XML 28 R17.htm IDEA: XBRL DOCUMENT v3.21.2

LEASE COMMITMENTS (Notes)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Lessee, Operating Leases [Text Block]

LEASESThe 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 FASB Accounting Standards Codification Topic 842 "Leases," 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 (7.27%), 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 Statements 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 Statements of Operations.

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

			Balance Sheet Classification						September 30, 2021			December 31, 2020
Operating lease ROU assets			Operating lease assets						$	20,709		$	24,356
Operating lease current liabilities			Other current liabilities						$	6,595		$	7,533
Operating lease long-term liabilities			Other long-term liabilities						13,245			17,137
Total operating lease liabilities									$	19,840		$	24,670
Finance lease, gross			Property, plant & equipment, net						$	7,163		$	6,785
Finance lease accumulated depreciation			Property, plant & equipment, net						(3,566)			(3,279)
Finance lease, net									$	3,597		$	3,506
Finance lease current liabilities			Other current liabilities						$	2,029		$	608
Finance lease long-term liabilities			Other long-term liabilities						2,966			2,072
Total finance lease liabilities									$	4,995		$	2,680

At September 30, 2021, maturities of lease liabilities were as follows (amounts in thousands):

			Operating Leases						Finance Leases
October 1 - December 31, 2021			$	2,224					$	564
2022			7,857						2,262
2023			5,694						1,708
2024			3,246						561
2025			2,018						222
Thereafter			3,855						96
Total lease payments			$	24,894					$	5,413
Less imputed interest			5,054						418
			$	19,840					$	4,995
Weighted average remaining lease term (in years)			4.16						2.68

Supplemental cash flow information related to leases for the nine months ended September 30, 2021 were as follows: operating cash flows from operating leases were $2.4 million and operating cash flows from finance leases were $0.2 million.

Lessee, Finance Leases [Text Block]

LEASESThe 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 FASB Accounting Standards Codification Topic 842 "Leases," 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 (7.27%), 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 Statements 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 Statements of Operations.

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

			Balance Sheet Classification						September 30, 2021			December 31, 2020
Operating lease ROU assets			Operating lease assets						$	20,709		$	24,356
Operating lease current liabilities			Other current liabilities						$	6,595		$	7,533
Operating lease long-term liabilities			Other long-term liabilities						13,245			17,137
Total operating lease liabilities									$	19,840		$	24,670
Finance lease, gross			Property, plant & equipment, net						$	7,163		$	6,785
Finance lease accumulated depreciation			Property, plant & equipment, net						(3,566)			(3,279)
Finance lease, net									$	3,597		$	3,506
Finance lease current liabilities			Other current liabilities						$	2,029		$	608
Finance lease long-term liabilities			Other long-term liabilities						2,966			2,072
Total finance lease liabilities									$	4,995		$	2,680

At September 30, 2021, maturities of lease liabilities were as follows (amounts in thousands):

			Operating Leases						Finance Leases
October 1 - December 31, 2021			$	2,224					$	564
2022			7,857						2,262
2023			5,694						1,708
2024			3,246						561
2025			2,018						222
Thereafter			3,855						96
Total lease payments			$	24,894					$	5,413
Less imputed interest			5,054						418
			$	19,840					$	4,995
Weighted average remaining lease term (in years)			4.16						2.68

Supplemental cash flow information related to leases for the nine months ended September 30, 2021 were as follows: operating cash flows from operating leases were $2.4 million and operating cash flows from finance leases were $0.2 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:	dtr-types: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:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration