LEASES

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

LEASES

LEASES

The Company leases certain industrial spaces, office space, land, and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Some leases include one or more options to renew, with renewal terms that can extend the lease term from one to 5 years. The exercise of lease renewal options is at the Company’s sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

Leased assets and liabilities included within the Condensed Consolidated Balance Sheets consist of the following (in thousands):

	Classification	March 31, 2019
Right-of-Use Assets
Operating	Other assets	$	12,081
Finance	Property, plant and equipment, net of depreciation	3,053
Total Leased ROU Assets		$	15,134
Liabilities
Current
Operating	Other accrued liabilities	$	3,640
Finance	Current portion of finance lease obligations	313
Noncurrent
Operating	Non-current liabilities	8,476
Finance	Finance lease obligations	625
Total lease liabilities		$	13,054

Lease costs included in the Condensed Consolidated Statements of Operations consist of the following (in thousands):

	Classification	Three Months Ended March 31, 2019
Operating lease cost	Cost of sales, selling expenses and general and administrative expense	$	1,072
Finance lease cost
Amortization of ROU leased assets	Depreciation and amortization	36
Interest on lease liabilities	Interest expense	15
Net lease cost		$	1,123

Maturity of the Company’s lease liabilities is as follows (in thousands):

	Operating Leases		Finance Leases		Total
2019 (remainder)	$	3,074	$	271	$	3,345
2020	3,289		361		3,650
2021	2,708		361		3,069
2022	1,480		30		1,510
2023	1,266		—		1,266
Thereafter	1,812		—		1,812
Total lease payments	$	13,629	$	1,023	$	14,652
Less: interest	1,514		85
Present value of lease payments	$	12,115	$	938

As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Remaining lease term and discount rates are as follows:

	March 31, 2019
Weighted average remaining lease term (years)
Operating leases	4.6
Finance leases	2.8
Weighted average discount rate
Operating leases	5.16	%
Finance leases	6.16	%

Lease costs included in the Condensed Consolidated Statements of Cash Flows are as follows (in thousands):

	Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,038
Operating cash flows from finance leases	$	15
Financing cash flows from finance leases	$	75

LEASES

LEASES

The Company leases certain industrial spaces, office space, land, and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Some leases include one or more options to renew, with renewal terms that can extend the lease term from one to 5 years. The exercise of lease renewal options is at the Company’s sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

Leased assets and liabilities included within the Condensed Consolidated Balance Sheets consist of the following (in thousands):

	Classification	March 31, 2019
Right-of-Use Assets
Operating	Other assets	$	12,081
Finance	Property, plant and equipment, net of depreciation	3,053
Total Leased ROU Assets		$	15,134
Liabilities
Current
Operating	Other accrued liabilities	$	3,640
Finance	Current portion of finance lease obligations	313
Noncurrent
Operating	Non-current liabilities	8,476
Finance	Finance lease obligations	625
Total lease liabilities		$	13,054

Lease costs included in the Condensed Consolidated Statements of Operations consist of the following (in thousands):

	Classification	Three Months Ended March 31, 2019
Operating lease cost	Cost of sales, selling expenses and general and administrative expense	$	1,072
Finance lease cost
Amortization of ROU leased assets	Depreciation and amortization	36
Interest on lease liabilities	Interest expense	15
Net lease cost		$	1,123

Maturity of the Company’s lease liabilities is as follows (in thousands):

	Operating Leases		Finance Leases		Total
2019 (remainder)	$	3,074	$	271	$	3,345
2020	3,289		361		3,650
2021	2,708		361		3,069
2022	1,480		30		1,510
2023	1,266		—		1,266
Thereafter	1,812		—		1,812
Total lease payments	$	13,629	$	1,023	$	14,652
Less: interest	1,514		85
Present value of lease payments	$	12,115	$	938

As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Remaining lease term and discount rates are as follows:

	March 31, 2019
Weighted average remaining lease term (years)
Operating leases	4.6
Finance leases	2.8
Weighted average discount rate
Operating leases	5.16	%
Finance leases	6.16	%

Lease costs included in the Condensed Consolidated Statements of Cash Flows are as follows (in thousands):

	Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,038
Operating cash flows from finance leases	$	15
Financing cash flows from finance leases	$	75