LEASE COMMITMENTS (Notes)

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Lessee, Operating Leases [Text Block]

LEASES

The Company leases certain buildings and equipment under both operating and finance leases.  Certain lease agreements provide for renewal options, fair value purchase options, and payment of property taxes, maintenance, and insurance by the Company. Under ASC 842, the Company made an accounting policy election, by class of underlying asset, not to separate non-lease components such as those previously stated from lease components and instead will treat the lease agreement as a single lease component for all asset classes. Operating right-of-use (ROU) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent Titan's obligations to make lease payments arising from the lease. The majority of Titan's leases are operating leases. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of Titan's leases do not provide an implicit interest rate, the Company used its incremental borrowing rate (6.79%), based on the information available at the lease commencement date, in determining the present value of lease payments. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales and selling, general and administrative expenses on the Condensed Consolidated Statement of Operations. Amortization expense associated with finance leases is included in cost of sales and selling, general and administrative expenses, and interest expense associated with finance leases is included in interest expense in the Condensed Consolidated Statement of Operations. Short-term operating leases, which have an initial term of twelve months or less, are not recorded on the balance sheet.

Supplemental balance sheet information related to leases was as follows (amounts in thousands):

	Balance Sheet Classification	March 31, 2020			December 31, 2019
Operating lease ROU assets	Operating lease assets	$	20,117		$	23,914
Operating lease current liabilities	Other current liabilities	$	5,767		$	6,729
Operating lease long-term liabilities	Other long-term liabilities	14,828			17,360
Total operating lease liabilities		$	20,595		$	24,089
Finance lease, gross	Property, plant & equipment, net	$	6,226		$	6,684
Finance lease accumulated depreciation	Property, plant & equipment, net	(2,122		)	(2,194		)
Finance lease, net		$	4,104		$	4,490
Finance lease current liabilities	Other current liabilities	$	1,121		$	1,110
Finance lease long-term liabilities	Long-term debt	3,681			3,770
Total finance lease liabilities		$	4,802		$	4,880

At March 31, 2020, maturity of lease liabilities were as follows (amounts in thousands):

	Operating Leases		Finance Leases
April 1 - December 31, 2020	$	5,405	$	1,127
2021	5,730		1,476
2022	4,453		1,392
2023	3,138		978
2024	1,850		346
Thereafter	3,498		175
Total lease payments	$	24,074	$	5,494
Less imputed interest	3,479		692
	$	20,595	$	4,802
Weighted average remaining lease term (in years)	4.6		3.9

Supplemental cash flow information related to leases for the three months ended March 31, 2020 were as follows: operating cash flows from operating leases were $2.1 million and operating cash flows from finance leases were $0.1 million.

Lessee, Finance Leases [Text Block]

LEASES

The Company leases certain buildings and equipment under both operating and finance leases.  Certain lease agreements provide for renewal options, fair value purchase options, and payment of property taxes, maintenance, and insurance by the Company. Under ASC 842, the Company made an accounting policy election, by class of underlying asset, not to separate non-lease components such as those previously stated from lease components and instead will treat the lease agreement as a single lease component for all asset classes. Operating right-of-use (ROU) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent Titan's obligations to make lease payments arising from the lease. The majority of Titan's leases are operating leases. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of Titan's leases do not provide an implicit interest rate, the Company used its incremental borrowing rate (6.79%), based on the information available at the lease commencement date, in determining the present value of lease payments. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales and selling, general and administrative expenses on the Condensed Consolidated Statement of Operations. Amortization expense associated with finance leases is included in cost of sales and selling, general and administrative expenses, and interest expense associated with finance leases is included in interest expense in the Condensed Consolidated Statement of Operations. Short-term operating leases, which have an initial term of twelve months or less, are not recorded on the balance sheet.

Supplemental balance sheet information related to leases was as follows (amounts in thousands):

	Balance Sheet Classification	March 31, 2020			December 31, 2019
Operating lease ROU assets	Operating lease assets	$	20,117		$	23,914
Operating lease current liabilities	Other current liabilities	$	5,767		$	6,729
Operating lease long-term liabilities	Other long-term liabilities	14,828			17,360
Total operating lease liabilities		$	20,595		$	24,089
Finance lease, gross	Property, plant & equipment, net	$	6,226		$	6,684
Finance lease accumulated depreciation	Property, plant & equipment, net	(2,122		)	(2,194		)
Finance lease, net		$	4,104		$	4,490
Finance lease current liabilities	Other current liabilities	$	1,121		$	1,110
Finance lease long-term liabilities	Long-term debt	3,681			3,770
Total finance lease liabilities		$	4,802		$	4,880

At March 31, 2020, maturity of lease liabilities were as follows (amounts in thousands):

	Operating Leases		Finance Leases
April 1 - December 31, 2020	$	5,405	$	1,127
2021	5,730		1,476
2022	4,453		1,392
2023	3,138		978
2024	1,850		346
Thereafter	3,498		175
Total lease payments	$	24,074	$	5,494
Less imputed interest	3,479		692
	$	20,595	$	4,802
Weighted average remaining lease term (in years)	4.6		3.9

Supplemental cash flow information related to leases for the three months ended March 31, 2020 were as follows: operating cash flows from operating leases were $2.1 million and operating cash flows from finance leases were $0.1 million.