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Leases
 6 Months Ended
Jun. 30, 2021
Leases [Abstract]  
Leases Leases
We had a finance lease obligation related to our manufacturing facility in Eschenbach, Germany. Under the terms of the lease agreement, we had an option to purchase the property upon the expiration of the lease on June 30, 2021 at a price which was the greater of (i) the then-current market value or (ii) the residual book value of the land including the buildings and installations thereon. We exercised this purchase option with a net cash payment of $5.0 million on June 30, 2021, extinguishing the remaining finance lease obligation and finance lease right-of-use asset related to this facility. Our finance lease obligation related to this facility was $4.2 million just prior to the exercise of the purchase option and $4.5 million as of December 31, 2020. The finance lease right-of-use asset balance for this facility was $6.1 million just prior to the exercise of the purchase option and $6.5 million as of December 31, 2020, respectively. Accumulated amortization related to this finance lease right-of-use asset was $4.5 million just prior to the exercise of the purchase option and as of June 30, 2021. The aggregate of all other finance lease obligations, finance lease right-of-use assets and related accumulated amortization, were immaterial as of June 30, 2021 and December 31, 2020.
Amortization expense related to our finance lease right-of-use assets, which is primarily included in the “Cost of sales” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and six-month periods ended June 30, 2021 and 2020. Interest expense related to our finance lease obligations, which is included in the “Interest expense, net” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and six-month periods ended June 30, 2021 and 2020. Payments made on the principal portion of our finance lease obligations were
immaterial for each of the three- and six-month periods ended June 30, 2021 and 2020, excluding the $5.0 million net cash payment to exercise the Eschenbach, Germany manufacturing facility purchase option.
We have operating leases primarily related to building space and vehicles. Renewal options are included in the lease term to the extent we are reasonably certain to exercise the option. The exercise of lease renewal options is at our sole discretion. We account for lease components separately from non-lease components. The incremental borrowing rate represents our ability to borrow on a collateralized basis over a similar lease term.
Our expenses and payments for operating leases were as follows:
Three Months EndedSix Months Ended
(Dollars in thousands)June 30, 2021June 30, 2020June 30, 2021June 30, 2020
Operating leases expense$779 $694 $1,460 $1,422 
Short-term leases expense$56 $107 $130 $230 
Payments on operating lease obligations$665 $722 $1,335 $1,468 
Our assets and liabilities balances related to finance and operating leases reflected in the condensed consolidated statements of financial position were as follows:
(Dollars in thousands)Location in Statements of
Financial Position		June 30, 2021December 31, 2020
Finance lease right-of-use assetsProperty, plant and equipment, net$418 $7,017 
Operating lease right-of-use assetsOther long-term assets$4,565 $4,216 
Finance lease obligations, current portionOther accrued liabilities$219 $4,755 
Finance lease obligations, non-current portionOther long-term liabilities$161 $322 
Total finance lease obligations$380 $5,077 
Operating lease obligations, current portionOther accrued liabilities$2,164 $2,275 
Operating lease obligations, non-current portionOther long-term liabilities$2,431 $2,219 
Total operating lease obligations$4,595 $4,494 
Net Future Minimum Lease Payments
The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of June 30, 2021:
FinanceOperating
(Dollars in thousands)Leases SignedLess: Leases Not Yet CommencedLeases in EffectLeases SignedLess: Leases Not Yet CommencedLeases in Effect
202115 — 15 1,232 (10)1,222 
2022412 (218)194 2,057 (33)2,024 
2023478 (291)187 1,238 (33)1,205 
2024291 (291)— 323 (24)299 
2025291 (291)— 43 (5)38 
Thereafter362 (362)— 7 (4)3 
Total lease payments1,849 (1,453)396 4,900 (109)4,791 
Less: Interest(75)59 (16)(199)3 (196)
Present Value of Net Future Minimum Lease Payments1,774 (1,394)380 4,701 (106)4,595 
The following table includes information regarding the lease term and discount rates utilized in the calculation of the present value of net future minimum lease payments:
Finance
Leases		Operating
Leases
Weighted Average Remaining Lease Term2.3 years2.4 years
Weighted Average Discount Rate3.70%3.58%
Leases Leases
We had a finance lease obligation related to our manufacturing facility in Eschenbach, Germany. Under the terms of the lease agreement, we had an option to purchase the property upon the expiration of the lease on June 30, 2021 at a price which was the greater of (i) the then-current market value or (ii) the residual book value of the land including the buildings and installations thereon. We exercised this purchase option with a net cash payment of $5.0 million on June 30, 2021, extinguishing the remaining finance lease obligation and finance lease right-of-use asset related to this facility. Our finance lease obligation related to this facility was $4.2 million just prior to the exercise of the purchase option and $4.5 million as of December 31, 2020. The finance lease right-of-use asset balance for this facility was $6.1 million just prior to the exercise of the purchase option and $6.5 million as of December 31, 2020, respectively. Accumulated amortization related to this finance lease right-of-use asset was $4.5 million just prior to the exercise of the purchase option and as of June 30, 2021. The aggregate of all other finance lease obligations, finance lease right-of-use assets and related accumulated amortization, were immaterial as of June 30, 2021 and December 31, 2020.
Amortization expense related to our finance lease right-of-use assets, which is primarily included in the “Cost of sales” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and six-month periods ended June 30, 2021 and 2020. Interest expense related to our finance lease obligations, which is included in the “Interest expense, net” line item of the condensed consolidated statements of operations, was immaterial for each of the three- and six-month periods ended June 30, 2021 and 2020. Payments made on the principal portion of our finance lease obligations were
immaterial for each of the three- and six-month periods ended June 30, 2021 and 2020, excluding the $5.0 million net cash payment to exercise the Eschenbach, Germany manufacturing facility purchase option.
We have operating leases primarily related to building space and vehicles. Renewal options are included in the lease term to the extent we are reasonably certain to exercise the option. The exercise of lease renewal options is at our sole discretion. We account for lease components separately from non-lease components. The incremental borrowing rate represents our ability to borrow on a collateralized basis over a similar lease term.
Our expenses and payments for operating leases were as follows:
Three Months EndedSix Months Ended
(Dollars in thousands)June 30, 2021June 30, 2020June 30, 2021June 30, 2020
Operating leases expense$779 $694 $1,460 $1,422 
Short-term leases expense$56 $107 $130 $230 
Payments on operating lease obligations$665 $722 $1,335 $1,468 
Our assets and liabilities balances related to finance and operating leases reflected in the condensed consolidated statements of financial position were as follows:
(Dollars in thousands)Location in Statements of
Financial Position		June 30, 2021December 31, 2020
Finance lease right-of-use assetsProperty, plant and equipment, net$418 $7,017 
Operating lease right-of-use assetsOther long-term assets$4,565 $4,216 
Finance lease obligations, current portionOther accrued liabilities$219 $4,755 
Finance lease obligations, non-current portionOther long-term liabilities$161 $322 
Total finance lease obligations$380 $5,077 
Operating lease obligations, current portionOther accrued liabilities$2,164 $2,275 
Operating lease obligations, non-current portionOther long-term liabilities$2,431 $2,219 
Total operating lease obligations$4,595 $4,494 
Net Future Minimum Lease Payments
The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of June 30, 2021:
FinanceOperating
(Dollars in thousands)Leases SignedLess: Leases Not Yet CommencedLeases in EffectLeases SignedLess: Leases Not Yet CommencedLeases in Effect
202115 — 15 1,232 (10)1,222 
2022412 (218)194 2,057 (33)2,024 
2023478 (291)187 1,238 (33)1,205 
2024291 (291)— 323 (24)299 
2025291 (291)— 43 (5)38 
Thereafter362 (362)— 7 (4)3 
Total lease payments1,849 (1,453)396 4,900 (109)4,791 
Less: Interest(75)59 (16)(199)3 (196)
Present Value of Net Future Minimum Lease Payments1,774 (1,394)380 4,701 (106)4,595 
The following table includes information regarding the lease term and discount rates utilized in the calculation of the present value of net future minimum lease payments:
Finance
Leases		Operating
Leases
Weighted Average Remaining Lease Term2.3 years2.4 years
Weighted Average Discount Rate3.70%3.58%