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LEASES
 12 Months Ended
Dec. 31, 2021
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, 2021 were approximately $4.6 million. As of December 31, 2021, obligations related to leases that the Company has executed but have not yet commenced were insignificant.
Leased assets and liabilities included within the Consolidated Balance Sheets consist of the following (in thousands):
ClassificationDecember 31, 2021December 31, 2020
Right-of-Use Assets
OperatingOther assets$11,379 $10,842 
FinanceProperty, plant and equipment, net2,658 2,802 
Total leased ROU assets$14,037 $13,644 
Liabilities
Current
OperatingOther accrued liabilities$3,507 $4,117 
FinanceCurrent portion of finance lease obligations59 348 
Noncurrent
OperatingNon-current liabilities7,872 6,967 
FinanceFinance lease obligations— 30 
Total lease liabilities$11,438 $11,462 
Lease costs included in the Consolidated Statements of Operations consist of the following (in thousands):
ClassificationTwelve Months Ended December 31, 2021Twelve Months Ended December 31, 2020
Operating lease costCost of sales, selling expenses, and general and administrative expense$5,031 $5,116 
Finance lease cost
Amortization of ROU leased assetsDepreciation and amortization within Cost of sales144 144 
Interest on lease liabilitiesInterest expense55 53 
Net lease cost$5,230 $5,313 
Maturity of the Company’s lease liabilities for leases that have commenced is as follows (in thousands):
Operating LeasesFinance LeasesTotal
2022$3,992 $59 $4,051 
20233,196 — 3,196 
20242,081 — 2,081 
20251,369 — 1,369 
2026890 — 890 
Thereafter1,152 — 1,152 
Total lease payments$12,680 $59 $12,739 
Less: interest1,301 — 
Present value of lease payments$11,379 $59 
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, 2021December 31, 2020
Weighted average remaining lease term (years)
Operating leases4.33.6
Finance leases0.11.1
Weighted average discount rate
Operating leases5.12 %5.07 %
Finance leases6.16 %6.16 %
Lease costs included in the Consolidated Statements of Cash Flows are as follows (in thousands):
Twelve Months Ended December 31, 2021Twelve Months Ended December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$4,847 $5,091 
Operating cash flows from finance leases$13 $34 
Financing cash flows from finance leases$319 $327 
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, 2021 were approximately $4.6 million. As of December 31, 2021, obligations related to leases that the Company has executed but have not yet commenced were insignificant.
Leased assets and liabilities included within the Consolidated Balance Sheets consist of the following (in thousands):
ClassificationDecember 31, 2021December 31, 2020
Right-of-Use Assets
OperatingOther assets$11,379 $10,842 
FinanceProperty, plant and equipment, net2,658 2,802 
Total leased ROU assets$14,037 $13,644 
Liabilities
Current
OperatingOther accrued liabilities$3,507 $4,117 
FinanceCurrent portion of finance lease obligations59 348 
Noncurrent
OperatingNon-current liabilities7,872 6,967 
FinanceFinance lease obligations— 30 
Total lease liabilities$11,438 $11,462 
Lease costs included in the Consolidated Statements of Operations consist of the following (in thousands):
ClassificationTwelve Months Ended December 31, 2021Twelve Months Ended December 31, 2020
Operating lease costCost of sales, selling expenses, and general and administrative expense$5,031 $5,116 
Finance lease cost
Amortization of ROU leased assetsDepreciation and amortization within Cost of sales144 144 
Interest on lease liabilitiesInterest expense55 53 
Net lease cost$5,230 $5,313 
Maturity of the Company’s lease liabilities for leases that have commenced is as follows (in thousands):
Operating LeasesFinance LeasesTotal
2022$3,992 $59 $4,051 
20233,196 — 3,196 
20242,081 — 2,081 
20251,369 — 1,369 
2026890 — 890 
Thereafter1,152 — 1,152 
Total lease payments$12,680 $59 $12,739 
Less: interest1,301 — 
Present value of lease payments$11,379 $59 
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, 2021December 31, 2020
Weighted average remaining lease term (years)
Operating leases4.33.6
Finance leases0.11.1
Weighted average discount rate
Operating leases5.12 %5.07 %
Finance leases6.16 %6.16 %
Lease costs included in the Consolidated Statements of Cash Flows are as follows (in thousands):
Twelve Months Ended December 31, 2021Twelve Months Ended December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$4,847 $5,091 
Operating cash flows from finance leases$13 $34 
Financing cash flows from finance leases$319 $327