our leases vary, including the lease term and the ability to renew or extend certain leases. As part of determining the lease term and potential extensions for purposes of calculating the ROUA and ROUL, we considered our historical practices related to renewal of certain leases. The weighted average remaining lease term for our operating leases as of June 30, 2019 is 14.4 years. Certain lease payment amounts are variable in nature and change periodically based on the local market consumer price index. We used our incremental borrowing rate as the basis for the discount rate used to calculate the ROUA and ROUL for our operating leases. The incremental borrowing rate was determined on a lease-by-lease basis and is based on the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term for an amount equal to our lease payments. We have considered the most likely financing options available for each lease based on the leased asset, legal entity party to the lease, economic environment in which the lease is denominated, the market conditions relative to the leased asset and our historical practices of obtaining financing for similar types of costs. The weighted average discount rate for our operating leases as of June 30, 2019 is 7.3%. Total operating lease expense for the three and six months ended June 30, 2019 was $2.3 million and $4.5 million, respectively, which includes short term lease expense of $1.1 million and $2.1 million, respectively. Total lease expense is included in cost of goods sold and selling, general, and administrative expenses on the Consolidated Statements of Operations. The full balance of operating lease expense is included in operating income on the Consolidated Statements of Operations. During the six months ended June 30, 2019, we had cash outflows of $2.0 million for amounts included in the ROUL balance at the beginning of the period related to our operating leases. During the six months ended June 30, 2019, we did not enter any material new lease agreements.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration