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LEASES

12 Months Ended

Dec. 31, 2020

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, 2020 were approximately $2.2 million. As of December 31, 2020 obligations related to leases that the Company has executed but have not yet commenced totaled approximately $1.7 million on a non-discounted basis, which the Company generally expects to be recognized over the next 10 years.

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

						Classification						December 31, 2020						December 31, 2019
Right-of-Use Assets
Operating						Other assets						$	10,842					$	14,246
Finance						Property, plant and equipment, net						2,802						2,945
Total leased ROU assets												$	13,644					$	17,191
Liabilities
Current
Operating						Other accrued liabilities						$	4,117					$	4,369
Finance						Current portion of finance lease obligations						348						327
Noncurrent
Operating						Non-current liabilities						6,967						10,041
Finance						Finance lease obligations						30						378
Total lease liabilities												$	11,462					$	15,115

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

						Classification						Twelve Months Ended December 31, 2020						Twelve Months Ended December 31, 2019
Operating lease cost						Cost of sales, selling expenses and general and administrative expense						$	5,116					$	5,172
Finance lease cost
Amortization of ROU leased assets						Depreciation and amortization within Cost of sales						144						144
Interest on lease liabilities						Interest expense						53						65
Net lease cost												$	5,313					$	5,381

Maturity of the Company’s lease liabilities for leases that have commenced is as follows (in thousands):

						Operating Leases						Finance Leases						Total
2021						$	4,569					$	361					$	4,930
2022						3,040						30						3,070
2023						2,185						—						2,185
2024						1,085						—						1,085
2025						537						—						537
Thereafter						721						—						721
Total lease payments						$	12,137					$	391					$	12,528
Less: interest						1,053						13
Present value of lease payments						$	11,084					$	378

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, 2020						December 31, 2019
Weighted average remaining lease term (years)
Operating leases						3.6						4.0
Finance leases						1.1						2.1
Weighted average discount rate
Operating leases						5.07		%				5.17		%
Finance leases						6.16		%				6.16		%

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

						Twelve Months Ended December 31, 2020						Twelve Months Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases						$	5,091					$	5,016
Operating cash flows from finance leases						$	34					$	53
Financing cash flows from finance leases						$	327					$	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, 2020 were approximately $2.2 million. As of December 31, 2020 obligations related to leases that the Company has executed but have not yet commenced totaled approximately $1.7 million on a non-discounted basis, which the Company generally expects to be recognized over the next 10 years.

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

						Classification						December 31, 2020						December 31, 2019
Right-of-Use Assets
Operating						Other assets						$	10,842					$	14,246
Finance						Property, plant and equipment, net						2,802						2,945
Total leased ROU assets												$	13,644					$	17,191
Liabilities
Current
Operating						Other accrued liabilities						$	4,117					$	4,369
Finance						Current portion of finance lease obligations						348						327
Noncurrent
Operating						Non-current liabilities						6,967						10,041
Finance						Finance lease obligations						30						378
Total lease liabilities												$	11,462					$	15,115

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

						Classification						Twelve Months Ended December 31, 2020						Twelve Months Ended December 31, 2019
Operating lease cost						Cost of sales, selling expenses and general and administrative expense						$	5,116					$	5,172
Finance lease cost
Amortization of ROU leased assets						Depreciation and amortization within Cost of sales						144						144
Interest on lease liabilities						Interest expense						53						65
Net lease cost												$	5,313					$	5,381

Maturity of the Company’s lease liabilities for leases that have commenced is as follows (in thousands):

						Operating Leases						Finance Leases						Total
2021						$	4,569					$	361					$	4,930
2022						3,040						30						3,070
2023						2,185						—						2,185
2024						1,085						—						1,085
2025						537						—						537
Thereafter						721						—						721
Total lease payments						$	12,137					$	391					$	12,528
Less: interest						1,053						13
Present value of lease payments						$	11,084					$	378

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, 2020						December 31, 2019
Weighted average remaining lease term (years)
Operating leases						3.6						4.0
Finance leases						1.1						2.1
Weighted average discount rate
Operating leases						5.07		%				5.17		%
Finance leases						6.16		%				6.16		%

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

						Twelve Months Ended December 31, 2020						Twelve Months Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases						$	5,091					$	5,016
Operating cash flows from finance leases						$	34					$	53
Financing cash flows from finance leases						$	327					$	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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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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