Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases Of Lessee Disclosure [Text Block]

Note 6 – Leases

The Company determines if an arrangement is a lease at its inception. This determination generally depends on whether the arrangement conveys the right to control the use of an identified fixed asset explicitly or implicitly for a period of time in exchange for consideration. Control of an underlying asset is conveyed if the Company obtains the rights to direct the use of, and obtains substantially all of the economic benefits from the use of, the underlying asset. Lease expense for variable leases and short-term leases is recognized when the obligation is incurred.

The Company has operating leases for certain facilities, vehicles and machinery and equipment with remaining lease terms up to 8 years. In addition, the Company has certain land use leases with remaining lease terms up to 96 years. The lease term for all of the Company’s leases includes the non-cancellable period of the lease plus any additional periods covered by an option to extend the lease that the Company is reasonably certain it will exercise. Operating leases are included in right of use lease assets, other current liabilities and long-term lease liabilities on the Condensed Consolidated Balance Sheet. Right of use lease assets and liabilities are recognized at each lease’s commencement date based on the present value of its lease payments over its respective lease term. The Company uses the stated borrowing rate for a lease when readily determinable. When a stated borrowing rate is not available in a lease agreement, the Company uses its incremental borrowing rate based on information available at the lease’s commencement date to determine the present value of its lease payments. In determining the incremental borrowing rate used to present value each of its leases, the Company considers certain information including fully secured borrowing rates readily available to the Company and its subsidiaries. The Company has immaterial finance leases, which are included in property, plant and equipment, current portion of long-term debt and long-term debt on the Condensed Consolidated Balance Sheet.

Operating lease expense is recognized on a straight-line basis over the lease term. Operating lease expense for the three and nine months ended September 30, 2019 was $2.5 million and $6.0 million, respectively. Short-term lease expense for the three and nine months ended September 30, 2019 was $0.5 million and $0.8 million, respectively. The Company has no material variable lease costs or sublease income for the three or nine months ended September 30, 2019. Cash paid for operating leases during the nine months ended September 30, 2019 was $5.9 million. Subsequent to the Company’s adoption of the new lease accounting guidance, the Company recorded new right of use lease assets and associated lease liabilities of $1.4 million during the nine months ended September 30, 2019. Supplemental balance sheet information related to the Company’s leases is as follows:

	September 30,
	2019
Right of use lease assets	$	33,789
Other current liabilities		9,056
Long-term lease liabilities		24,259
Total operating lease liabilities	$	33,315
Weighted average remaining lease term (years)		4.9
Weighted average discount rate		4.31%

Maturities of operating lease liabilities as of September 30, 2019 were as follows:

	September 30,
	2019
For the remainder of 2019	$	2,713
For the year ended December 31, 2020		9,845
For the year ended December 31, 2021		7,892
For the year ended December 31, 2022		4,943
For the year ended December 31, 2023		3,358
For the year ended December 31, 2024 and beyond		8,642
Total lease payments		37,393
Less: imputed interest		(4,078)
Present value of lease liabilities	$	33,315

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 Annual Report filed on Form 10-K, as amended by Form 10-K/A, for the year ended December 31, 2018, the following table presents the Company’s future minimum rental commitments under operating leases as of December 31, 2018:

For the year ended 2019	$	7,068
For the year ended 2020		5,635
For the year ended 2021		4,509
For the year ended 2022		3,523
For the year ended 2023		2,659
For the year ended 2024 and beyond		7,779