Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Lessee, Operating Leases [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 12 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 accrued liabilities and long-term lease liabilities on the 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 PP&E, current portion of long-term debt and long-term debt on the Consolidated Balance Sheet.

Operating lease expense is recognized on a straight-line basis over the lease term. Operating lease expense for the year ended December 31, 2019 was $9.4 million. Short-term lease expense for the year ended December 31, 2019 was $1.5 million. The Company has no material variable lease costs or sublease income for the year ended December 31, 2019. Cash paid for operating leases during the year ended December 31, 2019 was $9.2 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 $2.6 million during the year ended December 31, 2019. Supplemental balance sheet information related to the Company’s leases is as follows:

	December 31,
	2019
Right of use lease assets	$	42,905
Other accrued liabilities		11,177
Long-term lease liabilities		31,273
Total operating lease liabilities	$	42,450
Weighted average remaining lease term (years)		6.2
Weighted average discount rate		4.21%

Maturities of operating lease liabilities as of December 31, 2019 were as follows:

	December 31,
	2019
For the year ended December 31, 2020	$	12,731
For the year ended December 31, 2021		10,095
For the year ended December 31, 2022		6,570
For the year ended December 31, 2023		4,692
For the year ended December 31, 2024		3,859
For the year ended December 31, 2025 and beyond		10,982
Total lease payments		48,929
Less: imputed interest		(6,479)
Present value of lease liabilities	$	42,450

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