Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

Leases

Leases

The Company has obligations under lease arrangements primarily for facilities, equipment and vehicles. These leases have original lease periods expiring between December 2020 and August 2034. For the three and nine months ended September 30, 2020, the Company recorded lease expense of $1.4 million and $4.9 million within Cost of sales, $0.4 million and $0.5 million within Research, development, and engineering expenses, $0.1 million and $0.2 million within Selling, general and administrative expenses and less than $0.1 million within Interest expense in the Consolidated Statements of Operations, respectively. For the three and nine months ended September 30, 2019, the Company recorded lease expense of $1.6 million and $5.2 million within Cost of sales, $0.3 million and $0.5 million within Research, development and engineering expenses, $0.1 million and $0.2 million within Selling, general and administrative expenses and less than $0.1 million within Interest expense in the Consolidated Statements of Operations, respectively.

The following table summarizes the components of lease expense:

(in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Operating lease cost	$	1,394	$	1,386	$	4,141	$	4,193
Finance lease cost
Amortization of right-of-use (“ROU”) asset	52		50		156		119
Interest expense	12		14		37		35
Short-term lease cost	105		177		322		453
Variable lease cost	363		390		1,160		1,156
Total lease cost	$	1,926	$	2,017	$	5,816	$	5,956

The following table presents supplemental cash flow information related to leases:

(in thousands)	For the Nine Months Ended September 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows paid for operating leases	$	4,105	$	3,816
Operating cash flows paid for interest portion of finance leases	37		36
Financing cash flows paid for principal portion of finance leases	145		106
Right-of-use assets obtained in exchange for lease obligations
Operating leases	299		280
Finance leases	11		517

As of September 30, 2020 and December 31, 2019, the weighted-average remaining lease term was 6.3 years and 6.7 years for operating leases and 4.0 years and 4.5 years for finance leases, respectively. The weighted-average discount rate was 7.2% for operating leases as of both September 30, 2020 and December 31, 2019 and 6.7% and 6.8% for finance leases as of September 30, 2020 and December 31, 2019, respectively.

The following table presents supplemental balance sheet information related to leases:

(in thousands)	September 30, 2020		December 31, 2019
Operating lease ROU assets, net 1	$	18,083	$	20,677
Operating lease liabilities, current 2	3,802		3,789
Operating lease liabilities, non-current 3	15,114		17,679
Total operating lease liabilities	$	18,916	$	21,468
Finance lease ROU assets, net 1	$	617	$	777
Finance lease liabilities, current 2	197		195
Finance lease liabilities, non-current 3	464		617
Total finance lease liabilities	$	661	$	812

1.Included in Other noncurrent assets for operating leases and Property, plant and equipment, net for finance leases on the Consolidated Balance Sheets.

2.Included in Other accrued liabilities for operating leases and Current maturities of long-term debt for finance leases on the Consolidated Balance Sheets.

3.Included in Other noncurrent liabilities for operating leases and Long-term debt, net of current maturities for finance leases on the Consolidated Balance Sheets.

The following table presents maturity analysis of lease liabilities as of September 30, 2020:

(in thousands)	Operating Leases		Finance Leases
Three months ending December 31, 2020	$	1,300	$	61
Year ending December 31, 2021	4,948		245
Year ending December 31, 2022	4,788		177
Year ending December 31, 2023	3,283		103
Year ending December 31, 2024	1,813		84
Thereafter	7,399		83
Total undiscounted lease payments	23,531		753
Less: imputed interest	4,615		92
Total lease liabilities	$	18,916	$	661

Leases

Leases

Leases

The Company has obligations under lease arrangements primarily for facilities, equipment and vehicles. These leases have original lease periods expiring between December 2020 and August 2034. For the three and nine months ended September 30, 2020, the Company recorded lease expense of $1.4 million and $4.9 million within Cost of sales, $0.4 million and $0.5 million within Research, development, and engineering expenses, $0.1 million and $0.2 million within Selling, general and administrative expenses and less than $0.1 million within Interest expense in the Consolidated Statements of Operations, respectively. For the three and nine months ended September 30, 2019, the Company recorded lease expense of $1.6 million and $5.2 million within Cost of sales, $0.3 million and $0.5 million within Research, development and engineering expenses, $0.1 million and $0.2 million within Selling, general and administrative expenses and less than $0.1 million within Interest expense in the Consolidated Statements of Operations, respectively.

The following table summarizes the components of lease expense:

(in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Operating lease cost	$	1,394	$	1,386	$	4,141	$	4,193
Finance lease cost
Amortization of right-of-use (“ROU”) asset	52		50		156		119
Interest expense	12		14		37		35
Short-term lease cost	105		177		322		453
Variable lease cost	363		390		1,160		1,156
Total lease cost	$	1,926	$	2,017	$	5,816	$	5,956

The following table presents supplemental cash flow information related to leases:

(in thousands)	For the Nine Months Ended September 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows paid for operating leases	$	4,105	$	3,816
Operating cash flows paid for interest portion of finance leases	37		36
Financing cash flows paid for principal portion of finance leases	145		106
Right-of-use assets obtained in exchange for lease obligations
Operating leases	299		280
Finance leases	11		517

As of September 30, 2020 and December 31, 2019, the weighted-average remaining lease term was 6.3 years and 6.7 years for operating leases and 4.0 years and 4.5 years for finance leases, respectively. The weighted-average discount rate was 7.2% for operating leases as of both September 30, 2020 and December 31, 2019 and 6.7% and 6.8% for finance leases as of September 30, 2020 and December 31, 2019, respectively.

The following table presents supplemental balance sheet information related to leases:

(in thousands)	September 30, 2020		December 31, 2019
Operating lease ROU assets, net 1	$	18,083	$	20,677
Operating lease liabilities, current 2	3,802		3,789
Operating lease liabilities, non-current 3	15,114		17,679
Total operating lease liabilities	$	18,916	$	21,468
Finance lease ROU assets, net 1	$	617	$	777
Finance lease liabilities, current 2	197		195
Finance lease liabilities, non-current 3	464		617
Total finance lease liabilities	$	661	$	812

1.Included in Other noncurrent assets for operating leases and Property, plant and equipment, net for finance leases on the Consolidated Balance Sheets.

2.Included in Other accrued liabilities for operating leases and Current maturities of long-term debt for finance leases on the Consolidated Balance Sheets.

3.Included in Other noncurrent liabilities for operating leases and Long-term debt, net of current maturities for finance leases on the Consolidated Balance Sheets.

The following table presents maturity analysis of lease liabilities as of September 30, 2020:

(in thousands)	Operating Leases		Finance Leases
Three months ending December 31, 2020	$	1,300	$	61
Year ending December 31, 2021	4,948		245
Year ending December 31, 2022	4,788		177
Year ending December 31, 2023	3,283		103
Year ending December 31, 2024	1,813		84
Thereafter	7,399		83
Total undiscounted lease payments	23,531		753
Less: imputed interest	4,615		92
Total lease liabilities	$	18,916	$	661