Leases |
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| Lessee, Operating Leases [Text Block] |
The Company has operating leases for manufacturing and upfit facilities, land and parking lots, warehousing space and certain equipment. The leases have remaining lease terms of less than one year to 17 years, some of which include options to extend the leases for up to 10 years. Such renewal options were not included in the determination of the lease term unless deemed reasonably certain of exercise. The discount rate used in measuring the lease liabilities is based on the Company’s interest rate on its secured Term Loan Credit Agreement. Certain of the Company’s leases contain escalating rental payments based on an index. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.
Lease Expense
The components of lease expense, which are included in Cost of sales and Selling, general and administrative expenses on the Condensed Consolidated Statements of Operations and Comprehensive Income, were as follows:
Cash Flow
Supplemental cash flow information related to leases is as follows:
Balance Sheet
Supplemental balance sheet information related to leases is as follows:
Lease Maturities
Maturities of leases were as follows:
Related party leases
The Company entered into lease agreements at the time of the close of the Dejana acquisition with parties that are affiliated with the former owners of Dejana and remain affiliated with Dejana post - acquisition. The related parties continue to own land and buildings where Dejana conducts business. As of June 30, 2019, the Company had 9 operating leases at Dejana upfitting and manufacturing facilities with related party affiliates. The Company incurred $534 and $1,068 of total rent expense to related parties in the three and six months ended June 30, 2019, respectively. As the Company makes monthly payments to the related parties, there are no amounts owed to the related parties at June 30, 2019.
ASC 840 Disclosure
As required in transition, the below summarizes the Company’s future minimum lease payments at December 31, 2018 under ASC 840:
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