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LEASE COMMITMENTS | 12 Months Ended
--- | ---
Dec. 31, 2022
Leases [Abstract] |
Lessee, Operating Leases | 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 (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 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 Consolidated Statement of Operations. For the years ended December 31, 2022, 2021, and 2020, operating lease expense was $5.1 million, $6.1 million, and $5.9 million, respectively, and finance lease amortization expense was $2.6 million, $3.8 million, and $3.1 million, respectively. Supplemental balance sheet information related to leases was as follows (amounts in thousands):
| Balance Sheet Classification |  | 2022
Operating lease ROU assets | Operating lease assets |  | $ | 8,932 |
Operating lease current liabilities | Other current liabilities |  | $ | 3,850 |
Operating lease long-term liabilities | Other long-term liabilities |  | 2,409 |
Total operating lease liabilities |  |  | $ | 6,259 |
Finance lease, gross | Property, plant & equipment, net |  | $ | 6,994 |
Finance lease accumulated depreciation | Property, plant & equipment, net |  | (3,820) |
Finance lease, net |  |  | $ | 3,174 |
Finance lease current liabilities | Other current liabilities |  | $ | 2,562 |
Finance lease long-term liabilities | Other long-term liabilities |  | 3,444 |
Total finance lease liabilities |  |  | $ | 6,006 |
At December 31, 2022, maturity of lease liabilities were as follows (amounts in thousands):
| Operating Leases |  | Finance Leases
2023 | $ | 4,013 |  |  | $ | 2,873 |
2024 | 1,846 |  |  | 1,708 |
2025 | 577 |  |  | 1,061 |
2026 | 237 |  |  | 663 |
2027 | 187 |  |  | 44 |
Thereafter | 233 |  |  | — |
Total future minimum lease payments | $ | 7,093 |  |  | $ | 6,349 |
Less imputed interest | 834 |  |  | 343 |
| $ | 6,259 |  |  | $ | 6,006 |
Weighted average remaining lease term (in years) | 2.39 |  | 2.64
Supplemental cash flow information related to leases for the year ended December 31, 2022 were as follows: operating cash flows from operating leases were $9.2 million and operating cash flows from finance leases were $0.2 million.
Lessee, Finance Leases | 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 (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 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 Consolidated Statement of Operations. For the years ended December 31, 2022, 2021, and 2020, operating lease expense was $5.1 million, $6.1 million, and $5.9 million, respectively, and finance lease amortization expense was $2.6 million, $3.8 million, and $3.1 million, respectively. Supplemental balance sheet information related to leases was as follows (amounts in thousands):
| Balance Sheet Classification |  | 2022
Operating lease ROU assets | Operating lease assets |  | $ | 8,932 |
Operating lease current liabilities | Other current liabilities |  | $ | 3,850 |
Operating lease long-term liabilities | Other long-term liabilities |  | 2,409 |
Total operating lease liabilities |  |  | $ | 6,259 |
Finance lease, gross | Property, plant & equipment, net |  | $ | 6,994 |
Finance lease accumulated depreciation | Property, plant & equipment, net |  | (3,820) |
Finance lease, net |  |  | $ | 3,174 |
Finance lease current liabilities | Other current liabilities |  | $ | 2,562 |
Finance lease long-term liabilities | Other long-term liabilities |  | 3,444 |
Total finance lease liabilities |  |  | $ | 6,006 |
At December 31, 2022, maturity of lease liabilities were as follows (amounts in thousands):
| Operating Leases |  | Finance Leases
2023 | $ | 4,013 |  |  | $ | 2,873 |
2024 | 1,846 |  |  | 1,708 |
2025 | 577 |  |  | 1,061 |
2026 | 237 |  |  | 663 |
2027 | 187 |  |  | 44 |
Thereafter | 233 |  |  | — |
Total future minimum lease payments | $ | 7,093 |  |  | $ | 6,349 |
Less imputed interest | 834 |  |  | 343 |
| $ | 6,259 |  |  | $ | 6,006 |
Weighted average remaining lease term (in years) | 2.39 |  | 2.64
Supplemental cash flow information related to leases for the year ended December 31, 2022 were as follows: operating cash flows from operating leases were $9.2 million and operating cash flows from finance leases were $0.2 million.

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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 https://asc.fasb.org/subtopic&trid=77888251 + Details
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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 https://asc.fasb.org/subtopic&trid=77888251 + Details
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