XML 29 R18.htm IDEA: XBRL DOCUMENT v3.19.1

LEASE COMMITMENTS (Notes)

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Lessee, Operating Leases [Text Block]

LEASES

The Company leases certain buildings and equipment under both operating and finance leases.  Certain lease agreements provide for renewal options, fair value purchase options, and payment of property taxes, maintenance, and insurance by the Company. Under ASC 842, the Company made an accounting policy election, by class of underlying asset, not to separate non-lease components such as those previously stated, from lease components and instead will treat the lease agreement as a single lease component for all asset classes. Operating right-of-use (ROU) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent Titan's obligations to make lease payments arising from the lease. The majority of Titan's leases are operating leases. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of Titan's leases do not provide an implicit rate, the Company used its incremental borrowing rate (6.79%), based on the information available at the lease commencement date, in determining the present value of lease payments. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales and selling, general and administrative expense on the Condensed Consolidated Statement of Operations. Amortization and interest expense associated with finance leases are included in cost of sales and selling, general and administrative expense and interest expense, respectively, on the Condensed Consolidated Statement of Operations. Short-term operating leases, which have an initial term of twelve months or less, are not recorded on the balance sheet.

Supplemental balance sheet information related to leases was as follows (amounts in thousands):

	Balance Sheet Classification		March 31, 2019
Operating lease ROU assets	Operating lease assets		$	23,701
Operating lease current liabilities	Other current liabilities		$	7,129
Operating lease long-term liabilities	Other long-term liabilities		16,830
Total operating lease liabilities			$	23,959
Finance lease, gross	Property, plant & equipment, net		$	3,350
Finance lease accumulated depreciation	Property, plant & equipment, net		(396		)
Finance lease, net			$	2,954
Finance lease current liabilities	Other current liabilities		$	626
Finance lease long-term liabilities	Long-term debt		2,088
Total finance lease liabilities			$	2,714

At March 31, 2019, maturity of lease liabilities were as follows (amounts in thousands):

	Operating Leases				Finance Leases
April 1 - December 31, 2019	$	6,288			$	1,246
2020	5,983				803
2021	4,557				688
2022	3,267				588
2023	2,079				388
Thereafter	3,840				136
Total lease payments	$	26,014			$	3,849
Less imputed interest	2,055				1,135
	$	23,959			$	2,714
Weighted Average Remaining Lease Term (in years)	2.1				1.4

Supplemental cash flow information related to leases for the quarter ended March 31, 2019 was as follows: operating cash flows from operating leases were $2.5 million and operating cash flows from finance leases were $0.5 million.

Lessee, Finance Leases [Text Block]

LEASES

The Company leases certain buildings and equipment under both operating and finance leases.  Certain lease agreements provide for renewal options, fair value purchase options, and payment of property taxes, maintenance, and insurance by the Company. Under ASC 842, the Company made an accounting policy election, by class of underlying asset, not to separate non-lease components such as those previously stated, from lease components and instead will treat the lease agreement as a single lease component for all asset classes. Operating right-of-use (ROU) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent Titan's obligations to make lease payments arising from the lease. The majority of Titan's leases are operating leases. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of Titan's leases do not provide an implicit rate, the Company used its incremental borrowing rate (6.79%), based on the information available at the lease commencement date, in determining the present value of lease payments. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales and selling, general and administrative expense on the Condensed Consolidated Statement of Operations. Amortization and interest expense associated with finance leases are included in cost of sales and selling, general and administrative expense and interest expense, respectively, on the Condensed Consolidated Statement of Operations. Short-term operating leases, which have an initial term of twelve months or less, are not recorded on the balance sheet.

Supplemental balance sheet information related to leases was as follows (amounts in thousands):

	Balance Sheet Classification		March 31, 2019
Operating lease ROU assets	Operating lease assets		$	23,701
Operating lease current liabilities	Other current liabilities		$	7,129
Operating lease long-term liabilities	Other long-term liabilities		16,830
Total operating lease liabilities			$	23,959
Finance lease, gross	Property, plant & equipment, net		$	3,350
Finance lease accumulated depreciation	Property, plant & equipment, net		(396		)
Finance lease, net			$	2,954
Finance lease current liabilities	Other current liabilities		$	626
Finance lease long-term liabilities	Long-term debt		2,088
Total finance lease liabilities			$	2,714

At March 31, 2019, maturity of lease liabilities were as follows (amounts in thousands):

	Operating Leases				Finance Leases
April 1 - December 31, 2019	$	6,288			$	1,246
2020	5,983				803
2021	4,557				688
2022	3,267				588
2023	2,079				388
Thereafter	3,840				136
Total lease payments	$	26,014			$	3,849
Less imputed interest	2,055				1,135
	$	23,959			$	2,714
Weighted Average Remaining Lease Term (in years)	2.1				1.4

Supplemental cash flow information related to leases for the quarter ended March 31, 2019 was as follows: operating cash flows from operating leases were $2.5 million and operating cash flows from finance leases were $0.5 million.

X

- References

No definition available.

+ Details

Name:	us-gaap_LeasesAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- 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

+ Details

Name:	us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- 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

+ Details

Name:	us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration