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Leases
 3 Months Ended
Mar. 31, 2019
Leases [Abstract]  
Leases, Operating Leases
On January 1, 2019, the Company adopted ASU 2016-02 and all the related amendments using the modified retrospective approach, which resulted in an increase in assets of $13,585 and an increase in current and long-term liabilities of $3,322 and $10,263, respectively. This adoption did not affect our results of operations, cash flows, or covenants of the Amended and Restated Credit Agreement dated March 13, 2015, and as amended by the Second Amendment dated November 7, 2016. This adoption will also have no impact to the covenants of the Third Amended and Restated Credit Agreement dated April 30, 2019.

We determine if an arrangement is a lease at its inception. Operating leases are included in “Operating lease right-of-use assets,” “Other current liabilities,” and “Long-term operating lease liabilities” within our Condensed Consolidated Balance Sheets. Finance leases are included in “Property, plant, and equipment - net,” “Current maturities of long-term debt,” and “Long-term debt” in our Condensed Consolidated Balance Sheets.

Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of the lease payments. We use the implicit rate when readily determinable. The operating lease right-of-use also includes indirect costs incurred and lease payments made prior to the commencement date, less any lease incentives received. Our lease terms may include options to extend or terminate the lease and will be recognized when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.
We have lease agreements with lease and non-lease components which we account for as a single lease component. Also, for certain equipment leases, we apply a portfolio approach to effectively account for the operating lease right-of-use assets and liabilities.

Finance lease and lessor accounting recognition has remained substantially unchanged under ASU 2016-02 and had no impact on the Company's balance sheet, results of operations, or cash flows as a result of the adoption of ASU 2016-02.

The Company has operating and finance leases for manufacturing facilities, corporate offices, sales offices, vehicles, and certain equipment. As of March 31, 2019, our leases have remaining lease terms of 1 to 9 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. As of March 31, 2019, the Company’s operating leases have a weighted average remaining lease term of 6 years and a weighted average discount rate of 4.9%. As of March 31, 2019, the Company’s finance leases have a weighted average remaining lease term of 1 year and a weighted average discount rate of 4.3%.

The balance sheet component of the Company's leases were as follows as of March 31, 2019:
March 31, 2019
Operating leases
Operating lease right-of-use assets$13,116 
Other current liabilities$3,304 
Long-term operating lease liabilities9,812 
Total operating lease liabilities$13,116 
Finance leases
Property, plant, and equipment$3,462 
Accumulated amortization(2,668)
Property, plant, and equipment - net$794 
Current maturities of long-term debt$609 
Long-term debt184 
Total finance lease liabilities$793 

The components of lease expense within the Company's statements of operations were as follows for the three months ended March 31, 2019:
March 31, 2019
Finance lease cost:
Amortization of finance leases$178 
Interest on lease liabilities9 
Operating lease cost916 
Sublease income(9)
Total lease cost$1,094 

The cash flow components of the Company's leases were as follows for the three months ended March 31, 2019:
March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$(1,079)
Financing cash flows from finance leases(181)
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases$447 
As of March 31, 2019, estimated annual maturities of lease liabilities for the year ending December 31, 2019 and thereafter are as follows:
Operating LeasesFinance Leases
Remaining 2019$2,729 $491 
20203,068 337 
20212,223 16 
20221,750 — 
20231,405 — 
2024 and thereafter4,332 — 
Total undiscounted lease payments15,507 844 
Interest(2,391)(51)
Total$13,116 $793 
Leases, Finance Leases
On January 1, 2019, the Company adopted ASU 2016-02 and all the related amendments using the modified retrospective approach, which resulted in an increase in assets of $13,585 and an increase in current and long-term liabilities of $3,322 and $10,263, respectively. This adoption did not affect our results of operations, cash flows, or covenants of the Amended and Restated Credit Agreement dated March 13, 2015, and as amended by the Second Amendment dated November 7, 2016. This adoption will also have no impact to the covenants of the Third Amended and Restated Credit Agreement dated April 30, 2019.

We determine if an arrangement is a lease at its inception. Operating leases are included in “Operating lease right-of-use assets,” “Other current liabilities,” and “Long-term operating lease liabilities” within our Condensed Consolidated Balance Sheets. Finance leases are included in “Property, plant, and equipment - net,” “Current maturities of long-term debt,” and “Long-term debt” in our Condensed Consolidated Balance Sheets.

Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of the lease payments. We use the implicit rate when readily determinable. The operating lease right-of-use also includes indirect costs incurred and lease payments made prior to the commencement date, less any lease incentives received. Our lease terms may include options to extend or terminate the lease and will be recognized when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.
We have lease agreements with lease and non-lease components which we account for as a single lease component. Also, for certain equipment leases, we apply a portfolio approach to effectively account for the operating lease right-of-use assets and liabilities.

Finance lease and lessor accounting recognition has remained substantially unchanged under ASU 2016-02 and had no impact on the Company's balance sheet, results of operations, or cash flows as a result of the adoption of ASU 2016-02.

The Company has operating and finance leases for manufacturing facilities, corporate offices, sales offices, vehicles, and certain equipment. As of March 31, 2019, our leases have remaining lease terms of 1 to 9 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. As of March 31, 2019, the Company’s operating leases have a weighted average remaining lease term of 6 years and a weighted average discount rate of 4.9%. As of March 31, 2019, the Company’s finance leases have a weighted average remaining lease term of 1 year and a weighted average discount rate of 4.3%.

The balance sheet component of the Company's leases were as follows as of March 31, 2019:
March 31, 2019
Operating leases
Operating lease right-of-use assets$13,116 
Other current liabilities$3,304 
Long-term operating lease liabilities9,812 
Total operating lease liabilities$13,116 
Finance leases
Property, plant, and equipment$3,462 
Accumulated amortization(2,668)
Property, plant, and equipment - net$794 
Current maturities of long-term debt$609 
Long-term debt184 
Total finance lease liabilities$793 

The components of lease expense within the Company's statements of operations were as follows for the three months ended March 31, 2019:
March 31, 2019
Finance lease cost:
Amortization of finance leases$178 
Interest on lease liabilities9 
Operating lease cost916 
Sublease income(9)
Total lease cost$1,094 

The cash flow components of the Company's leases were as follows for the three months ended March 31, 2019:
March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$(1,079)
Financing cash flows from finance leases(181)
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases$447 
As of March 31, 2019, estimated annual maturities of lease liabilities for the year ending December 31, 2019 and thereafter are as follows:
Operating LeasesFinance Leases
Remaining 2019$2,729 $491 
20203,068 337 
20212,223 16 
20221,750 — 
20231,405 — 
2024 and thereafter4,332 — 
Total undiscounted lease payments15,507 844 
Interest(2,391)(51)
Total$13,116 $793