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LEASE COMMITMENTS (Notes)

9 Months Ended

Sep. 30, 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 interest 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 expenses on the Condensed Consolidated Statement of Operations. Amortization expense associated with finance leases is included in cost of sales and selling, general and administrative expenses, and interest expense associated with finance leases is included in interest expense in 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		September 30, 2019
Operating lease ROU assets	Operating lease assets		$	23,497
Operating lease current liabilities	Other current liabilities		$	6,871
Operating lease long-term liabilities	Other long-term liabilities		17,051
Total operating lease liabilities			$	23,922
Finance lease, gross	Property, plant & equipment, net		$	6,897
Finance lease accumulated depreciation	Property, plant & equipment, net		(1,979		)
Finance lease, net			$	4,918
Finance lease current liabilities	Other current liabilities		$	1,145
Finance lease long-term liabilities	Long-term debt		3,731
Total finance lease liabilities			$	4,876

At September 30, 2019, maturity of lease liabilities were as follows (amounts in thousands):

	Operating Leases				Finance Leases
October 1 - December 31, 2019	$	3,255			$	597
2020	7,669				1,318
2021	5,922				1,259
2022	4,297				1,171
2023	2,899				911
Thereafter	4,894				530
Total lease payments	$	28,936			$	5,786
Less imputed interest	5,014				910
	$	23,922			$	4,876
Weighted average remaining lease term (in years)	4.8				4.4

Supplemental cash flow information related to leases for the nine months ended September 30, 2019 were as follows: operating cash flows from operating leases were $7.3 million and operating cash flows from finance leases were $0.2 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 interest 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 expenses on the Condensed Consolidated Statement of Operations. Amortization expense associated with finance leases is included in cost of sales and selling, general and administrative expenses, and interest expense associated with finance leases is included in interest expense in 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		September 30, 2019
Operating lease ROU assets	Operating lease assets		$	23,497
Operating lease current liabilities	Other current liabilities		$	6,871
Operating lease long-term liabilities	Other long-term liabilities		17,051
Total operating lease liabilities			$	23,922
Finance lease, gross	Property, plant & equipment, net		$	6,897
Finance lease accumulated depreciation	Property, plant & equipment, net		(1,979		)
Finance lease, net			$	4,918
Finance lease current liabilities	Other current liabilities		$	1,145
Finance lease long-term liabilities	Long-term debt		3,731
Total finance lease liabilities			$	4,876

At September 30, 2019, maturity of lease liabilities were as follows (amounts in thousands):

	Operating Leases				Finance Leases
October 1 - December 31, 2019	$	3,255			$	597
2020	7,669				1,318
2021	5,922				1,259
2022	4,297				1,171
2023	2,899				911
Thereafter	4,894				530
Total lease payments	$	28,936			$	5,786
Less imputed interest	5,014				910
	$	23,922			$	4,876
Weighted average remaining lease term (in years)	4.8				4.4

Supplemental cash flow information related to leases for the nine months ended September 30, 2019 were as follows: operating cash flows from operating leases were $7.3 million and operating cash flows from finance leases were $0.2 million.

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- 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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