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Leases | 12 Months Ended
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Dec. 31, 2020
Leases [Abstract] |
Leases | Leases The Company leases property used for distribution centers, office space, and Bolt branch locations throughout the U.S. and Canada, along with various equipment located in distribution centers and corporate headquarters. The expenses and income generated by the leasing activity of Lawson as lessee for the years ended December 31, 2020 and December 31, 2019 were as follows:
|  |  |  | (Dollars in Thousands)
|  |  |  | Year Ended December 31,
Lease Type |  | Classification |  | 2020 |  | 2019
Consolidated Operating Lease Expense (1) |  | Operating expenses |  | $ | 4,999 |  |  | $ | 4,729 |
Consolidated Financing Lease Amortization |  | Operating expenses |  | 226 |  |  | 206 |
Consolidated Financing Lease Interest |  | Interest expense |  | 28 |  |  | 30 |
Consolidated Financing Lease Expense |  |  |  | 254 |  |  | 236 |
Sublease Income (2) |  | Operating expenses |  | — |  |  | (160) |
Net Lease Cost |  |  |  | $ | 5,253 |  |  | $ | 4,805 |
(1) Includes short term lease expense, which is immaterial (2) Sublease income from sublease of a portion of the Company headquarters. The sublease was terminated in June 2019 and the Company has no other subleases The value of the net assets and liabilities generated by the leasing activity of Lawson as lessee as of December 31, 2020 were as follows:
|  | (Dollars in Thousands)
|  | Year Ended December 31,
Lease Type |  | 2020 |  | 2019
Total ROU operating lease assets (1) |  | $ | 8,246 |  |  | $ | 10,592 |
Total ROU financing lease assets (2) |  | 518 |  |  | 654 |
Total lease assets |  | $ | 8,764 |  |  | $ | 11,246 |
Total current operating lease obligation |  | $ | 4,360 |  |  | $ | 3,591 |
Total current financing lease obligation |  | 208 |  |  | 239 |
Total current lease obligations |  | $ | 4,568 |  |  | $ | 3,830 |
Total long term operating lease obligation |  | $ | 5,498 |  |  | $ | 9,133 |
Total long term financing lease obligation |  | 240 |  |  | 371 |
Total long term lease obligation |  | $ | 5,738 |  |  | $ | 9,504 |
(1) Operating lease assets are recorded net of accumulated amortization of $5.9 million and $1.2 million as of December 31, 2020 and December 31, 2019, respectively (2) Financing lease assets are recorded net of accumulated amortization of $0.4 million and $0.2 million as of December 31, 2020 and December 31, 2019, respectively The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of December 31, 2020 were as follows (Dollars in thousands):
Year Ended December 31, |  | Operating Leases |  | Financing Leases |  | Total
2021 |  | $ | 4,719 |  |  | $ | 219 |  |  | $ | 4,938 |
2022 |  | 3,212 |  |  | 143 |  |  | 3,355 |
2023 |  | 1,471 |  |  | 89 |  |  | 1,560 |
2024 |  | 509 |  |  | 25 |  |  | 534 |
2025 |  | 168 |  |  | — |  |  | 168 |
Thereafter |  | 462 |  |  | — |  |  | 462 |
Total lease payments |  | 10,541 |  |  | 476 |  |  | 11,017 |
Less: Interest |  | 683 |  |  | 28 |  |  | 711 |
Present value of lease liabilities |  | $ | 9,858 |  |  | $ | 448 |  |  | $ | 10,306 |
(1) Of the $10.5 million future minimum operating lease commitments outstanding at December 31, 2020, $2.2 million relates to a lease for the Company's headquarters which expires in March 2023 (2) The Company has an operating lease for the McCook Facility which expires in June 2022 and includes future minimum lease payments of $2.6 million The weighted average lease terms and interest rates of the leases held by Lawson as of December 31, 2020 are as follows:
Lease Type |  | Weighted Average Term in Years |  | Weighted Average Interest Rate
Operating Leases |  | 2.9 |  | 5.2%
Financing Leases |  | 2.5 |  | 5.3%
The cash outflows of the leasing activity of Lawson as lessee for the year ending December 31, 2020 are as follows (Dollars in thousands):
Cash Flow Source |  | Classification |  | Amount
Operating cash flows from operating leases |  | Operating activities |  | $ | 4,256 |
Operating cash flows from financing leases |  | Operating activities |  | 28 |
Financing cash flows from financing leases |  | Financing activities |  | 257 |
McCook Lease Adjustment Subsequent to the adoption of ASC 842 in 2019 the Company recorded a non-cash transaction to establish $1.7 million of operating ROU assets, for which $1.7 million of operating lease liabilities were incurred. Also, in 2019 the Company recorded a non-cash transaction to establish $0.4 million of financing ROU assets, for which $0.4 million of financing lease liabilities were incurred. Lawson as Lessor Prior to acquisition, Partsmaster leased parts washer machines to customers through its Torrents leasing program. The Torrents leasing program comprised a minor portion of the Partsmaster business. The Company will continue the leasing program for the foreseeable future. These leases are classified as operating leases. The leased machines are recognized as fixed assets on the Company's consolidated balance sheet and the leasing revenue is recognized on a straight line basis. The Torrents machine leasing program generated $0.9 million of revenue in 2020 post-acquisition.
Leases | Leases The Company leases property used for distribution centers, office space, and Bolt branch locations throughout the U.S. and Canada, along with various equipment located in distribution centers and corporate headquarters. The expenses and income generated by the leasing activity of Lawson as lessee for the years ended December 31, 2020 and December 31, 2019 were as follows:
|  |  |  | (Dollars in Thousands)
|  |  |  | Year Ended December 31,
Lease Type |  | Classification |  | 2020 |  | 2019
Consolidated Operating Lease Expense (1) |  | Operating expenses |  | $ | 4,999 |  |  | $ | 4,729 |
Consolidated Financing Lease Amortization |  | Operating expenses |  | 226 |  |  | 206 |
Consolidated Financing Lease Interest |  | Interest expense |  | 28 |  |  | 30 |
Consolidated Financing Lease Expense |  |  |  | 254 |  |  | 236 |
Sublease Income (2) |  | Operating expenses |  | — |  |  | (160) |
Net Lease Cost |  |  |  | $ | 5,253 |  |  | $ | 4,805 |
(1) Includes short term lease expense, which is immaterial (2) Sublease income from sublease of a portion of the Company headquarters. The sublease was terminated in June 2019 and the Company has no other subleases The value of the net assets and liabilities generated by the leasing activity of Lawson as lessee as of December 31, 2020 were as follows:
|  | (Dollars in Thousands)
|  | Year Ended December 31,
Lease Type |  | 2020 |  | 2019
Total ROU operating lease assets (1) |  | $ | 8,246 |  |  | $ | 10,592 |
Total ROU financing lease assets (2) |  | 518 |  |  | 654 |
Total lease assets |  | $ | 8,764 |  |  | $ | 11,246 |
Total current operating lease obligation |  | $ | 4,360 |  |  | $ | 3,591 |
Total current financing lease obligation |  | 208 |  |  | 239 |
Total current lease obligations |  | $ | 4,568 |  |  | $ | 3,830 |
Total long term operating lease obligation |  | $ | 5,498 |  |  | $ | 9,133 |
Total long term financing lease obligation |  | 240 |  |  | 371 |
Total long term lease obligation |  | $ | 5,738 |  |  | $ | 9,504 |
(1) Operating lease assets are recorded net of accumulated amortization of $5.9 million and $1.2 million as of December 31, 2020 and December 31, 2019, respectively (2) Financing lease assets are recorded net of accumulated amortization of $0.4 million and $0.2 million as of December 31, 2020 and December 31, 2019, respectively The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of December 31, 2020 were as follows (Dollars in thousands):
Year Ended December 31, |  | Operating Leases |  | Financing Leases |  | Total
2021 |  | $ | 4,719 |  |  | $ | 219 |  |  | $ | 4,938 |
2022 |  | 3,212 |  |  | 143 |  |  | 3,355 |
2023 |  | 1,471 |  |  | 89 |  |  | 1,560 |
2024 |  | 509 |  |  | 25 |  |  | 534 |
2025 |  | 168 |  |  | — |  |  | 168 |
Thereafter |  | 462 |  |  | — |  |  | 462 |
Total lease payments |  | 10,541 |  |  | 476 |  |  | 11,017 |
Less: Interest |  | 683 |  |  | 28 |  |  | 711 |
Present value of lease liabilities |  | $ | 9,858 |  |  | $ | 448 |  |  | $ | 10,306 |
(1) Of the $10.5 million future minimum operating lease commitments outstanding at December 31, 2020, $2.2 million relates to a lease for the Company's headquarters which expires in March 2023 (2) The Company has an operating lease for the McCook Facility which expires in June 2022 and includes future minimum lease payments of $2.6 million The weighted average lease terms and interest rates of the leases held by Lawson as of December 31, 2020 are as follows:
Lease Type |  | Weighted Average Term in Years |  | Weighted Average Interest Rate
Operating Leases |  | 2.9 |  | 5.2%
Financing Leases |  | 2.5 |  | 5.3%
The cash outflows of the leasing activity of Lawson as lessee for the year ending December 31, 2020 are as follows (Dollars in thousands):
Cash Flow Source |  | Classification |  | Amount
Operating cash flows from operating leases |  | Operating activities |  | $ | 4,256 |
Operating cash flows from financing leases |  | Operating activities |  | 28 |
Financing cash flows from financing leases |  | Financing activities |  | 257 |
McCook Lease Adjustment Subsequent to the adoption of ASC 842 in 2019 the Company recorded a non-cash transaction to establish $1.7 million of operating ROU assets, for which $1.7 million of operating lease liabilities were incurred. Also, in 2019 the Company recorded a non-cash transaction to establish $0.4 million of financing ROU assets, for which $0.4 million of financing lease liabilities were incurred. Lawson as Lessor Prior to acquisition, Partsmaster leased parts washer machines to customers through its Torrents leasing program. The Torrents leasing program comprised a minor portion of the Partsmaster business. The Company will continue the leasing program for the foreseeable future. These leases are classified as operating leases. The leased machines are recognized as fixed assets on the Company's consolidated balance sheet and the leasing revenue is recognized on a straight line basis. The Torrents machine leasing program generated $0.9 million of revenue in 2020 post-acquisition. The Company has adopted the practical expedient not to separate non-lease components that would be within the scope of ASC 606 from the associated lease components as the relevant criteria under ASC 842 are met.

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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://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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- Definition The entire disclosure for lessor entity's leasing arrangements for operating, capital and leveraged leases. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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