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Leases
 9 Months Ended
Sep. 30, 2023
Leases [Abstract]  
Leases Leases
Rockwell leases its production facilities and administrative offices as well as certain equipment used in its operations including leases on transportation equipment used in the delivery of its products. The lease terms range from monthly to six years. Rockwell occupies a 51,000 square foot facility and a 17,500 square foot facility in Wixom, Michigan under a lease expiring in August 2024. Rockwell also occupies two other manufacturing facilities, a 51,000 square foot facility in Grapevine, Texas under a lease expiring in December 2025, and a 57,000 square foot facility in Greer, South Carolina under a lease expiring February 2026. In addition, Rockwell occupied 4,100 square feet of office space in Hackensack, New Jersey under a lease expiring on October 31, 2024. This lease was subleased on December 15, 2021 with an expiration date of October 31, 2024.
At September 30, 2023, the Company had operating and finance lease liabilities of $5.4 million and right-of-use assets of $5.1 million, which are included in the condensed consolidated balance sheet.
At December 31, 2022, the Company had operating and finance lease liabilities of $6.7 million and right-of-use assets of $6.4 million, which are included in the condensed consolidated balance sheet.
The following summarizes quantitative information about the Company’s operating and finance leases (table in thousands):
Three Months Ended September 30, 2023Three Months Ended September 30, 2022Nine Months Ended September 30, 2023Nine Months Ended September 30, 2022
Operating leases
Operating lease cost$422 $410 $1,281 $1,289 
Variable lease cost112 101 336 287 
Operating lease expense534 511 1,617 1,576 
Finance leases
Non-cash lease expense from right-of-use assets142 141 424 424 
Interest on lease obligations36 44 113 136 
Finance lease expense178 185 537 560 
Short-term lease rent expense4 5 12 14 
Total lease expense$716 $701 $2,166 $2,150 
Other information
Payments for principal from operating leases$461 $427 $1,363 $1,338 
Payments for interest from finance leases$37 $44 $114 $136 
Payments for principal from finance leases$130 $121 $388 $359 
Weighted-average remaining lease term – operating leases2.53.22.53.2
Weighted-average remaining lease term – finance leases3.74.73.74.7
Weighted-average discount rate – operating leases6.5 %6.4 %6.5 %6.4 %
Weighted-average discount rate – finance leases6.4 %6.4 %6.4 %6.4 %
Future minimum rental payments under operating and finance lease agreements are as follows (in thousands):
OperatingFinance
Year ending December 31, 2023 (remaining)$439 $168 
Year ending December 31, 20241,511 672 
Year ending December 31, 20251,021 676 
Year ending December 31, 2026362 666 
Year ending December 31, 2027131 311 
Total3,464 2,493 
Less present value discount(259)(271)
Operating and finance lease liabilities$3,205 $2,222 
Leases Leases
Rockwell leases its production facilities and administrative offices as well as certain equipment used in its operations including leases on transportation equipment used in the delivery of its products. The lease terms range from monthly to six years. Rockwell occupies a 51,000 square foot facility and a 17,500 square foot facility in Wixom, Michigan under a lease expiring in August 2024. Rockwell also occupies two other manufacturing facilities, a 51,000 square foot facility in Grapevine, Texas under a lease expiring in December 2025, and a 57,000 square foot facility in Greer, South Carolina under a lease expiring February 2026. In addition, Rockwell occupied 4,100 square feet of office space in Hackensack, New Jersey under a lease expiring on October 31, 2024. This lease was subleased on December 15, 2021 with an expiration date of October 31, 2024.
At September 30, 2023, the Company had operating and finance lease liabilities of $5.4 million and right-of-use assets of $5.1 million, which are included in the condensed consolidated balance sheet.
At December 31, 2022, the Company had operating and finance lease liabilities of $6.7 million and right-of-use assets of $6.4 million, which are included in the condensed consolidated balance sheet.
The following summarizes quantitative information about the Company’s operating and finance leases (table in thousands):
Three Months Ended September 30, 2023Three Months Ended September 30, 2022Nine Months Ended September 30, 2023Nine Months Ended September 30, 2022
Operating leases
Operating lease cost$422 $410 $1,281 $1,289 
Variable lease cost112 101 336 287 
Operating lease expense534 511 1,617 1,576 
Finance leases
Non-cash lease expense from right-of-use assets142 141 424 424 
Interest on lease obligations36 44 113 136 
Finance lease expense178 185 537 560 
Short-term lease rent expense4 5 12 14 
Total lease expense$716 $701 $2,166 $2,150 
Other information
Payments for principal from operating leases$461 $427 $1,363 $1,338 
Payments for interest from finance leases$37 $44 $114 $136 
Payments for principal from finance leases$130 $121 $388 $359 
Weighted-average remaining lease term – operating leases2.53.22.53.2
Weighted-average remaining lease term – finance leases3.74.73.74.7
Weighted-average discount rate – operating leases6.5 %6.4 %6.5 %6.4 %
Weighted-average discount rate – finance leases6.4 %6.4 %6.4 %6.4 %
Future minimum rental payments under operating and finance lease agreements are as follows (in thousands):
OperatingFinance
Year ending December 31, 2023 (remaining)$439 $168 
Year ending December 31, 20241,511 672 
Year ending December 31, 20251,021 676 
Year ending December 31, 2026362 666 
Year ending December 31, 2027131 311 
Total3,464 2,493 
Less present value discount(259)(271)
Operating and finance lease liabilities$3,205 $2,222