XML 27 R17.htm IDEA: XBRL DOCUMENT v3.22.2.2

LEASES

9 Months Ended

Sep. 30, 2022

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 Accounting Standards Codification (“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 spaces, 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 and nine months ended September 30, 2022, leased assets obtained in exchange for new operating lease liabilities totaled approximately $6.6 million and $16.4 million, respectively. During the three and nine months ended September 30, 2021, leased assets obtained in exchange for new operating lease liabilities totaled approximately $2.3 million and $4.3 million, respectively. As of September 30, 2022, obligations related to operating leases that the Company has executed but have not yet commenced totaled approximately $0.2 million on a non-discounted basis, which the Company generally expects to be recognized over the next five years.

During the three and nine months ended September 30, 2022, the Company entered into sale-leaseback-sublease transactions. Amounts related to these transactions during the three and nine months ended September 30, 2022 were insignificant. In addition, certain of the transactions occurred with a related party—such transactions were at market value and arm’s length.

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

						Classification						September 30, 2022						December 31, 2021
Right-of-Use Assets
Operating						Other assets						$	24,429					$	11,379
Finance						Property, plant and equipment, net of depreciation						—						2,658
Total leased ROU assets												$	24,429					$	14,037
Liabilities
Current
Operating						Other accrued liabilities						$	6,229					$	3,507
Finance						Current portion of finance lease obligations						—						59
Noncurrent
Operating						Non-current liabilities						18,200						7,872
Finance						Finance lease obligations						—						—
Total lease liabilities												$	24,429					$	11,438

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

						Classification						Three Months Ended September 30, 2022						Three Months Ended September 30, 2021
Operating lease cost						Cost of sales, selling expenses and general and administrative expense						$	1,559					$	1,329
Finance lease cost
Amortization of ROU leased assets						Depreciation and amortization within Cost of sales						—						36
Interest on lease liabilities						Interest expense						—						6
Net lease cost												$	1,559					$	1,371

						Classification						Nine Months Ended September 30, 2022						Nine Months Ended September 30, 2021
Operating lease cost						Cost of sales, selling expenses and general and administrative expense						$	3,877					$	3,813
Finance lease cost
Amortization of ROU leased assets						Depreciation and amortization within Cost of sales						36						108
Interest on lease liabilities						Interest expense						1						21
Net lease cost												$	3,914					$	3,942

Maturity of the Company’s lease liabilities as of September 30, 2022 is as follows (in thousands):

						Operating Leases						Finance Leases						Total
2022 (remainder)						$	1,918					$	—					$	1,918
2023						7,046						—						7,046
2024						5,934						—						5,934
2025						4,872						—						4,872
2026						4,338						—						4,338
Thereafter						3,104						—						3,104
Total lease payments						$	27,212					$	—					$	27,212
Less: interest						2,783						—
Present value of lease payments						$	24,429					$	—

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:

						September 30, 2022						December 31, 2021
Weighted average remaining lease term (years)
Operating leases						4.2						4.3
Finance leases						0.0						0.1
Weighted average discount rate
Operating leases						4.96		%				5.12		%
Finance leases						—		%				6.16		%

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

						Nine Months Ended September 30, 2022						Nine Months Ended September 30, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases						$	3,917					$	3,660
Operating cash flows from finance leases						$	1					$	12
Financing cash flows from finance leases						$	59					$	259

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 Accounting Standards Codification (“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 spaces, 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 and nine months ended September 30, 2022, leased assets obtained in exchange for new operating lease liabilities totaled approximately $6.6 million and $16.4 million, respectively. During the three and nine months ended September 30, 2021, leased assets obtained in exchange for new operating lease liabilities totaled approximately $2.3 million and $4.3 million, respectively. As of September 30, 2022, obligations related to operating leases that the Company has executed but have not yet commenced totaled approximately $0.2 million on a non-discounted basis, which the Company generally expects to be recognized over the next five years.

During the three and nine months ended September 30, 2022, the Company entered into sale-leaseback-sublease transactions. Amounts related to these transactions during the three and nine months ended September 30, 2022 were insignificant. In addition, certain of the transactions occurred with a related party—such transactions were at market value and arm’s length.

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

						Classification						September 30, 2022						December 31, 2021
Right-of-Use Assets
Operating						Other assets						$	24,429					$	11,379
Finance						Property, plant and equipment, net of depreciation						—						2,658
Total leased ROU assets												$	24,429					$	14,037
Liabilities
Current
Operating						Other accrued liabilities						$	6,229					$	3,507
Finance						Current portion of finance lease obligations						—						59
Noncurrent
Operating						Non-current liabilities						18,200						7,872
Finance						Finance lease obligations						—						—
Total lease liabilities												$	24,429					$	11,438

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

						Classification						Three Months Ended September 30, 2022						Three Months Ended September 30, 2021
Operating lease cost						Cost of sales, selling expenses and general and administrative expense						$	1,559					$	1,329
Finance lease cost
Amortization of ROU leased assets						Depreciation and amortization within Cost of sales						—						36
Interest on lease liabilities						Interest expense						—						6
Net lease cost												$	1,559					$	1,371

						Classification						Nine Months Ended September 30, 2022						Nine Months Ended September 30, 2021
Operating lease cost						Cost of sales, selling expenses and general and administrative expense						$	3,877					$	3,813
Finance lease cost
Amortization of ROU leased assets						Depreciation and amortization within Cost of sales						36						108
Interest on lease liabilities						Interest expense						1						21
Net lease cost												$	3,914					$	3,942

Maturity of the Company’s lease liabilities as of September 30, 2022 is as follows (in thousands):

						Operating Leases						Finance Leases						Total
2022 (remainder)						$	1,918					$	—					$	1,918
2023						7,046						—						7,046
2024						5,934						—						5,934
2025						4,872						—						4,872
2026						4,338						—						4,338
Thereafter						3,104						—						3,104
Total lease payments						$	27,212					$	—					$	27,212
Less: interest						2,783						—
Present value of lease payments						$	24,429					$	—

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:

						September 30, 2022						December 31, 2021
Weighted average remaining lease term (years)
Operating leases						4.2						4.3
Finance leases						0.0						0.1
Weighted average discount rate
Operating leases						4.96		%				5.12		%
Finance leases						—		%				6.16		%

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

						Nine Months Ended September 30, 2022						Nine Months Ended September 30, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases						$	3,917					$	3,660
Operating cash flows from finance leases						$	1					$	12
Financing cash flows from finance leases						$	59					$	259

X

- References

No definition available.

+ Details

Name:	us-gaap_LeasesAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- 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 https://asc.fasb.org/subtopic&trid=77888251

+ Details

Name:	us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

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

+ Details

Name:	us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration