XML 32 R21.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Sale-leaseback Transactions | 6 Months Ended
--- | ---
Jun. 30, 2016
Leases [Abstract] |
Sale-leaseback Transactions |
15. | Sale-leaseback Transactions
Denton Facility On June 2, 2016, the Company entered into an agreement to sell its manufacturing facility in Denton, Texas for gross proceeds of $5.0 million, less costs associated with the transaction of $0.3 million, or net proceeds of $4.7 million. As a part of the transaction, the Company entered into a lease for the property from the purchaser for a period of 13 years. Prior to the consummation of the above transaction, the Company entered into a sublease agreement with a supplier of the Company at this facility for a period of five years. Due to the Company’s continuing involvement through the sublease agreement, the Company has accounted for the sale-leaseback as a financing liability. Payments made by the Company are allocated between interest expense and a reduction to the sale-leaseback financing liability. The weighted-average effective interest rate of the sale-leaseback financing liability was 2.22%. As of June 30, 2016, future payments on the sale-leaseback financing liability are as follows (in thousands):
Fiscal Years |  | Payments |  |
Remainder of 2016 |  | $ | 229 |  |
2017 |  |  | 399 |  |
2018 |  |  | 407 |  |
2019 |  |  | 415 |  |
2020 |  |  | 423 |  |
2021 |  |  | 431 |  |
Thereafter |  |  | 3,480 |  |
Total payments |  |  | 5,784 |  |
Less amount representing interest |  |  | (784 | ) |
Total sale-leaseback financing liability |  |  | 5,000 |  |
Less current portion of sale-leaseback financing liability included in accounts payable and accrued expenses |  |  | (287 | ) |
Long-term portion of sale-leaseback financing liability included in other liabilities |  | $ | 4,713 |  |
As of June 30, 2016 and December 31, 2015, the net carrying value of the Denton facility assets that are included in property, plant, and equipment on our condensed consolidated balance sheets amounted to $12.9 million and $13.1 million, respectively. The useful life of the asset was modified to the remainder of the lease’s duration. The Company concluded there was a triggering event that required an impairment test to be performed to support the assets’ carrying value as a result of the carrying value of the long-lived assets being in excess of the gross proceeds received as a result of the sale-leaseback transaction. An undiscounted cash flow analysis was performed and the sum of the undiscounted cash flows exceeded the long-lived assets’ carrying value. As a result of this analysis, no impairment was recorded during the second quarter of 2016. Telford Facility On June 2, 2016, the Company entered into an agreement to sell its manufacturing facility in Telford, Pennsylvania for gross proceeds of $6.0 million, less costs associated with the transaction of $0.4 million, or net proceeds of $5.6 million. As a part of the transaction, the Company entered into a lease for the property from the purchaser for a period of 13 years. The Company recorded a deferred gain on the sale of this facility in the amount of $2.4 million recorded in the Condensed Consolidated Balance Sheets as an offset to property, plant, and equipment, which will be recognized over the 13-year lease term. As a result of this transaction, the Company initially recorded a capital lease obligation of $5.7 million for the facilities leased. The weighted-average effective interest rate of the capital lease was 3.43%. The future minimum payments for the capital lease as of June 30, 2016, are as follows (in thousands):
Fiscal Years |  | Payments |  |
Remainder of 2016 |  | $ | 241 |  |
2017 |  |  | 487 |  |
2018 |  |  | 497 |  |
2019 |  |  | 507 |  |
2020 |  |  | 517 |  |
2021 |  |  | 527 |  |
Thereafter |  |  | 4,253 |  |
Total payments |  |  | 7,029 |  |
Less amount representing interest |  |  | (1,392 | ) |
Present value of future minimum lease payments |  |  | 5,637 |  |
Less current portion of capital lease obligation included in accounts payable and accrued expenses |  |  | (293 | ) |
Long-term portion of capital lease obligation included in other liabilities |  | $ | 5,344 |  |
Prior to the execution of this transaction, the Company did not have any assets held under capital leases. Capital lease assets included in the Condensed Consolidated Balance Sheets as part of property, plant, and equipment as of June 30, 2016, are as follows (in thousands):
|  | June 30, 2016 |  |  | Depreciable Life (Years) |
Building and improvements, net of deferred gain |  | $ | 3,296 |  |  |  | 13 |
Less: Accumulated depreciation |  |  | (36 | ) |  |  |  |
Total |  | $ | 3,260 |  |  |  |  |

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 sale leaseback transactions. Includes the elements of a transaction involving the sale of property to another party and the lease of the property back to the seller. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 40 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6456377&loc=d3e50824-112756 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6456341&loc=d3e50796-112755 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6452660&loc=d3e36991-112694 + Details
Name: | us-gaap_SaleLeasebackTransactionDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration