Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

Leases

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

The Company has operating and finance leases for manufacturing facilities, corporate offices, sales offices, vehicles, and certain equipment. As of September 30, 2021, the Company’s leases had remaining lease terms of 2 to 12 years, some of which include options to extend the leases for up to 12 years, and some of which include options to terminate the leases within 1 year.

The balance sheet components of the Company’s leases were as follows as of September 30, 2021 and December 31, 2020:

	September 30, 2021		December 31, 2020
Operating leases
Operating lease right-of-use assets	$	14,403	$	16,069
Other accrued liabilities	$	2,444	$	2,553
Long-term operating lease liabilities	11,959		13,516
Total operating lease liabilities	$	14,403	$	16,069
Finance leases
Property, plant, and equipment	$	1,162	$	1,116
Accumulated amortization	(977)		(869)
Property, plant, and equipment - net	$	185	$	247
Current maturities of long-term debt	$	111	$	119
Long-term debt	74		128
Total finance lease liabilities	$	185	$	247

The components of lease expense within the Company’s Condensed Consolidated Statements of Operations were as follows for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Finance lease cost:
Amortization of finance leases	$	50	$	29	$	152	$	381
Interest on lease liabilities	19		17		61		53
Operating lease cost	706		719		2,042		2,265
Sublease income	(50)		(50)		(150)		(117)
Total lease cost	$	725	$	715	$	2,105	$	2,582

The cash flow components of the Company’s leases were as follows for the three and nine months ended September 30, 2021 and 2020:

	Nine Months Ended September 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows related to operating leases	$	(2,462)	$	(2,778)
Financing cash flows related to finance leases	(166)		(408)
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	377	$	7,681

The weighted-average remaining lease term (in years) and discount rate related to the operating leases were as follows as of the dates presented:

	September 30,
	2021		2020
Operating lease weighted-average remaining lease term	7		7
Operating lease weighted-average discount rate	5.2	%	5.1	%
Finance lease weighted-average remaining lease term	1		1
Finance lease weighted-average discount rate	4.2	%	4.2	%

As of September 30, 2021, estimated annual maturities of lease liabilities remaining for the year ending December 31, 2021 and thereafter were as follows:

	Operating Leases		Finance Leases
Remainder of 2021	$	817	$	41
2022	3,037		115
2023	2,715		42
2024	2,604		11
2025	2,385		—
2026 and thereafter	5,379		—
Total undiscounted lease payments	16,937		209
Interest	(2,534)		(24)
Total	$	14,403	$	185

Leases

Leases

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

The Company has operating and finance leases for manufacturing facilities, corporate offices, sales offices, vehicles, and certain equipment. As of September 30, 2021, the Company’s leases had remaining lease terms of 2 to 12 years, some of which include options to extend the leases for up to 12 years, and some of which include options to terminate the leases within 1 year.

The balance sheet components of the Company’s leases were as follows as of September 30, 2021 and December 31, 2020:

	September 30, 2021		December 31, 2020
Operating leases
Operating lease right-of-use assets	$	14,403	$	16,069
Other accrued liabilities	$	2,444	$	2,553
Long-term operating lease liabilities	11,959		13,516
Total operating lease liabilities	$	14,403	$	16,069
Finance leases
Property, plant, and equipment	$	1,162	$	1,116
Accumulated amortization	(977)		(869)
Property, plant, and equipment - net	$	185	$	247
Current maturities of long-term debt	$	111	$	119
Long-term debt	74		128
Total finance lease liabilities	$	185	$	247

The components of lease expense within the Company’s Condensed Consolidated Statements of Operations were as follows for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Finance lease cost:
Amortization of finance leases	$	50	$	29	$	152	$	381
Interest on lease liabilities	19		17		61		53
Operating lease cost	706		719		2,042		2,265
Sublease income	(50)		(50)		(150)		(117)
Total lease cost	$	725	$	715	$	2,105	$	2,582

The cash flow components of the Company’s leases were as follows for the three and nine months ended September 30, 2021 and 2020:

	Nine Months Ended September 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows related to operating leases	$	(2,462)	$	(2,778)
Financing cash flows related to finance leases	(166)		(408)
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	377	$	7,681

The weighted-average remaining lease term (in years) and discount rate related to the operating leases were as follows as of the dates presented:

	September 30,
	2021		2020
Operating lease weighted-average remaining lease term	7		7
Operating lease weighted-average discount rate	5.2	%	5.1	%
Finance lease weighted-average remaining lease term	1		1
Finance lease weighted-average discount rate	4.2	%	4.2	%

As of September 30, 2021, estimated annual maturities of lease liabilities remaining for the year ending December 31, 2021 and thereafter were as follows:

	Operating Leases		Finance Leases
Remainder of 2021	$	817	$	41
2022	3,037		115
2023	2,715		42
2024	2,604		11
2025	2,385		—
2026 and thereafter	5,379		—
Total undiscounted lease payments	16,937		209
Interest	(2,534)		(24)
Total	$	14,403	$	185