XML 27 R16.htm IDEA: XBRL DOCUMENT v3.23.1

LEASE COMMITMENTS (Notes)

3 Months Ended

Mar. 31, 2023

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 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						March 31, 2023						December 31, 2022
Operating lease ROU assets			Operating lease assets						$	7,805					$	8,932
Operating lease current liabilities			Other current liabilities						$	3,131					$	3,850
Operating lease long-term liabilities			Other long-term liabilities						2,119						2,409
Total operating lease liabilities									$	5,250					$	6,259
Finance lease, gross			Property, plant & equipment, net						$	6,940					$	6,994
Finance lease accumulated depreciation			Property, plant & equipment, net						(4,244)						(3,820)
Finance lease, net									$	2,696					$	3,174
Finance lease current liabilities			Other current liabilities						$	2,451					$	2,562
Finance lease long-term liabilities			Other long-term liabilities						2,970						3,444
Total finance lease liabilities									$	5,421					$	6,006

At March 31, 2023, maturities of lease liabilities were as follows (amounts in thousands):

			Operating Leases						Finance Leases
April 1 - December 31, 2023			$	2,767					$	2,089
2024			1,874						1,763
2025			609						1,114
2026			237						702
2027			181						45
Thereafter			216						3
Total lease payments			$	5,884					$	5,716
Less imputed interest			634						295
			$	5,250					$	5,421
Weighted average remaining lease term (in years)			2.37						2.56

Supplemental cash flow information related to leases for the three months ended March 31, 2023 were as follows: operating cash flows from operating leases were $1.8 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 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						March 31, 2023						December 31, 2022
Operating lease ROU assets			Operating lease assets						$	7,805					$	8,932
Operating lease current liabilities			Other current liabilities						$	3,131					$	3,850
Operating lease long-term liabilities			Other long-term liabilities						2,119						2,409
Total operating lease liabilities									$	5,250					$	6,259
Finance lease, gross			Property, plant & equipment, net						$	6,940					$	6,994
Finance lease accumulated depreciation			Property, plant & equipment, net						(4,244)						(3,820)
Finance lease, net									$	2,696					$	3,174
Finance lease current liabilities			Other current liabilities						$	2,451					$	2,562
Finance lease long-term liabilities			Other long-term liabilities						2,970						3,444
Total finance lease liabilities									$	5,421					$	6,006

At March 31, 2023, maturities of lease liabilities were as follows (amounts in thousands):

			Operating Leases						Finance Leases
April 1 - December 31, 2023			$	2,767					$	2,089
2024			1,874						1,763
2025			609						1,114
2026			237						702
2027			181						45
Thereafter			216						3
Total lease payments			$	5,884					$	5,716
Less imputed interest			634						295
			$	5,250					$	5,421
Weighted average remaining lease term (in years)			2.37						2.56

Supplemental cash flow information related to leases for the three months ended March 31, 2023 were as follows: operating cash flows from operating leases were $1.8 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 https://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 https://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