Leases

9 Months Ended

Sep. 30, 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 and nine

months ended September 30, 2020 was $

3.7

 million and $

10.6

 million, respectively. Comparatively, 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, 2020 was $

0.2

 million and $

1.1

 million, respectively. Comparatively, 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, 2020 and 2019. 

Cash paid for operating leases during the nine months ended September 30, 2020 and 2019 was $

10.5

 million and $

5.9

 million,

respectively. The Company recorded new right of use lease assets and associated lease liabilities of $

6.1

 million during the nine

months ended September 30, 2020. 

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

September 30,

December 31,

2020

2019

Right of use lease assets

$

39,781

$

42,905

Other current liabilities

11,185

11,177

Long-term lease liabilities

28,061

31,273

Total operating lease liabilities

$

39,246

$

42,450

Weighted average remaining lease term (years)

6.0

6.2

Weighted average discount rate

4.21%

4.21%

Maturities of operating lease liabilities as of September 30, 2020 were as follows:

September 30,

2020

For the remainder of 2020

$

4,689

For the year ended December 31, 2021

11,584

For the year ended December 31, 2022

8,019

For the year ended December 31, 2023

5,912

For the year ended December 31, 2024

4,387

For the year ended December 31, 2025 and beyond

11,583

Total lease payments

46,174

Less: imputed interest

(6,928)

Present value of lease liabilities

$

39,246