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Rental Expense And Contractual Commitments | 12 Months Ended
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Dec. 31, 2019
Leases, Operating [Abstract] |
Rental Expense And Contractual Commitments | Tredegar has various lease agreements with terms up to 12 years, including leases of real estate, office equipment and vehicles. Some leases include options to purchase the leased asset, terminate the agreement or extend the term of the agreement for one or more years. These options are included in the lease term when it is reasonably certain that the option will be exercised. At inception, the Company determines if an arrangement contains a lease and whether that lease meets the classification criteria of a finance or operating lease. The Company has elected to not record short-term leases with an original lease term of one year or less in the consolidated balance sheet. To the extent such leases contain renewal options that the Company intends to exercise, the related ROU asset and lease liability are included in the consolidated balance sheet. Some of the Company’s lease arrangements contain lease components (e.g. minimum rent payments) and non-lease components (e.g. maintenance, labor charges, etc.). The Company generally accounts for the lease and non-lease components as a single lease component. Certain of the Company’s lease agreements include rental payments that are adjusted periodically for an index or rate. The leases are initially measured using the projected payments adjusted for the index or rate in effect at the commencement date. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating Leases Operating leases are included in “Right-of-use lease assets”, “Lease liabilities - short-term” and “Lease liabilities - long-term” on the consolidated balance sheets. These assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the lease term using the Company’s secured incremental borrowing rates, adjusted for term and geographic location using country-based swap rates. After reviewing new lease contracts in 2019 and the lease contracts in the implementation effort, the Company found no instance where it could readily determine the rate implicit in the lease. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Variable lease expense is recognized in the period in which the obligation for those payments is incurred. Depending upon the specific use of the ROU asset, lease expense is included in the “Cost of goods sold”, “Freight”, “Selling, general and administrative”, and “Research and development” line items on the consolidated statements of income. Lease income is not material to the results of operations for the year ended December 31, 2019. The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s operating leases as of December 31, 2019:
(In thousands) |  | As of December 31, 2019
Maturity of Lease Liabilities | Future Lease Payments
2020 |  | $ | 3,820 |
2021 |  | 3,589 |
2022 |  | 2,622 |
2023 |  | 2,425 |
2024 |  | 2,405 |
Thereafter |  | 9,786 |
Total undiscounted operating lease payments |  | 24,647 |
Less: Imputed interest |  | 3,956 |
Present value of operating lease liabilities |  | $ | 20,691 |
Balance Sheet Classification |  |
Lease liabilities, short-term |  | $ | 3,002 |
Lease liabilities, long-term |  | 17,689 |
Total operating lease liabilities |  | $ | 20,691 |
Other Information: |  |
Weighted-average remaining lease term for operating leases |  | 8 Years |
Weighted-average discount rate for operating leases |  | 4.32 | %
Rental expense was $5.2 million in 2018 and $4.4 million in 2017. Rental commitments under all noncancellable leases as of December 31, 2018, were as follows:
(In thousands) |
2019 | $ | 4,445 |
2020 | 4,007 |
2021 | 3,591 |
2022 | 2,391 |
2023 | 1,245 |
Remainder | 2,630 |
Total minimum lease payments | $ | 18,309 |
Cash Flows An initial right-of-use asset of $21 million was recognized as a non-cash asset addition and an initial lease liability of $22 million was recognized as a non-cash liability addition with the adoption of the new lease accounting standard. Operating Lease Costs Operating lease costs were $5.6 million in 2019. These costs are primarily related to long-term operating leases, but also include amounts for variable leases and short-term leases.

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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- References No definition available. + Details
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