XML 38 R21.htm IDEA: XBRL DOCUMENT
v3.20.4

Leases | 12 Months Ended
--- | ---
Dec. 31, 2020
Leases [Abstract] |
Leases | Leases We adopted ASC 842 on January 1, 2019, and elected the modified retrospective approach in which the new standard is applied to all leases existing at the date of adoption through a cumulative-effect adjustment of less than $0.1 million to accumulated deficit. Consequently, financial information is not updated, and the disclosures required under the new standard are not provided for periods prior to January 1, 2019. As part of the adoption, we elected the package of practical expedients, the short-term lease exemption, and the practical expedient to not separate lease and non-lease components. Accordingly, we accounted for our existing operating leases as operating leases under the new standard, without reassessing (a) whether the contracts contain a lease under ASC 842, (b) whether classification of the operating leases would be different in accordance with ASC 842, or (c) whether any unamortized initial direct costs would have met the definition of initial direct costs in ASC 842 at lease commencement. We determine whether an arrangement is a lease at inception. Right-of-use (“ROU”) lease assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. ROU lease assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. When the implicit rate is not readily determinable, we use the estimated incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Amortization of ROU lease assets is recognized in expense on a straight-line basis over the lease term. Short-term leases are leases having a term of twelve months or less. We recognize short-term leases on a straight-line basis and do not record a related lease asset or liability for such leases. Finance lease ROU assets consist primarily of equipment used in the manufacturing process with terms greater than two years to seven years. Operating lease ROU assets consist of the following: •Equipment used in the manufacturing process as well as office equipment with terms two years to five years; and •Manufacturing plants and office facilities with terms two years to twenty years. The following table presents components of lease expense:
|  |  |  | Years Ended December 31,
|  | Financial Statement Line Item |  | 2020 |  | 2019 |  |
Finance lease cost: |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  | Depreciation and amortization |  | $ | 1,272 |  |  | $ | 1,229 |  |  |
Interest expense |  | Interest expense |  | 192 |  |  | 226 |  |  |
Operating lease cost |  | Cost of sales and selling, general, and administrative expense |  | 8,396 |  |  | 9,108 |  |  |
Short-term lease cost (1) |  | Cost of sales and selling, general, and administrative expense |  | 591 |  |  | 479 |  |  |
Variable lease cost (2) |  | Cost of sales and selling, general, and administrative expense |  | 1 |  |  | 1 |  |  |
Total lease cost |  |  |  | $ | 10,452 |  |  | $ | 11,043 |  |  |
_______________________________ (1) Excludes expenses related to leases with a lease term of one month or less. (2) Represents changes to index-based lease payments. The following table presents lease-related assets and liabilities recorded on the balance sheet.
|  |  |  | As of December 31,
|  | Financial Statement Line Item |  | 2020 |  | 2019
Assets: |  |  |  |  |  |
Operating lease assets |  | Operating lease right-of-use assets |  | $ | 50,264 |  |  | $ | 45,452 |
Finance lease assets |  | Property, plant and equipment, net |  | 14,644 |  |  | 13,267 |
Total lease assets |  |  |  | $ | 64,908 |  |  | $ | 58,719 |
Liabilities: |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |
Operating lease liabilities |  | Current portion of operating lease liabilities |  | $ | 4,797 |  |  | $ | 4,288 |
Finance lease liabilities |  | Other current liabilities |  | 4,252 |  |  | 2,701 |
Non-current liabilities: |  |  |  |  |  |
Operating lease liabilities |  | Operating lease liabilities, net of current portion |  | 55,053 |  |  | 48,575 |
Finance lease liabilities |  | Other non-current liabilities |  | 6,858 |  |  | 7,911 |
Total lease liabilities |  |  |  | $ | 70,960 |  |  | $ | 63,475 |
The following table contains supplemental cash flow information related to leases of continuing operations.
|  | Years Ended December 31,
|  | 2020 |  | 2019 |  |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |
Operating cash flows used in finance leases |  | $ | 192 |  |  | $ | 226 |  |  |
Operating cash flows used in operating leases |  | 13,498 |  |  | 14,090 |  |  |
Financing cash flows used in finance leases |  | 2,018 |  |  | 3,156 |  |  |
Right-of-use assets obtained in exchange for new finance lease liabilities |  | $ | 728 |  |  | $ | 5,250 |  |  |
Right-of-use assets obtained in exchange for new operating lease liabilities (1) |  | $ | 8,682 |  |  | $ | 8,457 |  |  |
_______________________________ (1) Includes new leases, renewals, and modifications. As of December 31, 2020, the weighted average remaining lease term and weighted-average discount rate for finance and operating leases of continuing operations were as follows:
|  | Years Ended December 31,
|  | 2020 |  | 2019 |  |
Weighted-average remaining lease term - finance leases |  | 3.2 years |  | 4.0 years |  |
Weighted-average remaining lease term - operating leases |  | 11.7 years |  | 11.0 years |  |
Weighted-average discount rate - finance leases |  | 2.2 | % |  | 2.2 | % |  |
Weighted-average discount rate - operating leases |  | 7.0 | % |  | 5.7 | % |  |
The maturities of lease liabilities greater than twelve months as of December 31, 2020, is as follows:
|  | Operating Leases |  | Finance Leases
2021 |  | $ | 9,348 |  |  | $ | 4,442 |
2022 |  | 8,485 |  |  | 3,107 |
2023 |  | 7,370 |  |  | 2,365 |
2024 |  | 7,276 |  |  | 1,122 |
2025 |  | 7,194 |  |  | 223 |
Thereafter |  | 48,523 |  |  | 210 |
Total future minimum lease payments |  | 88,196 |  |  | 11,469 |
Less: imputed interest |  | 28,346 |  |  | 359 |
Total lease liabilities |  | $ | 59,850 |  |  | $ | 11,110 |
As of December 31, 2019, we had an operating lease commitment that had not yet commenced. In March 2020, the operating lease for the manufacturing facility commenced and requires us to pay a total of approximately $27.5 million base rent payments over the lease term of 15 years. We began making rent payments in the third quarter of 2020. In March 2020, we amended the lease of our corporate headquarters building to exit over half of the previously leased space and reduce annual base rent payments by approximately $1.3 million over the remaining lease term which ends in 2030. The amendment was accounted for as a lease modification, and the remeasurement of the lease resulted in an $8.1 million decrease in the operating lease right-of-use (“ROU”) asset, a $10.5 million decrease in the noncurrent portion of the operating lease liability, and a $0.6 million decrease in the current portion of the operating lease liability. The $3.0 million difference between the change in the operating lease ROU asset and the operating lease liabilities was recognized in “Other operating expense, net,” on the Consolidated Statements of Operations and Comprehensive Income (Loss). In connection with the discontinued use of the previously leased space, we also recognized a $4.4 million termination charge and a $2.9 million impairment charge on the associated leasehold improvements, all of which were also recognized in “Other operating expense, net.” During the second quarter of 2020 and as part of our overall plan to improve liquidity during the COVID-19 pandemic, we negotiated with certain lessors to defer rent payments on leased buildings. In total, $0.5 million of operating lease payments for continuing operations were deferred over a period ranging from April 2020 to December 2020 and are being repaid over a period ranging from June 2020 through December 2022. The deferral of rent payments did not result in a substantial change in total lease payments over the individual lease terms. We have elected to apply lease accounting relief announced by the FASB in April 2020 and have treated these lease concessions as if they existed in the original contracts rather than applying lease modification accounting. The net impact on cash flows from operating activities on the Consolidated Statements of Cash Flows for the twelve months ended December 31, 2020, was $0.7 million in cash savings which includes $0.4 million related to continuing operations. During the year ended December 31, 2018, we recognized rent expense of $8.7 million in continuing operations.
Leases | Leases We adopted ASC 842 on January 1, 2019, and elected the modified retrospective approach in which the new standard is applied to all leases existing at the date of adoption through a cumulative-effect adjustment of less than $0.1 million to accumulated deficit. Consequently, financial information is not updated, and the disclosures required under the new standard are not provided for periods prior to January 1, 2019. As part of the adoption, we elected the package of practical expedients, the short-term lease exemption, and the practical expedient to not separate lease and non-lease components. Accordingly, we accounted for our existing operating leases as operating leases under the new standard, without reassessing (a) whether the contracts contain a lease under ASC 842, (b) whether classification of the operating leases would be different in accordance with ASC 842, or (c) whether any unamortized initial direct costs would have met the definition of initial direct costs in ASC 842 at lease commencement. We determine whether an arrangement is a lease at inception. Right-of-use (“ROU”) lease assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. ROU lease assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. When the implicit rate is not readily determinable, we use the estimated incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Amortization of ROU lease assets is recognized in expense on a straight-line basis over the lease term. Short-term leases are leases having a term of twelve months or less. We recognize short-term leases on a straight-line basis and do not record a related lease asset or liability for such leases. Finance lease ROU assets consist primarily of equipment used in the manufacturing process with terms greater than two years to seven years. Operating lease ROU assets consist of the following: •Equipment used in the manufacturing process as well as office equipment with terms two years to five years; and •Manufacturing plants and office facilities with terms two years to twenty years. The following table presents components of lease expense:
|  |  |  | Years Ended December 31,
|  | Financial Statement Line Item |  | 2020 |  | 2019 |  |
Finance lease cost: |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  | Depreciation and amortization |  | $ | 1,272 |  |  | $ | 1,229 |  |  |
Interest expense |  | Interest expense |  | 192 |  |  | 226 |  |  |
Operating lease cost |  | Cost of sales and selling, general, and administrative expense |  | 8,396 |  |  | 9,108 |  |  |
Short-term lease cost (1) |  | Cost of sales and selling, general, and administrative expense |  | 591 |  |  | 479 |  |  |
Variable lease cost (2) |  | Cost of sales and selling, general, and administrative expense |  | 1 |  |  | 1 |  |  |
Total lease cost |  |  |  | $ | 10,452 |  |  | $ | 11,043 |  |  |
_______________________________ (1) Excludes expenses related to leases with a lease term of one month or less. (2) Represents changes to index-based lease payments. The following table presents lease-related assets and liabilities recorded on the balance sheet.
|  |  |  | As of December 31,
|  | Financial Statement Line Item |  | 2020 |  | 2019
Assets: |  |  |  |  |  |
Operating lease assets |  | Operating lease right-of-use assets |  | $ | 50,264 |  |  | $ | 45,452 |
Finance lease assets |  | Property, plant and equipment, net |  | 14,644 |  |  | 13,267 |
Total lease assets |  |  |  | $ | 64,908 |  |  | $ | 58,719 |
Liabilities: |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |
Operating lease liabilities |  | Current portion of operating lease liabilities |  | $ | 4,797 |  |  | $ | 4,288 |
Finance lease liabilities |  | Other current liabilities |  | 4,252 |  |  | 2,701 |
Non-current liabilities: |  |  |  |  |  |
Operating lease liabilities |  | Operating lease liabilities, net of current portion |  | 55,053 |  |  | 48,575 |
Finance lease liabilities |  | Other non-current liabilities |  | 6,858 |  |  | 7,911 |
Total lease liabilities |  |  |  | $ | 70,960 |  |  | $ | 63,475 |
The following table contains supplemental cash flow information related to leases of continuing operations.
|  | Years Ended December 31,
|  | 2020 |  | 2019 |  |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |
Operating cash flows used in finance leases |  | $ | 192 |  |  | $ | 226 |  |  |
Operating cash flows used in operating leases |  | 13,498 |  |  | 14,090 |  |  |
Financing cash flows used in finance leases |  | 2,018 |  |  | 3,156 |  |  |
Right-of-use assets obtained in exchange for new finance lease liabilities |  | $ | 728 |  |  | $ | 5,250 |  |  |
Right-of-use assets obtained in exchange for new operating lease liabilities (1) |  | $ | 8,682 |  |  | $ | 8,457 |  |  |
_______________________________ (1) Includes new leases, renewals, and modifications. As of December 31, 2020, the weighted average remaining lease term and weighted-average discount rate for finance and operating leases of continuing operations were as follows:
|  | Years Ended December 31,
|  | 2020 |  | 2019 |  |
Weighted-average remaining lease term - finance leases |  | 3.2 years |  | 4.0 years |  |
Weighted-average remaining lease term - operating leases |  | 11.7 years |  | 11.0 years |  |
Weighted-average discount rate - finance leases |  | 2.2 | % |  | 2.2 | % |  |
Weighted-average discount rate - operating leases |  | 7.0 | % |  | 5.7 | % |  |
The maturities of lease liabilities greater than twelve months as of December 31, 2020, is as follows:
|  | Operating Leases |  | Finance Leases
2021 |  | $ | 9,348 |  |  | $ | 4,442 |
2022 |  | 8,485 |  |  | 3,107 |
2023 |  | 7,370 |  |  | 2,365 |
2024 |  | 7,276 |  |  | 1,122 |
2025 |  | 7,194 |  |  | 223 |
Thereafter |  | 48,523 |  |  | 210 |
Total future minimum lease payments |  | 88,196 |  |  | 11,469 |
Less: imputed interest |  | 28,346 |  |  | 359 |
Total lease liabilities |  | $ | 59,850 |  |  | $ | 11,110 |
As of December 31, 2019, we had an operating lease commitment that had not yet commenced. In March 2020, the operating lease for the manufacturing facility commenced and requires us to pay a total of approximately $27.5 million base rent payments over the lease term of 15 years. We began making rent payments in the third quarter of 2020. In March 2020, we amended the lease of our corporate headquarters building to exit over half of the previously leased space and reduce annual base rent payments by approximately $1.3 million over the remaining lease term which ends in 2030. The amendment was accounted for as a lease modification, and the remeasurement of the lease resulted in an $8.1 million decrease in the operating lease right-of-use (“ROU”) asset, a $10.5 million decrease in the noncurrent portion of the operating lease liability, and a $0.6 million decrease in the current portion of the operating lease liability. The $3.0 million difference between the change in the operating lease ROU asset and the operating lease liabilities was recognized in “Other operating expense, net,” on the Consolidated Statements of Operations and Comprehensive Income (Loss). In connection with the discontinued use of the previously leased space, we also recognized a $4.4 million termination charge and a $2.9 million impairment charge on the associated leasehold improvements, all of which were also recognized in “Other operating expense, net.” During the second quarter of 2020 and as part of our overall plan to improve liquidity during the COVID-19 pandemic, we negotiated with certain lessors to defer rent payments on leased buildings. In total, $0.5 million of operating lease payments for continuing operations were deferred over a period ranging from April 2020 to December 2020 and are being repaid over a period ranging from June 2020 through December 2022. The deferral of rent payments did not result in a substantial change in total lease payments over the individual lease terms. We have elected to apply lease accounting relief announced by the FASB in April 2020 and have treated these lease concessions as if they existed in the original contracts rather than applying lease modification accounting. The net impact on cash flows from operating activities on the Consolidated Statements of Cash Flows for the twelve months ended December 31, 2020, was $0.7 million in cash savings which includes $0.4 million related to continuing operations. During the year ended December 31, 2018, we recognized rent expense of $8.7 million in continuing operations.

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 http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum: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 http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration