LEASE COMMITMENTS

12 Months Ended

Dec. 31, 2020

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 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 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	2020
Operating lease ROU assets	Operating lease assets	$	24,356

Operating lease current liabilities	Other current liabilities	$	7,533
Operating lease long-term liabilities	Other long-term liabilities	17,137
Total operating lease liabilities		$	24,670

Finance lease, gross	Property, plant & equipment, net	$	6,785
Finance lease accumulated depreciation	Property, plant & equipment, net	(3,279)
Finance lease, net		$	3,506

Finance lease current liabilities	Other current liabilities	$	608
Finance lease long-term liabilities	Other long-term liabilities	2,072
Total finance lease liabilities		$	2,680

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


	Operating Leases		Finance Leases
2021	$	9,241	$	1,051
2022	7,174		1,000
2023	4,796		739
2024	2,494		307
2025	1,266		103
Thereafter	3,186		39
Total future minimum lease payments	$	28,157	$	3,239
Less imputed interest	3,487		559
	$	24,670	$	2,680

Weighted average remaining lease term (in years)	4.22		3.36

Supplemental cash flow information related to leases for year ended December 31, 2020 were as follows: operating cash flows from operating leases were $8.7 million and operating cash flows from finance leases were $0.3 million.