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LEASES

12 Months Ended

Dec. 31, 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 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 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, 2024, 2023, and 2022, operating lease expense was $24.5 million, $5.6 million, and $5.1 million, respectively, and finance lease amortization expense was $2.5 million, $3.0 million, and $2.6 million, respectively.

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

			Balance Sheet Classification						December 31, 2024						December 31, 2023
Operating lease ROU assets			Operating lease assets						$	117,027					$	11,955
Operating lease current liabilities			Operating leases current liabilities						$	11,999					$	5,021
Operating lease long-term liabilities			Operating leases long-term liabilities						106,020						6,153
Total operating lease liabilities									$	118,019					$	11,174
Finance lease, gross			Property, plant & equipment, net						$	6,801					$	5,175
Finance lease accumulated depreciation			Property, plant & equipment, net						(4,442)						(3,489)
Finance lease, net									$	2,359					$	1,686
Finance lease current liabilities			Other current liabilities						$	986					$	1,093
Finance lease long-term liabilities			Other long-term liabilities						1,483						1,321
Total finance lease liabilities									$	2,469					$	2,414

At December 31, 2024, maturity of lease liabilities were as follows (amounts in thousands):

			Operating Leases						Finance Leases
2025			$	19,460					$	1,138
2026			18,112						884
2027			15,121						457
2028			13,401						236
2029			12,508						16
Thereafter			115,688						—
Total future minimum lease payments			$	194,290					$	2,731
Less imputed interest			76,271						262
			$	118,019					$	2,469
Weighted average remaining lease term (in years)			13.50						2.67
Weighted average discount rate			7.27		%				7.27		%

Supplemental cash flow information related to leases for the year ended December 31, 2024 were as follows: operating cash flows from operating leases were $39.8 million and operating cash flows from finance leases were $0.4 million.

Supplemental cash flow information related to leases for the year ended December 31, 2023 were as follows: operating cash flows from operating leases were $6.8 million and operating cash flows from finance leases were $0.2 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 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 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, 2024, 2023, and 2022, operating lease expense was $24.5 million, $5.6 million, and $5.1 million, respectively, and finance lease amortization expense was $2.5 million, $3.0 million, and $2.6 million, respectively.

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

			Balance Sheet Classification						December 31, 2024						December 31, 2023
Operating lease ROU assets			Operating lease assets						$	117,027					$	11,955
Operating lease current liabilities			Operating leases current liabilities						$	11,999					$	5,021
Operating lease long-term liabilities			Operating leases long-term liabilities						106,020						6,153
Total operating lease liabilities									$	118,019					$	11,174
Finance lease, gross			Property, plant & equipment, net						$	6,801					$	5,175
Finance lease accumulated depreciation			Property, plant & equipment, net						(4,442)						(3,489)
Finance lease, net									$	2,359					$	1,686
Finance lease current liabilities			Other current liabilities						$	986					$	1,093
Finance lease long-term liabilities			Other long-term liabilities						1,483						1,321
Total finance lease liabilities									$	2,469					$	2,414

At December 31, 2024, maturity of lease liabilities were as follows (amounts in thousands):

			Operating Leases						Finance Leases
2025			$	19,460					$	1,138
2026			18,112						884
2027			15,121						457
2028			13,401						236
2029			12,508						16
Thereafter			115,688						—
Total future minimum lease payments			$	194,290					$	2,731
Less imputed interest			76,271						262
			$	118,019					$	2,469
Weighted average remaining lease term (in years)			13.50						2.67
Weighted average discount rate			7.27		%				7.27		%

Supplemental cash flow information related to leases for the year ended December 31, 2024 were as follows: operating cash flows from operating leases were $39.8 million and operating cash flows from finance leases were $0.4 million.

Supplemental cash flow information related to leases for the year ended December 31, 2023 were as follows: operating cash flows from operating leases were $6.8 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
-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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