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v3.22.2.2

Leases | 9 Months Ended
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Sep. 30, 2022
Leases [Abstract] |
Leases | Leases Amortization expense related to our finance lease right-of-use assets, which is primarily included in the “Cost of sales” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and nine-month periods ended September 30, 2022 and 2021. Interest expense related to our finance lease obligations, which is included in the “Interest expense, net” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and nine-month periods ended September 30, 2022 and 2021. Payments made on the principal portion of our finance lease obligations were immaterial for each of the three- and nine-month periods ended September 30, 2022 and 2021, excluding the $5.0 million net cash payment to exercise the Eschenbach, Germany manufacturing facility purchase option. We have operating leases primarily related to building space and vehicles. Renewal options are included in the lease term to the extent we are reasonably certain to exercise the option. The exercise of lease renewal options is at our sole discretion. We account for lease components separately from non-lease components. The incremental borrowing rate represents our ability to borrow on a collateralized basis over a similar lease term. Our expenses and payments for operating leases were as follows:
| Three Months Ended |  | Nine Months Ended
(Dollars in thousands) | September 30, 2022 |  | September 30, 2021 |  | September 30, 2022 |  | September 30, 2021
Operating leases expense | $ | 652 |  |  | $ | 594 |  |  | $ | 1,896 |  |  | $ | 2,054 |
Short-term leases expense | $ | 168 |  |  | $ | 97 |  |  | $ | 420 |  |  | $ | 227 |
Payments on operating lease obligations | $ | 663 |  |  | $ | 610 |  |  | $ | 2,231 |  |  | $ | 1,945 |
Our assets and liabilities balances related to finance and operating leases reflected in the condensed consolidated statements of financial position were as follows:
(Dollars in thousands) | Location in Statements of Financial Position |  | September 30, 2022 |  | December 31, 2021
Finance lease right-of-use assets | Property, plant and equipment, net |  | $ | 1,629 |  |  | $ | 389 |
Operating lease right-of-use assets | Other long-term assets |  | $ | 5,688 |  |  | $ | 17,161 |
Finance lease obligations, current portion | Other accrued liabilities |  | $ | 389 |  |  | $ | 198 |
Finance lease obligations, non-current portion | Other long-term liabilities |  | $ | 1,227 |  |  | $ | 209 |
Total finance lease obligations |  |  | $ | 1,616 |  |  | $ | 407 |
Operating lease obligations, current portion | Other accrued liabilities |  | $ | 2,016 |  |  | $ | 2,810 |
Operating lease obligations, non-current portion | Other long-term liabilities |  | $ | 4,112 |  |  | $ | 14,965 |
Total operating lease obligations |  |  | $ | 6,128 |  |  | $ | 17,775 |
Net Future Minimum Lease Payments The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of September 30, 2022:
| Finance |  | Operating
(Dollars in thousands) | Leases Signed |  | Less: Leases Not Yet Commenced |  | Leases in Effect |  | Leases Signed |  | Less: Leases Not Yet Commenced |  | Leases in Effect
2022 | 92 |  |  | (4) |  |  | 88 |  |  | 678 |  |  | (19) |  |  | 659 |
2023 | 564 |  |  | (51) |  |  | 513 |  |  | 2,446 |  |  | (441) |  |  | 2,005 |
2024 | 381 |  |  | (56) |  |  | 325 |  |  | 1,364 |  |  | (479) |  |  | 885 |
2025 | 381 |  |  | (56) |  |  | 325 |  |  | 1,021 |  |  | (498) |  |  | 523 |
2026 | 379 |  |  | (56) |  |  | 323 |  |  | 947 |  |  | (429) |  |  | 518 |
Thereafter | 343 |  |  | (126) |  |  | 217 |  |  | 5,535 |  |  | (2,973) |  |  | 2,562 |
Total lease payments | 2,140 |  |  | (349) |  |  | 1,791 |  |  | 11,991 |  |  | (4,839) |  |  | 7,152 |
Less: Interest | (204) |  |  | 29 |  |  | (175) |  |  | (2,333) |  |  | 1,309 |  |  | (1,024) |
Present Value of Net Future Minimum Lease Payments | 1,936 |  |  | (320) |  |  | 1,616 |  |  | 9,658 |  |  | (3,530) |  |  | 6,128 |
The following table includes information regarding the lease term and discount rates utilized in the calculation of the present value of net future minimum lease payments:
| Finance Leases |  | Operating Leases
Weighted Average Remaining Lease Term | 4.6 years |  | 6.1 years
Weighted Average Discount Rate | 3.76% |  | 4.40%
In April 2022, we successfully negotiated the termination of a lease signed for the facility in South Korea, which went into effect in October 2021, in exchange for an approximately $0.4 million settlement fee. The termination of this lease reduced our operating lease right-of-use assets and lease liabilities by approximately $9.2 million each.
Leases | Leases Amortization expense related to our finance lease right-of-use assets, which is primarily included in the “Cost of sales” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and nine-month periods ended September 30, 2022 and 2021. Interest expense related to our finance lease obligations, which is included in the “Interest expense, net” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and nine-month periods ended September 30, 2022 and 2021. Payments made on the principal portion of our finance lease obligations were immaterial for each of the three- and nine-month periods ended September 30, 2022 and 2021, excluding the $5.0 million net cash payment to exercise the Eschenbach, Germany manufacturing facility purchase option. We have operating leases primarily related to building space and vehicles. Renewal options are included in the lease term to the extent we are reasonably certain to exercise the option. The exercise of lease renewal options is at our sole discretion. We account for lease components separately from non-lease components. The incremental borrowing rate represents our ability to borrow on a collateralized basis over a similar lease term. Our expenses and payments for operating leases were as follows:
| Three Months Ended |  | Nine Months Ended
(Dollars in thousands) | September 30, 2022 |  | September 30, 2021 |  | September 30, 2022 |  | September 30, 2021
Operating leases expense | $ | 652 |  |  | $ | 594 |  |  | $ | 1,896 |  |  | $ | 2,054 |
Short-term leases expense | $ | 168 |  |  | $ | 97 |  |  | $ | 420 |  |  | $ | 227 |
Payments on operating lease obligations | $ | 663 |  |  | $ | 610 |  |  | $ | 2,231 |  |  | $ | 1,945 |
Our assets and liabilities balances related to finance and operating leases reflected in the condensed consolidated statements of financial position were as follows:
(Dollars in thousands) | Location in Statements of Financial Position |  | September 30, 2022 |  | December 31, 2021
Finance lease right-of-use assets | Property, plant and equipment, net |  | $ | 1,629 |  |  | $ | 389 |
Operating lease right-of-use assets | Other long-term assets |  | $ | 5,688 |  |  | $ | 17,161 |
Finance lease obligations, current portion | Other accrued liabilities |  | $ | 389 |  |  | $ | 198 |
Finance lease obligations, non-current portion | Other long-term liabilities |  | $ | 1,227 |  |  | $ | 209 |
Total finance lease obligations |  |  | $ | 1,616 |  |  | $ | 407 |
Operating lease obligations, current portion | Other accrued liabilities |  | $ | 2,016 |  |  | $ | 2,810 |
Operating lease obligations, non-current portion | Other long-term liabilities |  | $ | 4,112 |  |  | $ | 14,965 |
Total operating lease obligations |  |  | $ | 6,128 |  |  | $ | 17,775 |
Net Future Minimum Lease Payments The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of September 30, 2022:
| Finance |  | Operating
(Dollars in thousands) | Leases Signed |  | Less: Leases Not Yet Commenced |  | Leases in Effect |  | Leases Signed |  | Less: Leases Not Yet Commenced |  | Leases in Effect
2022 | 92 |  |  | (4) |  |  | 88 |  |  | 678 |  |  | (19) |  |  | 659 |
2023 | 564 |  |  | (51) |  |  | 513 |  |  | 2,446 |  |  | (441) |  |  | 2,005 |
2024 | 381 |  |  | (56) |  |  | 325 |  |  | 1,364 |  |  | (479) |  |  | 885 |
2025 | 381 |  |  | (56) |  |  | 325 |  |  | 1,021 |  |  | (498) |  |  | 523 |
2026 | 379 |  |  | (56) |  |  | 323 |  |  | 947 |  |  | (429) |  |  | 518 |
Thereafter | 343 |  |  | (126) |  |  | 217 |  |  | 5,535 |  |  | (2,973) |  |  | 2,562 |
Total lease payments | 2,140 |  |  | (349) |  |  | 1,791 |  |  | 11,991 |  |  | (4,839) |  |  | 7,152 |
Less: Interest | (204) |  |  | 29 |  |  | (175) |  |  | (2,333) |  |  | 1,309 |  |  | (1,024) |
Present Value of Net Future Minimum Lease Payments | 1,936 |  |  | (320) |  |  | 1,616 |  |  | 9,658 |  |  | (3,530) |  |  | 6,128 |
The following table includes information regarding the lease term and discount rates utilized in the calculation of the present value of net future minimum lease payments:
| Finance Leases |  | Operating Leases
Weighted Average Remaining Lease Term | 4.6 years |  | 6.1 years
Weighted Average Discount Rate | 3.76% |  | 4.40%
In April 2022, we successfully negotiated the termination of a lease signed for the facility in South Korea, which went into effect in October 2021, in exchange for an approximately $0.4 million settlement fee. The termination of this lease reduced our operating lease right-of-use assets and lease liabilities by approximately $9.2 million each.

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
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- 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 https://asc.fasb.org/subtopic&trid=77888251 + Details
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