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LEASES

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

LEASES

LEASESThe 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 at 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. During the three months ended March 31, 2020, leased assets obtained in exchange for new operating lease liabilities totaled approximately $1.5 million. As of March 31, 2020, leases that the Company has signed but have not yet commenced are immaterial.

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

						Classification						March 31, 2020						December 31, 2019
Right-of-Use Assets
Operating						Other assets						$	14,461					$	14,246
Finance						Property, plant and equipment, net of depreciation						2,909						2,945
Total leased ROU assets												$	17,370					$	17,191
Liabilities
Current
Operating						Other accrued liabilities						$	4,737					$	4,369
Finance						Current portion of finance lease obligations						332						327
Noncurrent
Operating						Non-current liabilities						9,966						10,041
Finance						Finance lease obligations						293						378
Total lease liabilities												$	15,328					$	15,115

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

						Classification						Three Months Ended March 31, 2020						Three Months Ended March 31, 2019
Operating lease cost						Cost of sales, selling expenses and general and administrative expense						$	1,398					$	1,072
Finance lease cost
Amortization of ROU leased assets						Depreciation and amortization						36						36
Interest on lease liabilities						Interest expense						21						15
Net lease cost												$	1,455					$	1,123

Maturity of the Company’s lease liabilities as of March 31, 2020 is as follows (in thousands):

						Operating Leases						Finance Leases						Total
2020 (remainder)						$	4,032					$	271					$	4,303
2021						4,926						361						5,287
2022						2,965						30						2,995
2023						2,038						—						2,038
2024						1,007						—						1,007
Thereafter						1,247						—						1,247
Total lease payments						$	16,215					$	662					$	16,877
Less: interest						1,512						37
Present value of lease payments						$	14,703					$	625

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:

						March 31, 2020						December 31, 2019
Weighted average remaining lease term (years)
Operating leases						3.9						4.0
Finance leases						1.8						2.1
Weighted average discount rate
Operating leases						5.04		%				5.17		%
Finance leases						6.16		%				6.16		%

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

						Three Months Ended March 31, 2020						Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases						$	1,377					$	1,038
Operating cash flows from finance leases						$	10					$	15
Financing cash flows from finance leases						$	80					$	75

LEASES

LEASESThe 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 at 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. During the three months ended March 31, 2020, leased assets obtained in exchange for new operating lease liabilities totaled approximately $1.5 million. As of March 31, 2020, leases that the Company has signed but have not yet commenced are immaterial.

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

						Classification						March 31, 2020						December 31, 2019
Right-of-Use Assets
Operating						Other assets						$	14,461					$	14,246
Finance						Property, plant and equipment, net of depreciation						2,909						2,945
Total leased ROU assets												$	17,370					$	17,191
Liabilities
Current
Operating						Other accrued liabilities						$	4,737					$	4,369
Finance						Current portion of finance lease obligations						332						327
Noncurrent
Operating						Non-current liabilities						9,966						10,041
Finance						Finance lease obligations						293						378
Total lease liabilities												$	15,328					$	15,115

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

						Classification						Three Months Ended March 31, 2020						Three Months Ended March 31, 2019
Operating lease cost						Cost of sales, selling expenses and general and administrative expense						$	1,398					$	1,072
Finance lease cost
Amortization of ROU leased assets						Depreciation and amortization						36						36
Interest on lease liabilities						Interest expense						21						15
Net lease cost												$	1,455					$	1,123

Maturity of the Company’s lease liabilities as of March 31, 2020 is as follows (in thousands):

						Operating Leases						Finance Leases						Total
2020 (remainder)						$	4,032					$	271					$	4,303
2021						4,926						361						5,287
2022						2,965						30						2,995
2023						2,038						—						2,038
2024						1,007						—						1,007
Thereafter						1,247						—						1,247
Total lease payments						$	16,215					$	662					$	16,877
Less: interest						1,512						37
Present value of lease payments						$	14,703					$	625

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:

						March 31, 2020						December 31, 2019
Weighted average remaining lease term (years)
Operating leases						3.9						4.0
Finance leases						1.8						2.1
Weighted average discount rate
Operating leases						5.04		%				5.17		%
Finance leases						6.16		%				6.16		%

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

						Three Months Ended March 31, 2020						Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases						$	1,377					$	1,038
Operating cash flows from finance leases						$	10					$	15
Financing cash flows from finance leases						$	80					$	75

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

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

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