Leases, Codification Topic 842

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Rental Expense And Contractual Commitments

Tredegar has various lease agreements with terms up to 10 years, including leases of real estate, office equipment and vehicles. Some leases include options to purchase the leased asset, terminate the agreement or extend the term of the agreement for one or more years. These options are included in the lease term when it is reasonably certain that the option will be exercised.

The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s operating leases as of December 31, 2020:

(In thousands)
	Future Lease Payments
2021		$	2,749
2022		2,653
2023		2,525
2024		2,417
2025		2,417
Thereafter		7,404
Total undiscounted operating lease payments		20,165
Less: Imputed interest		3,134
Present value of operating lease liabilities		$	17,031

As of January 1, 2019, an initial right-of-use asset of $20 million was recognized as a non-cash asset addition and an initial lease liability of $22 million was recognized as a non-cash liability addition with the adoption of the new lease accounting standard.

The following table summarizes lease costs, related cash flow and other information for the years ended December 31, 2020 and 2019. These costs are primarily related to long-term operating leases, but also include amounts for variable leases and short-term leases.

(In thousands)	2020			2019
Operating lease expense	$	3,260		$	3,087
Right-of-use assets recognized as non-cash additions from the execution of new operating leases	$	529		$	20,709
Other Information:
Weighted-average remaining lease term for operating leases	8 years			9 years
Weighted-average discount rate for operating leases	4.21		%	4.24		%