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Leases
12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
Leases Leases
 
The Company leases certain office and operating facilities, machinery, equipment, and vehicles. Concurrent with the adoption of ASC 842, the Company recognized a right-of-use (ROU) asset and lease liability based on the present value of the future lease payments over the lease term for each lease agreement. The Company has elected not to recognize a ROU asset and lease liability for leases with terms of 12 months or less and will continue to recognize lease expense for these leases on a straight-line basis over the lease term. The Company has leases with both lease components and non-lease components, such as common area maintenance, utilities, or other repairs and maintenance. For all asset classes, the Company decided to utilize the practical expedient to include both fixed lease components and fixed non-lease components in calculating the ROU asset and lease liability. The Company identified variable lease payments, such as maintenance payments based on actual activities performed or costs incurred, at lease commencement by assessing the nature of the payment provisions, including whether the payments are subject to a minimum charge. Many of our leases include one or more options to renew. When it is reasonably certain that we will exercise the option, we include the impact of the option in the lease term for purposes of determining future lease payments. As the Company is unable to determine the discount rate implicit in its lease agreements, the Company uses its incremental borrowing rate on the commencement date to calculate the present value of future payments.

The Company’s Consolidated Balance Sheets include the following related to operating leases as of December 31, 2019:

LeasesClassification2019
Assets:
ROU assetsOther Assets$45,817  
Liabilities:
ROU liability - currentAccrued and other current liabilities$10,133  
ROU liability - long-termOther liabilities36,750  
Total ROU liabilities$46,883  

Included within the balance of operating leases is a lease for the Company’s headquarters which is with a related party. The ROU liability for this facility is approximately $4.5 million as of December 31, 2019 and total rent payments made during the year ended December 31, 2019 approximates $1.0 million. As of December 31, 2019, the total ROU assets attributable to finance leases are approximately $19.2 million, which is included in Property, plant, and equipment, net on the Consolidated Balance Sheets.
The components of lease costs for the year ended December 31, 2019 is as follows:

Classification2019
Finance lease expense:
Amortization of ROU assetsDepreciation and amortization$5,091  
Interest on lease liabilitiesInterest expense824  
Operating lease expenseCost of revenue; Selling, general & administrative expenses12,937  
Short-term lease expenseCost of revenue; Selling, general & administrative expenses43  
Variable lease expenseCost of revenue; Selling, general & administrative expenses1,220  
Total$20,115  

Additional information related to leases as of December 31, 2019 is as follows:

2019
Cash paid for amounts included in the measurement of lease liabilities for finance leases:
Finance - financing cash flows$4,545  
Finance - operating cash flows824  
Operating - operating cash flows12,773  
ROU assets obtained in the exchange for lease liabilities:
Finance leases$9,502  
Operating leases18,965  
Weighted-average remaining lease term (in years):
Finance leases5.9
Operating leases6.2
Weighted-average discount rate:
Finance leases5.8 %
Operating leases5.9 %


Maturities of lease liabilities as of December 31, 2019 is as follows:

FinanceOperating
2020$6,241  $12,466  
20214,25510,347
20223,3818,193
20232,4896,790
20241,6075,224
Thereafter89113,265
Total18,86456,285
Less: Present value discount1,6909,402
Lease liability$17,174  $46,883  
Pursuant to the Company’s adoption of the new lease accounting guidance using a modified retrospective transition approach, as permitted, comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. As previously disclosed in its 2018 Annual Report, the following table presents the Company’s future minimum operating lease commitments as of December 31, 2018:
 
2019$10,939  
20208,764  
20216,327  
20224,826  
20234,239  
Thereafter10,667  
Total$45,762  
Leases Leases
 
The Company leases certain office and operating facilities, machinery, equipment, and vehicles. Concurrent with the adoption of ASC 842, the Company recognized a right-of-use (ROU) asset and lease liability based on the present value of the future lease payments over the lease term for each lease agreement. The Company has elected not to recognize a ROU asset and lease liability for leases with terms of 12 months or less and will continue to recognize lease expense for these leases on a straight-line basis over the lease term. The Company has leases with both lease components and non-lease components, such as common area maintenance, utilities, or other repairs and maintenance. For all asset classes, the Company decided to utilize the practical expedient to include both fixed lease components and fixed non-lease components in calculating the ROU asset and lease liability. The Company identified variable lease payments, such as maintenance payments based on actual activities performed or costs incurred, at lease commencement by assessing the nature of the payment provisions, including whether the payments are subject to a minimum charge. Many of our leases include one or more options to renew. When it is reasonably certain that we will exercise the option, we include the impact of the option in the lease term for purposes of determining future lease payments. As the Company is unable to determine the discount rate implicit in its lease agreements, the Company uses its incremental borrowing rate on the commencement date to calculate the present value of future payments.

The Company’s Consolidated Balance Sheets include the following related to operating leases as of December 31, 2019:

LeasesClassification2019
Assets:
ROU assetsOther Assets$45,817  
Liabilities:
ROU liability - currentAccrued and other current liabilities$10,133  
ROU liability - long-termOther liabilities36,750  
Total ROU liabilities$46,883  

Included within the balance of operating leases is a lease for the Company’s headquarters which is with a related party. The ROU liability for this facility is approximately $4.5 million as of December 31, 2019 and total rent payments made during the year ended December 31, 2019 approximates $1.0 million. As of December 31, 2019, the total ROU assets attributable to finance leases are approximately $19.2 million, which is included in Property, plant, and equipment, net on the Consolidated Balance Sheets.
The components of lease costs for the year ended December 31, 2019 is as follows:

Classification2019
Finance lease expense:
Amortization of ROU assetsDepreciation and amortization$5,091  
Interest on lease liabilitiesInterest expense824  
Operating lease expenseCost of revenue; Selling, general & administrative expenses12,937  
Short-term lease expenseCost of revenue; Selling, general & administrative expenses43  
Variable lease expenseCost of revenue; Selling, general & administrative expenses1,220  
Total$20,115  

Additional information related to leases as of December 31, 2019 is as follows:

2019
Cash paid for amounts included in the measurement of lease liabilities for finance leases:
Finance - financing cash flows$4,545  
Finance - operating cash flows824  
Operating - operating cash flows12,773  
ROU assets obtained in the exchange for lease liabilities:
Finance leases$9,502  
Operating leases18,965  
Weighted-average remaining lease term (in years):
Finance leases5.9
Operating leases6.2
Weighted-average discount rate:
Finance leases5.8 %
Operating leases5.9 %


Maturities of lease liabilities as of December 31, 2019 is as follows:

FinanceOperating
2020$6,241  $12,466  
20214,25510,347
20223,3818,193
20232,4896,790
20241,6075,224
Thereafter89113,265
Total18,86456,285
Less: Present value discount1,6909,402
Lease liability$17,174  $46,883  
Pursuant to the Company’s adoption of the new lease accounting guidance using a modified retrospective transition approach, as permitted, comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. As previously disclosed in its 2018 Annual Report, the following table presents the Company’s future minimum operating lease commitments as of December 31, 2018:
 
2019$10,939  
20208,764  
20216,327  
20224,826  
20234,239  
Thereafter10,667  
Total$45,762