| Leases |
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 15 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 (Loss), were as follows:
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Three Months Ended |
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Nine Months Ended |
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Three Months Ended |
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Nine Months Ended |
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September 30, 2021 |
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September 30, 2021 |
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September 30, 2020 |
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September 30, 2020 |
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Operating lease expense |
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$ 1,433 |
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$ 4,215 |
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$ 1,364 |
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$ 3,972 |
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Short term lease cost |
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$ 34 |
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$ 192 |
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$ 141 |
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$ 286 |
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Total lease cost |
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$ 1,467 |
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$ 4,407 |
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$ 1,505 |
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$ 4,258 |
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Cash Flow
Supplemental cash flow information related to leases is as follows:
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Nine Months Ended |
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Nine Months Ended |
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September 30, 2021 |
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September 30, 2020 |
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Cash paid for amounts included in the measurement of operating lease liabilities |
$ 4,142 |
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$ 3,911 |
Non-cash lease expense - right-of-use assets |
$ 2,360 |
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$ 3,095 |
Right-of-use assets obtained in exchange for operating lease obligations |
$ 865 |
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$ 3,796 |
Balance Sheet
Supplemental balance sheet information related to leases is as follows:
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September 30, 2021 |
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December 31, 2020 |
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Operating Leases |
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Operating lease right-of-use assets |
$ 19,080 |
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$ 21,441 |
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Other current liabilities |
4,623 |
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4,326 |
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Operating lease liabilities |
14,840 |
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17,434 |
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Total operating lease liabilities |
$ 19,463 |
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$ 21,760 |
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Weighted Average Remaining Lease Term |
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Operating leases |
59 |
months |
67 |
months |
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Weighted Average Discount Rate |
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Operating leases |
5.06% |
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5.16% |
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Lease Maturities
Maturities of leases were as follows:
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Year ending December 31, |
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Operating Leases |
2021 (excluding the nine months ended September 30, 2021) |
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$ 1,405 |
2022 |
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5,266 |
2023 |
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4,634 |
2024 |
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3,875 |
2025 |
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3,113 |
Thereafter |
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3,619 |
Total Lease Payments |
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21,912 |
Less: imputed interest |
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(2,449) |
Total |
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$ 19,463 |
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