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Leases

12 Months Ended

Dec. 31, 2021

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 generated by the leasing activity of Lawson as lessee for the years ended December 31, 2021 and December 31, 2020 were as follows:

												(Dollars in Thousands)
												Year Ended December 31,
Lease Type						Classification						2021						2020
Consolidated Operating Lease Expense (1)						Operating expenses						$	5,881					$	4,999
Consolidated Financing Lease Amortization						Operating expenses						192						226
Consolidated Financing Lease Interest						Interest expense						15						28
Consolidated Financing Lease Expense												207						254
Net Lease Cost												$	6,088					$	5,253

(1) Includes short term lease expense, which is immaterial

The value of the net assets and liabilities generated by the leasing activity of Lawson as lessee as of December 31, 2021 and December 31, 2020 were as follows:

						(Dollars in Thousands)
						Year Ended December 31,
Lease Type						2021						2020
Total ROU operating lease assets (1)						$	13,662					$	8,246
Total ROU financing lease assets (2)						383						518
Total lease assets						$	14,045					$	8,764
Total current operating lease obligation						$	4,313					$	4,360
Total current financing lease obligation						154						208
Total current lease obligations						$	4,467					$	4,568
Total long term operating lease obligation						$	10,713					$	5,498
Total long term financing lease obligation						128						240
Total long term lease obligation						$	10,841					$	5,738

(1) Operating lease assets are recorded net of accumulated amortization of $8.0 million and $5.9 million as of December 31, 2021 and December 31, 2020, respectively

(2) Financing lease assets are recorded net of accumulated amortization of $0.6 million and $0.4 million as of December 31, 2021 and December 31, 2020, respectively

The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of December 31, 2021 were as follows (Dollars in thousands):

Year Ended December 31,						Operating Leases						Financing Leases						Total
2022						$	4,725					$	165					$	4,890
2023						3,944						100						4,044
2024						3,015						30						3,045
2025						1,739						—						1,739
2026						724						—						724
Thereafter						1,983						—						1,983
Total lease payments						16,130						295						16,425
Less: Interest						1,104						13						1,117
Present value of lease liabilities						$	15,026					$	282					$	15,308

(1)     Of the $16.1 million future minimum operating lease commitments outstanding at December 31, 2021, $1.3 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 2025 and includes future minimum lease payments of $6.5 million

The weighted average lease terms and interest rates of the leases held by Lawson as of December 31, 2021 are as follows:

Lease Type						Weighted Average Term in Years						Weighted Average Interest Rate
Operating Leases						4.5						4.1%
Financing Leases						2.1						4.8%

The cash outflows of the leasing activity of Lawson as lessee for the year ending December 31, 2021 are as follows (Dollars in thousands):

Cash Flow Source

Classification

Amount

Operating cash flows from operating leases

Operating activities

$

4,846

Operating cash flows from financing leases

Operating activities

15

Financing cash flows from financing leases

Financing activities

222

In March 2021 the Company signed a three year extension for their lease at the McCook distribution center ("McCook"). The lease extension created a right of use asset of $5.3 million and a lease liability of $5.3 million.

Refer to Note 4 - Revenue Recognition for a discussion on Lawson activities as lessor.

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 generated by the leasing activity of Lawson as lessee for the years ended December 31, 2021 and December 31, 2020 were as follows:

												(Dollars in Thousands)
												Year Ended December 31,
Lease Type						Classification						2021						2020
Consolidated Operating Lease Expense (1)						Operating expenses						$	5,881					$	4,999
Consolidated Financing Lease Amortization						Operating expenses						192						226
Consolidated Financing Lease Interest						Interest expense						15						28
Consolidated Financing Lease Expense												207						254
Net Lease Cost												$	6,088					$	5,253

(1) Includes short term lease expense, which is immaterial

The value of the net assets and liabilities generated by the leasing activity of Lawson as lessee as of December 31, 2021 and December 31, 2020 were as follows:

						(Dollars in Thousands)
						Year Ended December 31,
Lease Type						2021						2020
Total ROU operating lease assets (1)						$	13,662					$	8,246
Total ROU financing lease assets (2)						383						518
Total lease assets						$	14,045					$	8,764
Total current operating lease obligation						$	4,313					$	4,360
Total current financing lease obligation						154						208
Total current lease obligations						$	4,467					$	4,568
Total long term operating lease obligation						$	10,713					$	5,498
Total long term financing lease obligation						128						240
Total long term lease obligation						$	10,841					$	5,738

(1) Operating lease assets are recorded net of accumulated amortization of $8.0 million and $5.9 million as of December 31, 2021 and December 31, 2020, respectively

(2) Financing lease assets are recorded net of accumulated amortization of $0.6 million and $0.4 million as of December 31, 2021 and December 31, 2020, respectively

The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of December 31, 2021 were as follows (Dollars in thousands):

Year Ended December 31,						Operating Leases						Financing Leases						Total
2022						$	4,725					$	165					$	4,890
2023						3,944						100						4,044
2024						3,015						30						3,045
2025						1,739						—						1,739
2026						724						—						724
Thereafter						1,983						—						1,983
Total lease payments						16,130						295						16,425
Less: Interest						1,104						13						1,117
Present value of lease liabilities						$	15,026					$	282					$	15,308

(1)     Of the $16.1 million future minimum operating lease commitments outstanding at December 31, 2021, $1.3 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 2025 and includes future minimum lease payments of $6.5 million

The weighted average lease terms and interest rates of the leases held by Lawson as of December 31, 2021 are as follows:

Lease Type						Weighted Average Term in Years						Weighted Average Interest Rate
Operating Leases						4.5						4.1%
Financing Leases						2.1						4.8%

The cash outflows of the leasing activity of Lawson as lessee for the year ending December 31, 2021 are as follows (Dollars in thousands):

Cash Flow Source

Classification

Amount

Operating cash flows from operating leases

Operating activities

$

4,846

Operating cash flows from financing leases

Operating activities

15

Financing cash flows from financing leases

Financing activities

222

In March 2021 the Company signed a three year extension for their lease at the McCook distribution center ("McCook"). The lease extension created a right of use asset of $5.3 million and a lease liability of $5.3 million.

Refer to Note 4 - Revenue Recognition for a discussion on Lawson activities as lessor.

X

- References

No definition available.

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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 http://asc.fasb.org/subtopic&trid=77888251

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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 http://asc.fasb.org/subtopic&trid=77888251

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