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LEASES

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

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 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, 2024						December 31, 2023
Operating lease ROU assets			Operating lease assets						$	120,330					$	11,955
Operating lease current liabilities			Operating leases current liabilities						$	13,077					$	5,021
Operating lease long-term liabilities			Operating leases long-term liabilities						109,187						6,153
Total operating lease liabilities									$	122,264					$	11,174
Finance lease, gross			Property, plant & equipment, net						$	6,809					$	5,175
Finance lease accumulated depreciation			Property, plant & equipment, net						(4,797)						(3,489)
Finance lease, net									$	2,012					$	1,686
Finance lease current liabilities			Other current liabilities						$	1,180					$	1,093
Finance lease long-term liabilities			Other long-term liabilities						1,428						1,321
Total finance lease liabilities									$	2,608					$	2,414

At September 30, 2024, maturities of lease liabilities were as follows (amounts in thousands):

			Operating Leases						Finance Leases
October 1 - December 31, 2024			$	5,606					$	403
2025			19,111						1,057
2026			17,942						805
2027			15,215						389
2028			13,452						195
Thereafter			129,007						16
Total lease payments			$	200,333					$	2,865
Less imputed interest			78,069						257
			$	122,264					$	2,608
Weighted average remaining lease term (in years)			13.53						2.66

Supplemental cash flow information related to leases for the nine months ended September 30, 2024 were as follows: operating cash flows from operating leases were $5.5 million.

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 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, 2024						December 31, 2023
Operating lease ROU assets			Operating lease assets						$	120,330					$	11,955
Operating lease current liabilities			Operating leases current liabilities						$	13,077					$	5,021
Operating lease long-term liabilities			Operating leases long-term liabilities						109,187						6,153
Total operating lease liabilities									$	122,264					$	11,174
Finance lease, gross			Property, plant & equipment, net						$	6,809					$	5,175
Finance lease accumulated depreciation			Property, plant & equipment, net						(4,797)						(3,489)
Finance lease, net									$	2,012					$	1,686
Finance lease current liabilities			Other current liabilities						$	1,180					$	1,093
Finance lease long-term liabilities			Other long-term liabilities						1,428						1,321
Total finance lease liabilities									$	2,608					$	2,414

At September 30, 2024, maturities of lease liabilities were as follows (amounts in thousands):

			Operating Leases						Finance Leases
October 1 - December 31, 2024			$	5,606					$	403
2025			19,111						1,057
2026			17,942						805
2027			15,215						389
2028			13,452						195
Thereafter			129,007						16
Total lease payments			$	200,333					$	2,865
Less imputed interest			78,069						257
			$	122,264					$	2,608
Weighted average remaining lease term (in years)			13.53						2.66

Supplemental cash flow information related to leases for the nine months ended September 30, 2024 were as follows: operating cash flows from operating leases were $5.5 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
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//842-20/tableOfContent

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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
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//842-20/tableOfContent

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