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Leases | 3 Months Ended
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Mar. 31, 2022
Leases [Abstract] |
Leases | Leases Activities as Lessee The Company leases property used for distribution centers, office space, and Bolt Supply 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 for the three months ended March 31, 2022 and 2021 were as follows:
|  |  |  | (Dollars in thousands)
|  |  |  | Three Months Ended March 31,
Lease Type |  | Classification |  | 2022 |  | 2021
Consolidated Operating Lease Expense (1) |  | Operating expenses |  | $ | 1,556 |  |  | $ | 1,493 |
Consolidated Financing Lease Amortization |  | Operating expenses |  | 33 |  |  | 58 |
Consolidated Financing Lease Interest |  | Interest expense |  | 1 |  |  | 5 |
Consolidated Financing Lease Expense |  |  |  | 34 |  |  | 63 |
Net Lease Cost |  |  |  | $ | 1,590 |  |  | $ | 1,556 |
(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 March 31, 2022 and December 31, 2021 are as follows:
|  | (Dollars in thousands)
Lease Type |  | March 31, 2022 |  | December 31, 2021
Total Right Of Use (“ROU”) operating lease assets (1) |  | $ | 17,221 |  |  | $ | 13,662 |
Total ROU financing lease assets (2) |  | 350 |  |  | 383 |
Total lease assets |  | $ | 17,571 |  |  | $ | 14,045 |
Total current operating lease obligation |  | $ | 4,712 |  |  | $ | 4,313 |
Total current financing lease obligation |  | 143 |  |  | 154 |
Total current lease obligations |  | $ | 4,855 |  |  | $ | 4,467 |
Total long term operating lease obligation |  | $ | 13,814 |  |  | $ | 10,713 |
Total long term financing lease obligation |  | 94 |  |  | 128 |
Total long term lease obligation |  | $ | 13,908 |  |  | $ | 10,841 |
(1) Operating lease assets are recorded net of accumulated amortization of $9.0 million and $8.0 million as of March 31, 2022 and December 31, 2021, respectively (2) Financing lease assets are recorded net of accumulated amortization of $0.6 million and $0.6 million as of March 31, 2022 and December 31, 2021, respectively The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of March 31, 2022 were as follows (Dollars in thousands):
Maturity Date of Lease Liabilities |  | Operating Leases |  | Financing Leases |  | Total
Year one |  | $ | 5,273 |  |  | $ | 146 |  |  | $ | 5,419 |
Year two |  | 4,152 |  |  | 78 |  |  | 4,230 |
Year three |  | 3,392 |  |  | 18 |  |  | 3,410 |
Year four |  | 1,790 |  |  | 3 |  |  | 1,793 |
Year five |  | 1,276 |  |  | 2 |  |  | 1,278 |
Subsequent years |  | 4,708 |  |  | — |  |  | 4,708 |
Total lease payments (1) |  | 20,591 |  |  | 247 |  |  | 20,838 |
Less: Interest |  | 2,065 |  |  | 10 |  |  | 2,075 |
Present value of lease liabilities |  | $ | 18,526 |  |  | $ | 237 |  |  | $ | 18,763 |
(1) Minimum lease payments exclude payments to landlord for real estate taxes and common area maintenance $0.4 million The weighted average lease terms and interest rates of the leases held by Lawson as of March 31, 2022 are as follows:
Lease Type |  | Weighted Average Term in Years |  | Weighted Average Interest Rate
Operating Leases |  | 5.8 |  | 4.18%
Financing Leases |  | 1.9 |  | 4.78%
The cash outflows of the leasing activity for the three months ended March 31, 2022 are as follows (Dollars in thousands):
Cash Flow Source |  | Classification |  | Amount
Operating cash flows from operating leases |  | Operating activities |  | $ | 1,169 |
Operating cash flows from financing leases |  | Operating activities |  | 1 |
Financing cash flows from financing leases |  | Financing activities |  | 43 |
In March 2022 the Company signed a new lease for the Calgary distribution center. The lease created a right of use asset of $4.5 million and a lease liability of $4.5 million. Refer to Note 3 - Revenue Recognition for a discussion on Lawson activities as lessor.
Leases | Leases Activities as Lessee The Company leases property used for distribution centers, office space, and Bolt Supply 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 for the three months ended March 31, 2022 and 2021 were as follows:
|  |  |  | (Dollars in thousands)
|  |  |  | Three Months Ended March 31,
Lease Type |  | Classification |  | 2022 |  | 2021
Consolidated Operating Lease Expense (1) |  | Operating expenses |  | $ | 1,556 |  |  | $ | 1,493 |
Consolidated Financing Lease Amortization |  | Operating expenses |  | 33 |  |  | 58 |
Consolidated Financing Lease Interest |  | Interest expense |  | 1 |  |  | 5 |
Consolidated Financing Lease Expense |  |  |  | 34 |  |  | 63 |
Net Lease Cost |  |  |  | $ | 1,590 |  |  | $ | 1,556 |
(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 March 31, 2022 and December 31, 2021 are as follows:
|  | (Dollars in thousands)
Lease Type |  | March 31, 2022 |  | December 31, 2021
Total Right Of Use (“ROU”) operating lease assets (1) |  | $ | 17,221 |  |  | $ | 13,662 |
Total ROU financing lease assets (2) |  | 350 |  |  | 383 |
Total lease assets |  | $ | 17,571 |  |  | $ | 14,045 |
Total current operating lease obligation |  | $ | 4,712 |  |  | $ | 4,313 |
Total current financing lease obligation |  | 143 |  |  | 154 |
Total current lease obligations |  | $ | 4,855 |  |  | $ | 4,467 |
Total long term operating lease obligation |  | $ | 13,814 |  |  | $ | 10,713 |
Total long term financing lease obligation |  | 94 |  |  | 128 |
Total long term lease obligation |  | $ | 13,908 |  |  | $ | 10,841 |
(1) Operating lease assets are recorded net of accumulated amortization of $9.0 million and $8.0 million as of March 31, 2022 and December 31, 2021, respectively (2) Financing lease assets are recorded net of accumulated amortization of $0.6 million and $0.6 million as of March 31, 2022 and December 31, 2021, respectively The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of March 31, 2022 were as follows (Dollars in thousands):
Maturity Date of Lease Liabilities |  | Operating Leases |  | Financing Leases |  | Total
Year one |  | $ | 5,273 |  |  | $ | 146 |  |  | $ | 5,419 |
Year two |  | 4,152 |  |  | 78 |  |  | 4,230 |
Year three |  | 3,392 |  |  | 18 |  |  | 3,410 |
Year four |  | 1,790 |  |  | 3 |  |  | 1,793 |
Year five |  | 1,276 |  |  | 2 |  |  | 1,278 |
Subsequent years |  | 4,708 |  |  | — |  |  | 4,708 |
Total lease payments (1) |  | 20,591 |  |  | 247 |  |  | 20,838 |
Less: Interest |  | 2,065 |  |  | 10 |  |  | 2,075 |
Present value of lease liabilities |  | $ | 18,526 |  |  | $ | 237 |  |  | $ | 18,763 |
(1) Minimum lease payments exclude payments to landlord for real estate taxes and common area maintenance $0.4 million The weighted average lease terms and interest rates of the leases held by Lawson as of March 31, 2022 are as follows:
Lease Type |  | Weighted Average Term in Years |  | Weighted Average Interest Rate
Operating Leases |  | 5.8 |  | 4.18%
Financing Leases |  | 1.9 |  | 4.78%
The cash outflows of the leasing activity for the three months ended March 31, 2022 are as follows (Dollars in thousands):
Cash Flow Source |  | Classification |  | Amount
Operating cash flows from operating leases |  | Operating activities |  | $ | 1,169 |
Operating cash flows from financing leases |  | Operating activities |  | 1 |
Financing cash flows from financing leases |  | Financing activities |  | 43 |
In March 2022 the Company signed a new lease for the Calgary distribution center. The lease created a right of use asset of $4.5 million and a lease liability of $4.5 million. Refer to Note 3 - Revenue Recognition for a discussion on Lawson activities as lessor.
Leases | Leases Activities as Lessee The Company leases property used for distribution centers, office space, and Bolt Supply 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 for the three months ended March 31, 2022 and 2021 were as follows:
|  |  |  | (Dollars in thousands)
|  |  |  | Three Months Ended March 31,
Lease Type |  | Classification |  | 2022 |  | 2021
Consolidated Operating Lease Expense (1) |  | Operating expenses |  | $ | 1,556 |  |  | $ | 1,493 |
Consolidated Financing Lease Amortization |  | Operating expenses |  | 33 |  |  | 58 |
Consolidated Financing Lease Interest |  | Interest expense |  | 1 |  |  | 5 |
Consolidated Financing Lease Expense |  |  |  | 34 |  |  | 63 |
Net Lease Cost |  |  |  | $ | 1,590 |  |  | $ | 1,556 |
(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 March 31, 2022 and December 31, 2021 are as follows:
|  | (Dollars in thousands)
Lease Type |  | March 31, 2022 |  | December 31, 2021
Total Right Of Use (“ROU”) operating lease assets (1) |  | $ | 17,221 |  |  | $ | 13,662 |
Total ROU financing lease assets (2) |  | 350 |  |  | 383 |
Total lease assets |  | $ | 17,571 |  |  | $ | 14,045 |
Total current operating lease obligation |  | $ | 4,712 |  |  | $ | 4,313 |
Total current financing lease obligation |  | 143 |  |  | 154 |
Total current lease obligations |  | $ | 4,855 |  |  | $ | 4,467 |
Total long term operating lease obligation |  | $ | 13,814 |  |  | $ | 10,713 |
Total long term financing lease obligation |  | 94 |  |  | 128 |
Total long term lease obligation |  | $ | 13,908 |  |  | $ | 10,841 |
(1) Operating lease assets are recorded net of accumulated amortization of $9.0 million and $8.0 million as of March 31, 2022 and December 31, 2021, respectively (2) Financing lease assets are recorded net of accumulated amortization of $0.6 million and $0.6 million as of March 31, 2022 and December 31, 2021, respectively The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of March 31, 2022 were as follows (Dollars in thousands):
Maturity Date of Lease Liabilities |  | Operating Leases |  | Financing Leases |  | Total
Year one |  | $ | 5,273 |  |  | $ | 146 |  |  | $ | 5,419 |
Year two |  | 4,152 |  |  | 78 |  |  | 4,230 |
Year three |  | 3,392 |  |  | 18 |  |  | 3,410 |
Year four |  | 1,790 |  |  | 3 |  |  | 1,793 |
Year five |  | 1,276 |  |  | 2 |  |  | 1,278 |
Subsequent years |  | 4,708 |  |  | — |  |  | 4,708 |
Total lease payments (1) |  | 20,591 |  |  | 247 |  |  | 20,838 |
Less: Interest |  | 2,065 |  |  | 10 |  |  | 2,075 |
Present value of lease liabilities |  | $ | 18,526 |  |  | $ | 237 |  |  | $ | 18,763 |
(1) Minimum lease payments exclude payments to landlord for real estate taxes and common area maintenance $0.4 million The weighted average lease terms and interest rates of the leases held by Lawson as of March 31, 2022 are as follows:
Lease Type |  | Weighted Average Term in Years |  | Weighted Average Interest Rate
Operating Leases |  | 5.8 |  | 4.18%
Financing Leases |  | 1.9 |  | 4.78%
The cash outflows of the leasing activity for the three months ended March 31, 2022 are as follows (Dollars in thousands):
Cash Flow Source |  | Classification |  | Amount
Operating cash flows from operating leases |  | Operating activities |  | $ | 1,169 |
Operating cash flows from financing leases |  | Operating activities |  | 1 |
Financing cash flows from financing leases |  | Financing activities |  | 43 |
In March 2022 the Company signed a new lease for the Calgary distribution center. The lease created a right of use asset of $4.5 million and a lease liability of $4.5 million. Refer to Note 3 - Revenue Recognition for a discussion on Lawson activities as lessor.

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