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LEASES

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

LEASES

LEASES

The Company records a right-of-use ("ROU") asset and lease liability for substantially all leases for which it is a lessee, in accordance with ASC 842. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company has no significant lease agreements in place for which the Company is a lessor. At inception of a contract, the Company considers all relevant facts and circumstances to assess whether or not the contract represents a lease by determining whether or not the contract conveys the right to control the use of an identified asset, either explicit or implicit, for a period of time in exchange for consideration.

The Company leases certain industrial spaces, office space, land, and equipment. Some leases include one or more options to renew, with renewal terms that can extend the lease term from generally one to 5 years. The exercise of lease renewal options is at the Company’s sole discretion, and are included in the lease term only to the extent such renewal options are reasonably certain of being exercised upon lease commencement. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Leased assets obtained in exchange for new operating lease liabilities during the year ended December 31, 2019 were approximately $2.3 million. As of December 31, 2019, leases that the Company has signed but have not yet commenced are immaterial.

Leased assets and liabilities included within the Consolidated Balance Sheets consist of the following (in thousands):

		Classification		December 31, 2019
Right-of-Use Assets
Operating		Other assets		$	14,246
Finance		Property, plant and equipment, net		2,945
Total leased ROU assets				$	17,191
Liabilities
Current
Operating		Other accrued liabilities		$	4,369
Finance		Current portion of finance lease obligations		327
Noncurrent
Operating		Non-current liabilities		10,041
Finance		Finance lease obligations		378
Total lease liabilities				$	15,115

Lease costs included in the Consolidated Statements of Operations consist of the following (in thousands):

		Classification				Twelve Months Ended December 31, 2019
Operating lease cost		Cost of sales, selling expenses and general and administrative expense				$	5,172
Finance lease cost
Amortization of ROU leased assets		Depreciation and amortization				144
Interest on lease liabilities		Interest expense				65
Net lease cost						$	5,381

Maturity of the Company’s lease liabilities is as follows (in thousands):

		Operating Leases				Finance Leases				Total
2020		$	4,986			$	361			$	5,347
2021		4,477				361				4,838
2022		2,551				30				2,581
2023		1,855				—				1,855
2024		851				—				851
Thereafter		1,242				—				1,242
Total lease payments		$	15,962			$	752			$	16,714
Less: interest		1,552				47
Present value of lease payments		$	14,410			$	705

As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Remaining lease term and discount rates are as follows:

		December 31, 2019
Weighted average remaining lease term (years)
Operating leases		4.0
Finance leases		2.1
Weighted average discount rate
Operating leases		5.17	%
Finance leases		6.16	%

Lease costs included in the Consolidated Statements of Cash Flows are as follows (in thousands):

		Twelve Months Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		$	5,016
Operating cash flows from finance leases		$	53
Financing cash flows from finance leases		$	308

LEASES

LEASES

The Company records a right-of-use ("ROU") asset and lease liability for substantially all leases for which it is a lessee, in accordance with ASC 842. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company has no significant lease agreements in place for which the Company is a lessor. At inception of a contract, the Company considers all relevant facts and circumstances to assess whether or not the contract represents a lease by determining whether or not the contract conveys the right to control the use of an identified asset, either explicit or implicit, for a period of time in exchange for consideration.

The Company leases certain industrial spaces, office space, land, and equipment. Some leases include one or more options to renew, with renewal terms that can extend the lease term from generally one to 5 years. The exercise of lease renewal options is at the Company’s sole discretion, and are included in the lease term only to the extent such renewal options are reasonably certain of being exercised upon lease commencement. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Leased assets obtained in exchange for new operating lease liabilities during the year ended December 31, 2019 were approximately $2.3 million. As of December 31, 2019, leases that the Company has signed but have not yet commenced are immaterial.

Leased assets and liabilities included within the Consolidated Balance Sheets consist of the following (in thousands):

		Classification		December 31, 2019
Right-of-Use Assets
Operating		Other assets		$	14,246
Finance		Property, plant and equipment, net		2,945
Total leased ROU assets				$	17,191
Liabilities
Current
Operating		Other accrued liabilities		$	4,369
Finance		Current portion of finance lease obligations		327
Noncurrent
Operating		Non-current liabilities		10,041
Finance		Finance lease obligations		378
Total lease liabilities				$	15,115

Lease costs included in the Consolidated Statements of Operations consist of the following (in thousands):

		Classification				Twelve Months Ended December 31, 2019
Operating lease cost		Cost of sales, selling expenses and general and administrative expense				$	5,172
Finance lease cost
Amortization of ROU leased assets		Depreciation and amortization				144
Interest on lease liabilities		Interest expense				65
Net lease cost						$	5,381

Maturity of the Company’s lease liabilities is as follows (in thousands):

		Operating Leases				Finance Leases				Total
2020		$	4,986			$	361			$	5,347
2021		4,477				361				4,838
2022		2,551				30				2,581
2023		1,855				—				1,855
2024		851				—				851
Thereafter		1,242				—				1,242
Total lease payments		$	15,962			$	752			$	16,714
Less: interest		1,552				47
Present value of lease payments		$	14,410			$	705

As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Remaining lease term and discount rates are as follows:

		December 31, 2019
Weighted average remaining lease term (years)
Operating leases		4.0
Finance leases		2.1
Weighted average discount rate
Operating leases		5.17	%
Finance leases		6.16	%

Lease costs included in the Consolidated Statements of Cash Flows are as follows (in thousands):

		Twelve Months Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		$	5,016
Operating cash flows from finance leases		$	53
Financing cash flows from finance leases		$	308

X

- 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

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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 http://asc.fasb.org/subtopic&trid=77888251

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