Leases

3 Months Ended

Mar. 31, 2022

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 March 31, 2022, 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 March 31, 2022 and December 31, 2021:

	March 31, 2022		December 31, 2021
Operating leases
Operating lease right-of-use assets	$	14,374	$	15,131
Other accrued liabilities	$	2,816	$	2,852
Long-term operating lease liabilities	11,558		12,279
Total operating lease liabilities	$	14,374	$	15,131
Finance leases
Property, plant, and equipment	$	1,162	$	1,162
Accumulated amortization	(1,047)		(1,011)
Property, plant, and equipment - net	$	115	$	151
Current maturities of long-term debt	$	80	$	98
Long-term debt	35		53
Total finance lease liabilities	$	115	$	151

The components of lease expense within the Company’s Condensed Consolidated Statements of Operations were as follows for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022		2021
Finance lease cost:
Amortization of finance leases	$	38	$	51
Interest on lease liabilities	8		22
Operating lease cost	757		642
Sublease income	(50)		(50)
Total lease cost	$	753	$	665

The cash flow components of the Company’s leases were as follows for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows related to operating leases	$	(889)	$	(792)
Financing cash flows related to finance leases	(41)		(55)

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

	March 31,
	2022		2021
Operating lease weighted-average remaining lease term	6		7
Operating lease weighted-average discount rate	5.2	%	5.2	%
Finance lease weighted-average remaining lease term	1		1
Finance lease weighted-average discount rate	4.1	%	4.2	%

As of March 31, 2022, estimated annual maturities of lease liabilities remaining for the year ending December 31, 2022 and thereafter were as follows:

	Operating Leases		Finance Leases
Remainder of 2022	$	2,607	$	78
2023	3,288		42
2024	2,945		11
2025	2,375		—
2026	2,170		—
2027 and thereafter	3,165		—
Total undiscounted lease payments	16,550		131
Interest	(2,176)		(16)
Total	$	14,374	$	115

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 March 31, 2022, 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 March 31, 2022 and December 31, 2021:

	March 31, 2022		December 31, 2021
Operating leases
Operating lease right-of-use assets	$	14,374	$	15,131
Other accrued liabilities	$	2,816	$	2,852
Long-term operating lease liabilities	11,558		12,279
Total operating lease liabilities	$	14,374	$	15,131
Finance leases
Property, plant, and equipment	$	1,162	$	1,162
Accumulated amortization	(1,047)		(1,011)
Property, plant, and equipment - net	$	115	$	151
Current maturities of long-term debt	$	80	$	98
Long-term debt	35		53
Total finance lease liabilities	$	115	$	151

The components of lease expense within the Company’s Condensed Consolidated Statements of Operations were as follows for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022		2021
Finance lease cost:
Amortization of finance leases	$	38	$	51
Interest on lease liabilities	8		22
Operating lease cost	757		642
Sublease income	(50)		(50)
Total lease cost	$	753	$	665

The cash flow components of the Company’s leases were as follows for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows related to operating leases	$	(889)	$	(792)
Financing cash flows related to finance leases	(41)		(55)

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

	March 31,
	2022		2021
Operating lease weighted-average remaining lease term	6		7
Operating lease weighted-average discount rate	5.2	%	5.2	%
Finance lease weighted-average remaining lease term	1		1
Finance lease weighted-average discount rate	4.1	%	4.2	%

As of March 31, 2022, estimated annual maturities of lease liabilities remaining for the year ending December 31, 2022 and thereafter were as follows:

	Operating Leases		Finance Leases
Remainder of 2022	$	2,607	$	78
2023	3,288		42
2024	2,945		11
2025	2,375		—
2026	2,170		—
2027 and thereafter	3,165		—
Total undiscounted lease payments	16,550		131
Interest	(2,176)		(16)
Total	$	14,374	$	115