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Leases | 12 Months Ended
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Dec. 31, 2017
Leases [Abstract] |
Leases |
12. | Leases
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 an initial 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 initial sale-leaseback financing liability is 2.22%. In June 2017, the Company amended the lease agreement. The amendment extended the lease through June of 2031 and changed the effective weighted average interest rate from the 2.22% to the 4.53%. As of December 31, 2017, future payments on the sale-leaseback financing liability are as follows (in thousands):
Fiscal Years |  | Payments |  |
2018 |  |  | 406 |  |
2019 |  |  | 414 |  |
2020 |  |  | 422 |  |
2021 |  |  | 431 |  |
2022 |  |  | 439 |  |
Thereafter |  |  | 4,106 |  |
Total payments |  |  | 6,218 |  |
Less amount representing interest |  |  | (1,635 | ) |
Total sale-leaseback financing liability |  |  | 4,583 |  |
Less current portion of sale-leaseback financing liability included in accounts payable and accrued expenses |  |  | (202 | ) |
Long-term portion of sale-leaseback financing liability included in other liabilities |  | $ | 4,381 |  |
As of December 31, 2017 and 2016, the net carrying value of the Denton facility assets that are included in property, plant, and equipment on our Consolidated Balance Sheets amounted to $11.0 million and $12.3 million, respectively. The useful life of these assets was modified to the remainder of the lease’s duration. 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 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%. Indianapolis Facility On August 16, 2016, the Company entered into an agreement to sell its manufacturing facility in Indianapolis, Indiana for gross proceeds of $3.3 million, less costs associated with the transaction of $0.1 million, or net proceeds of $3.2 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 $2.0 million recorded in the 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 $3.0 million for the facilities leased. The weighted-average effective interest rate of the capital lease was 3.25%. The future minimum payments for the Indianapolis and Telford capital leases that the Company entered into as of December 31, 2017, are as follows (in thousands):
Fiscal Years |  | Payments |  |
2018 |  | $ | 759 |  |
2019 |  |  | 774 |  |
2020 |  |  | 790 |  |
2021 |  |  | 805 |  |
2022 |  |  | 821 |  |
Thereafter |  |  | 5,756 |  |
Total payments |  |  | 9,705 |  |
Less amount representing interest |  |  | (1,705 | ) |
Present value of future minimum lease payments |  |  | 8,000 |  |
Less current portion of capital lease obligation included in accounts payable and accrued expenses |  |  | (501 | ) |
Long-term portion of capital lease obligation included in other liabilities |  | $ | 7,499 |  |
Prior to the execution of these transactions, the Company did not have any assets held under capital leases. Capital lease assets included in the Consolidated Balance Sheets as part of property, plant, and equipment as of December 31, 2017, are as follows (in thousands):
|  | December 31, 2017 |  |  | December 31, 2016 |  |  | Depreciable Life (Years) |
Building and improvements, net of deferred gain |  | $ | 4,385 |  |  | $ | 4,385 |  |  |  | 13 |
Less: Accumulated depreciation |  |  | (534 | ) |  |  | (197 | ) |  |  |  |
Total |  | $ | 3,851 |  |  | $ | 4,188 |  |  |  |  |
Rent We lease certain facilities on a year-to-year basis. We also have future annual minimum rental commitments under noncancelable operating leases as follows:
(Table only in thousands) December 31, |  | Commitment |
2018 |  | $ | 4,470 |
2019 |  |  | 3,197 |
2020 |  |  | 2,477 |
2021 |  |  | 2,228 |
2022 |  |  | 1,764 |
2023 and thereafter |  |  | 3,128 |
|  | $ | 17,264 |
Total rent expense under all operating leases for 2017, 2016 and 2015 was $4.2 million, $4.5 million and $4.0 million, respectively.

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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