Leases

3 Months Ended

Mar. 31, 2020

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 11 years. In addition, the Company has certain land use leases with remaining lease terms up to 95 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 months ended March 31, 2020 and 2019 was $3.4 million and $1.8 million, respectively. Short-term lease expense was $0.5 million and $0.1 million for the three months ended March 31, 2020 and 2019, respectively. The Company has no material variable lease costs or sublease income for the three months ended March 31, 2020 and 2019. Cash paid for operating leases was $3.4 million and $1.7 million during the three months ended March 31, 2020 and 2019, respectively. The Company recorded new right of use lease assets and associated lease liabilities of approximately $1.7 million during the three months ended March 31, 2020.

Supplemental balance sheet information related to the Company’s leases is as follows:

	March 31,		December 31,
	2020		2019
Right of use lease assets	$	40,496	$	42,905
Other current liabilities		10,731		11,177
Long-term lease liabilities		29,402		31,273
Total operating lease liabilities	$	40,133	$	42,450
Weighted average remaining lease term (years)		6.1		6.2
Weighted average discount rate		4.22%		4.21%

Maturities of operating lease liabilities as of March 31, 2020 were as follows:

	March 31,
	2020
For the remainder of 2020	$	9,508
For the year ended December 31, 2021		10,234
For the year ended December 31, 2022		6,817
For the year ended December 31, 2023		4,953
For the year ended December 31, 2024		3,981
For the year ended December 31, 2025 and beyond		10,919
Total lease payments		46,412
Less: imputed interest		(6,279)
Present value of lease liabilities	$	40,133