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Leases
 6 Months Ended
Jun. 30, 2023
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 June 30, 2023, operating lease liabilities related to the master lease agreement with Store Capital totaled $31.1 million, or 94% of the total lease liabilities on the consolidated balance sheet.
During the three months ended June 30, 2023, the Company entered into new finance lease agreements resulting in immaterial additional right-of-use assets and lease liabilities. During the six months ended June 30, 2023, the Company entered into new finance lease agreements resulting in an additional $0.3 million of right-of-use assets and lease liabilities.
Balance Sheet Presentation
Operating and finance lease amounts from continuing operations included in the unaudited condensed consolidated balance sheet are as follows (in thousands):
ClassificationFinancial Statement Line ItemJune 30, 2023December 31, 2022
Long-term AssetsRight-of-use assets, operating leases$28,509 $29,198 
Long-term AssetsProperty, plant and equipment1,554 1,494 
Current liabilitiesCurrent portion of lease liabilities, operating leases1,093 1,029 
Current liabilitiesCurrent portion of lease liabilities, finance leases283 280 
Non-current liabilitiesNon-current portion of lease liabilities, operating leases30,338 30,911 
Non-current liabilitiesNon-current portion of lease liabilities, finance leases1,313 1,242 
Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2023202220232022
Operating lease cost1
$997 $1,043 $1,996 $2,091 
Finance lease cost:
Amortization of right-of-use assets86 69 164 136 
Interest on finance lease liabilities24 9 38 18 
Sublease income(91)(32)(182)(65)
Total lease cost$1,016 $1,089 $2,016 $2,180 
1Includes 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 unaudited condensed consolidated statements of income (loss).
Future expected cash receipts from the Company's sublease as of June 30, 2023 are as follows:
(in thousands)Sublease Receipts
Remainder of 2023$182 
2024370 
2025377 
2026385 
2027392 
Thereafter3,786 
Total sublease receipts$5,492 
Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases in continuing operations as of June 30, 2023 are as follows:
(in thousands)OperatingFinance
Remainder of 2023$1,815 $211 
20243,667 343 
20253,687 326 
20263,703 326 
20273,765 326 
Thereafter36,152 354 
Total undiscounted minimum future lease payments52,789 1,886 
Imputed interest(21,358)(290)
Present value of lease liabilities$31,431 $1,596 
Lease Term and Discount Rate
Weighted-average remaining lease termJune 30, 2023December 31, 2022
Operating leases13.14 years13.61 years
Finance leases5.50 years6.06 years
Weighted-average discount rate
Operating leases8.32 %8.31 %
Finance leases5.87 %2.32 %
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 June 30, 2023, operating lease liabilities related to the master lease agreement with Store Capital totaled $31.1 million, or 94% of the total lease liabilities on the consolidated balance sheet.
During the three months ended June 30, 2023, the Company entered into new finance lease agreements resulting in immaterial additional right-of-use assets and lease liabilities. During the six months ended June 30, 2023, the Company entered into new finance lease agreements resulting in an additional $0.3 million of right-of-use assets and lease liabilities.
Balance Sheet Presentation
Operating and finance lease amounts from continuing operations included in the unaudited condensed consolidated balance sheet are as follows (in thousands):
ClassificationFinancial Statement Line ItemJune 30, 2023December 31, 2022
Long-term AssetsRight-of-use assets, operating leases$28,509 $29,198 
Long-term AssetsProperty, plant and equipment1,554 1,494 
Current liabilitiesCurrent portion of lease liabilities, operating leases1,093 1,029 
Current liabilitiesCurrent portion of lease liabilities, finance leases283 280 
Non-current liabilitiesNon-current portion of lease liabilities, operating leases30,338 30,911 
Non-current liabilitiesNon-current portion of lease liabilities, finance leases1,313 1,242 
Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2023202220232022
Operating lease cost1
$997 $1,043 $1,996 $2,091 
Finance lease cost:
Amortization of right-of-use assets86 69 164 136 
Interest on finance lease liabilities24 9 38 18 
Sublease income(91)(32)(182)(65)
Total lease cost$1,016 $1,089 $2,016 $2,180 
1Includes 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 unaudited condensed consolidated statements of income (loss).
Future expected cash receipts from the Company's sublease as of June 30, 2023 are as follows:
(in thousands)Sublease Receipts
Remainder of 2023$182 
2024370 
2025377 
2026385 
2027392 
Thereafter3,786 
Total sublease receipts$5,492 
Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases in continuing operations as of June 30, 2023 are as follows:
(in thousands)OperatingFinance
Remainder of 2023$1,815 $211 
20243,667 343 
20253,687 326 
20263,703 326 
20273,765 326 
Thereafter36,152 354 
Total undiscounted minimum future lease payments52,789 1,886 
Imputed interest(21,358)(290)
Present value of lease liabilities$31,431 $1,596 
Lease Term and Discount Rate
Weighted-average remaining lease termJune 30, 2023December 31, 2022
Operating leases13.14 years13.61 years
Finance leases5.50 years6.06 years
Weighted-average discount rate
Operating leases8.32 %8.31 %
Finance leases5.87 %2.32 %
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 June 30, 2023, operating lease liabilities related to the master lease agreement with Store Capital totaled $31.1 million, or 94% of the total lease liabilities on the consolidated balance sheet.
During the three months ended June 30, 2023, the Company entered into new finance lease agreements resulting in immaterial additional right-of-use assets and lease liabilities. During the six months ended June 30, 2023, the Company entered into new finance lease agreements resulting in an additional $0.3 million of right-of-use assets and lease liabilities.
Balance Sheet Presentation
Operating and finance lease amounts from continuing operations included in the unaudited condensed consolidated balance sheet are as follows (in thousands):
ClassificationFinancial Statement Line ItemJune 30, 2023December 31, 2022
Long-term AssetsRight-of-use assets, operating leases$28,509 $29,198 
Long-term AssetsProperty, plant and equipment1,554 1,494 
Current liabilitiesCurrent portion of lease liabilities, operating leases1,093 1,029 
Current liabilitiesCurrent portion of lease liabilities, finance leases283 280 
Non-current liabilitiesNon-current portion of lease liabilities, operating leases30,338 30,911 
Non-current liabilitiesNon-current portion of lease liabilities, finance leases1,313 1,242 
Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2023202220232022
Operating lease cost1
$997 $1,043 $1,996 $2,091 
Finance lease cost:
Amortization of right-of-use assets86 69 164 136 
Interest on finance lease liabilities24 9 38 18 
Sublease income(91)(32)(182)(65)
Total lease cost$1,016 $1,089 $2,016 $2,180 
1Includes 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 unaudited condensed consolidated statements of income (loss).
Future expected cash receipts from the Company's sublease as of June 30, 2023 are as follows:
(in thousands)Sublease Receipts
Remainder of 2023$182 
2024370 
2025377 
2026385 
2027392 
Thereafter3,786 
Total sublease receipts$5,492 
Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases in continuing operations as of June 30, 2023 are as follows:
(in thousands)OperatingFinance
Remainder of 2023$1,815 $211 
20243,667 343 
20253,687 326 
20263,703 326 
20273,765 326 
Thereafter36,152 354 
Total undiscounted minimum future lease payments52,789 1,886 
Imputed interest(21,358)(290)
Present value of lease liabilities$31,431 $1,596 
Lease Term and Discount Rate
Weighted-average remaining lease termJune 30, 2023December 31, 2022
Operating leases13.14 years13.61 years
Finance leases5.50 years6.06 years
Weighted-average discount rate
Operating leases8.32 %8.31 %
Finance leases5.87 %2.32 %