Lease Agreements

12 Months Ended

Dec. 31, 2017

The Company has operating and capital leases covering certain warehouse and office facilities, equipment, automobiles and trucks, with the lapse of time as the basis for all rental payments.

The Company has determined that for accounting purposes its lease of its operating facility in Janesville, Wisconsin is a build-to-suit lease. During the construction of this facility, which concluded in the fourth quarter of 2015, the Company assumed certain risks of certain construction cost overages and was, therefore, deemed to be the owner of the facility during the construction period. All costs of construction related to this facility are recognized as property, plant and equipment, with a related build-to-suit liability.

Subsequent to the completion of construction, the Company did not qualify for sale-leaseback accounting because of provisions in the lease which constituted prohibited continuing involvement. As a result, the Company will amortize the build-to-suit liability over the lease term and depreciate the building over the lease term. The Company has reflected $10,148 and $12,305 as build-to-suit liability in the Consolidated Balance Sheets as of December 31, 2017 (Successor) and December 31, 2016 (Predecessor), respectively.

Total gross value of property, plant and equipment under capital leases was $360 and $524 as of December 31, 2017 (Successor) and December 31, 2016 (Predecessor), respectively.

Future minimum rental payments under leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2017 (Successor) are as follows:



	Capital Leases		Operating Leases		Built-to-Suit Lease
2018	$	118	$	7,970	$	897
2019	117		5,848		915
2020	54		4,878		933
2021	—		4,511		952
2022	—		4,643		971
Later years	—		7,255		8,451
Total future minimum rental payments	$	289	$	35,105	$	13,119

Total rental payments charged to expense were $2,869 in the period September 1, 2017 through December 31, 2017 (Successor), $6,028 in the period January 1, 2017 through August 31, 2017 (Predecessor), and $9,175 in the year ended December 31, 2016 (Predecessor). Lease extrication charges of $6,038 associated with restructuring activities were charged to expense in the year ended December 31, 2016 (Predecessor) within restructuring expense in the Consolidated Statements of Operations and Comprehensive (Loss) Income. There were no lease extrication charges in the periods September 1, 2017 through December 31, 2017 (Successor) and January 1, 2017 through August 31, 2017 (Predecessor).