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Leases | 12 Months Ended
--- | ---
Dec. 31, 2022
Leases [Abstract] |
Leases | Leases The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's lease portfolio relates to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital") that was entered into in 2016 and amended with the American Stainless acquisition in 2019 as well as the sale of land at the Munhall facility in 2020. As of December 31, 2022, operating lease liabilities related to the master lease agreement with Store Capital totaled $31.5 million, or 94% of the total lease liabilities on the consolidated balance sheet. As discussed in Note 2, on October 22, 2021, the Company completed the DanChem acquisition. As part of the acquisition, the Company assumed certain operating and finance leases. As of December 31, 2022, the balances associated with these leases in the consolidated balance sheet include operating lease assets and liabilities of $0.3 million and finance lease assets and liabilities of $2.9 million. During the year ended December 31, 2022, the Company entered into new operating lease agreements resulting in an additional $0.2 million of right-of-use assets and lease liabilities. Balance Sheet Presentation Operating and finance lease amounts included in the consolidated balance sheet are as follows (in thousands):
|  |  |  | Year Ended December 31,
Classification |  | Financial Statement Line Item |  | 2022 |  | 2021
Operating lease assets |  | Right-of-use assets, operating leases |  | $ | 29,224 |  |  | $ | 30,811 |
Finance lease assets |  | Property, plant and equipment, net |  | 1,494 |  |  | 1,640 |
Current liabilities |  | Current portion of lease liabilities, operating leases |  | 1,056 |  |  | 1,104 |
Current liabilities |  | Current portion of lease liabilities, finance leases |  | 280 |  |  | 233 |
Non-current liabilities |  | Non-current portion of lease liabilities, operating leases |  | 30,911 |  |  | 32,059 |
Non-current liabilities |  | Non-current portion of lease liabilities, finance leases |  | $ | 1,242 |  |  | $ | 1,414 |
Total Lease Cost Individual components of the total lease cost incurred by the Company are as follows:
| Year Ended December 31,
(in thousands) | 2022 |  | 2021
Operating lease cost 1 | $ | 4,151 |  |  | $ | 4,099 |
Finance lease cost: |  |  |
Reduction in carrying amount of right-of-use assets | 273 |  |  | 100 |
Interest on finance lease liabilities | 36 |  |  | 11 |
Sublease income | (187) |  |  | — |
Total lease cost | $ | 4,273 |  |  | $ | 4,210 |
1 Includes short term leases, which are immaterial Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the consolidated statements of income. Maturity of Leases The amounts of undiscounted future minimum lease payments under leases as of December 31, 2022 are as follows:
(in thousands) | Operating |  | Finance
2023 | $ | 3,645 |  |  | $ | 311 |
2024 | 3,667 |  |  | 257 |
2025 | 3,687 |  |  | 244 |
2026 | 3,703 |  |  | 244 |
2027 | 3,765 |  |  | 244 |
Thereafter | 36,151 |  |  | 327 |
Total undiscounted minimum future lease payments | 54,618 |  |  | 1,627 |
Imputed Interest | (22,651) |  |  | (105) |
Total lease liabilities | $ | 31,967 |  |  | $ | 1,522 |
Lease Term and Discount Rate
| Year Ended December 31,
| 2022 |  | 2021
Weighted-average discount rate |  |  |
Operating leases | 8.31 | % |  | 8.30 | %
Finance leases | 2.32 | % |  | 2.27 | %
Weighted-average remaining lease term |  |  |
Operating leases | 13.61 years |  | 14.43 years
Finance leases | 6.06 years |  | 7.07 years
Leases | Leases The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's lease portfolio relates to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital") that was entered into in 2016 and amended with the American Stainless acquisition in 2019 as well as the sale of land at the Munhall facility in 2020. As of December 31, 2022, operating lease liabilities related to the master lease agreement with Store Capital totaled $31.5 million, or 94% of the total lease liabilities on the consolidated balance sheet. As discussed in Note 2, on October 22, 2021, the Company completed the DanChem acquisition. As part of the acquisition, the Company assumed certain operating and finance leases. As of December 31, 2022, the balances associated with these leases in the consolidated balance sheet include operating lease assets and liabilities of $0.3 million and finance lease assets and liabilities of $2.9 million. During the year ended December 31, 2022, the Company entered into new operating lease agreements resulting in an additional $0.2 million of right-of-use assets and lease liabilities. Balance Sheet Presentation Operating and finance lease amounts included in the consolidated balance sheet are as follows (in thousands):
|  |  |  | Year Ended December 31,
Classification |  | Financial Statement Line Item |  | 2022 |  | 2021
Operating lease assets |  | Right-of-use assets, operating leases |  | $ | 29,224 |  |  | $ | 30,811 |
Finance lease assets |  | Property, plant and equipment, net |  | 1,494 |  |  | 1,640 |
Current liabilities |  | Current portion of lease liabilities, operating leases |  | 1,056 |  |  | 1,104 |
Current liabilities |  | Current portion of lease liabilities, finance leases |  | 280 |  |  | 233 |
Non-current liabilities |  | Non-current portion of lease liabilities, operating leases |  | 30,911 |  |  | 32,059 |
Non-current liabilities |  | Non-current portion of lease liabilities, finance leases |  | $ | 1,242 |  |  | $ | 1,414 |
Total Lease Cost Individual components of the total lease cost incurred by the Company are as follows:
| Year Ended December 31,
(in thousands) | 2022 |  | 2021
Operating lease cost 1 | $ | 4,151 |  |  | $ | 4,099 |
Finance lease cost: |  |  |
Reduction in carrying amount of right-of-use assets | 273 |  |  | 100 |
Interest on finance lease liabilities | 36 |  |  | 11 |
Sublease income | (187) |  |  | — |
Total lease cost | $ | 4,273 |  |  | $ | 4,210 |
1 Includes short term leases, which are immaterial Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the consolidated statements of income. Maturity of Leases The amounts of undiscounted future minimum lease payments under leases as of December 31, 2022 are as follows:
(in thousands) | Operating |  | Finance
2023 | $ | 3,645 |  |  | $ | 311 |
2024 | 3,667 |  |  | 257 |
2025 | 3,687 |  |  | 244 |
2026 | 3,703 |  |  | 244 |
2027 | 3,765 |  |  | 244 |
Thereafter | 36,151 |  |  | 327 |
Total undiscounted minimum future lease payments | 54,618 |  |  | 1,627 |
Imputed Interest | (22,651) |  |  | (105) |
Total lease liabilities | $ | 31,967 |  |  | $ | 1,522 |
Lease Term and Discount Rate
| Year Ended December 31,
| 2022 |  | 2021
Weighted-average discount rate |  |  |
Operating leases | 8.31 | % |  | 8.30 | %
Finance leases | 2.32 | % |  | 2.27 | %
Weighted-average remaining lease term |  |  |
Operating leases | 13.61 years |  | 14.43 years
Finance leases | 6.06 years |  | 7.07 years
Leases | Leases The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's lease portfolio relates to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital") that was entered into in 2016 and amended with the American Stainless acquisition in 2019 as well as the sale of land at the Munhall facility in 2020. As of December 31, 2022, operating lease liabilities related to the master lease agreement with Store Capital totaled $31.5 million, or 94% of the total lease liabilities on the consolidated balance sheet. As discussed in Note 2, on October 22, 2021, the Company completed the DanChem acquisition. As part of the acquisition, the Company assumed certain operating and finance leases. As of December 31, 2022, the balances associated with these leases in the consolidated balance sheet include operating lease assets and liabilities of $0.3 million and finance lease assets and liabilities of $2.9 million. During the year ended December 31, 2022, the Company entered into new operating lease agreements resulting in an additional $0.2 million of right-of-use assets and lease liabilities. Balance Sheet Presentation Operating and finance lease amounts included in the consolidated balance sheet are as follows (in thousands):
|  |  |  | Year Ended December 31,
Classification |  | Financial Statement Line Item |  | 2022 |  | 2021
Operating lease assets |  | Right-of-use assets, operating leases |  | $ | 29,224 |  |  | $ | 30,811 |
Finance lease assets |  | Property, plant and equipment, net |  | 1,494 |  |  | 1,640 |
Current liabilities |  | Current portion of lease liabilities, operating leases |  | 1,056 |  |  | 1,104 |
Current liabilities |  | Current portion of lease liabilities, finance leases |  | 280 |  |  | 233 |
Non-current liabilities |  | Non-current portion of lease liabilities, operating leases |  | 30,911 |  |  | 32,059 |
Non-current liabilities |  | Non-current portion of lease liabilities, finance leases |  | $ | 1,242 |  |  | $ | 1,414 |
Total Lease Cost Individual components of the total lease cost incurred by the Company are as follows:
| Year Ended December 31,
(in thousands) | 2022 |  | 2021
Operating lease cost 1 | $ | 4,151 |  |  | $ | 4,099 |
Finance lease cost: |  |  |
Reduction in carrying amount of right-of-use assets | 273 |  |  | 100 |
Interest on finance lease liabilities | 36 |  |  | 11 |
Sublease income | (187) |  |  | — |
Total lease cost | $ | 4,273 |  |  | $ | 4,210 |
1 Includes short term leases, which are immaterial Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the consolidated statements of income. Maturity of Leases The amounts of undiscounted future minimum lease payments under leases as of December 31, 2022 are as follows:
(in thousands) | Operating |  | Finance
2023 | $ | 3,645 |  |  | $ | 311 |
2024 | 3,667 |  |  | 257 |
2025 | 3,687 |  |  | 244 |
2026 | 3,703 |  |  | 244 |
2027 | 3,765 |  |  | 244 |
Thereafter | 36,151 |  |  | 327 |
Total undiscounted minimum future lease payments | 54,618 |  |  | 1,627 |
Imputed Interest | (22,651) |  |  | (105) |
Total lease liabilities | $ | 31,967 |  |  | $ | 1,522 |
Lease Term and Discount Rate
| Year Ended December 31,
| 2022 |  | 2021
Weighted-average discount rate |  |  |
Operating leases | 8.31 | % |  | 8.30 | %
Finance leases | 2.32 | % |  | 2.27 | %
Weighted-average remaining lease term |  |  |
Operating leases | 13.61 years |  | 14.43 years
Finance leases | 6.06 years |  | 7.07 years

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