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Leases
12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases

NOTE 15 - LEASES

 

The Company determines whether an arrangement is or contains a lease at the inception of the arrangement. Operating leases are accounted for in other non-current assets, accrued expenses and other non-current liabilities in our consolidated balance sheets. Finance leases are included in property, plant and equipment, net, short-term debt and long-term debt (less current portion) in our consolidated balance sheets.

Right-of-use (ROU) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of the lease payments over the lease term. Since we generally do not have access to the interest rate implicit in the lease, the Company uses our incremental borrowing rate (for fully collateralized debt) at the inception of the lease in determining the present value of the lease payments. The implicit rate is, however, used where readily available. Lease expense under operating leases is recognized on a straight-line basis over the term of the lease. Certain of our leases contain both lease and non-lease components, which are accounted for separately.

The Company has operating and finance leases for office facilities, a data center and certain equipment. The remaining terms of our leases range from over one year to nine years. Certain leases include options to extend the lease term for up to ten years, as well as options to terminate both of which have been excluded from the term of the lease since exercise of these options is not reasonably certain.

Lease expense, cash flow, operating and finance lease assets and liabilities, average lease term and average discount rate are as follows:

 

Year Ended December 31,

 

2020

 

 

2019

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

Lease Expense

 

 

 

 

 

 

 

 

Finance lease expense:

 

 

 

 

 

 

 

 

     Amortization of right-of-use assets

 

$

1,219

 

 

$

1,691

 

     Interest on lease liabilities

 

 

85

 

 

 

83

 

Operating lease expense

 

 

3,388

 

 

 

3,509

 

     Total lease expense

 

$

4,692

 

 

$

5,283

 

 

 

 

 

 

 

 

 

 

Cash Flow Components

 

 

 

 

 

 

 

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

     Operating cash outflows from finance leases

 

$

85

 

 

$

83

 

     Operating cash outflows from operating leases

 

 

3,621

 

 

 

3,463

 

     Financing cash outflows from finance leases

 

 

960

 

 

 

1,230

 

Right-of-use assets obtained in exchange for finance lease liabilities,

     net of terminations and disposals

 

 

879

 

 

 

2,573

 

Right-of-use assets obtained in exchange for operating lease liabilities,

     net of terminations and disposals

 

 

657

 

 

 

18,961

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

2020

 

 

2019

 

(Dollars in thousands, except lease term and discount rate)

 

 

 

 

 

 

 

 

Balance Sheet Information

 

 

 

 

 

 

 

 

Operating leases:

 

 

 

 

 

 

 

 

     Other non-current assets

 

$

13,598

 

 

$

15,201

 

     Accrued liabilities

 

$

(2,868

)

 

$

(2,949

)

     Other non-current liabilities

 

 

(11,513

)

 

 

(13,282

)

          Total operating lease liabilities

 

$

(14,381

)

 

$

(16,231

)

 

 

 

 

 

 

 

 

 

Finance leases:

 

 

 

 

 

 

 

 

     Property, plant and equipment gross

 

$

5,735

 

 

$

4,821

 

     Accumulated depreciation

 

 

(3,319

)

 

 

(2,118

)

     Property, plant and equipment, net

 

$

2,416

 

 

$

2,703

 

     Current portion of long-term debt

 

$

(1,113

)

 

$

(1,023

)

     Long-term debt (less current portion)

 

 

(2,275

)

 

 

(2,045

)

          Total finance lease liabilities

 

$

(3,388

)

 

$

(3,068

)

 

 

 

 

 

 

 

 

 

Lease Term and Discount Rates

 

 

 

 

 

 

 

 

Weighted-average remaining lease term - finance leases (years)

 

 

3.9

 

 

 

4.1

 

Weighted-average remaining lease term - operating leases (years)

 

 

6.1

 

 

 

6.4

 

Weighted-average discount rate - finance leases

 

 

3.0

%

 

 

2.9

%

Weighted-average discount rate - operating leases

 

 

3.8

%

 

 

3.9

%

 

 

Summarized future minimum payments under our leases are as follows:

 

Year Ended December 31,

 

Amount

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

Lease Maturities

 

Finance Leases

 

 

Operating Leases

 

2021

 

$

1,186

 

 

$

2,879

 

2022

 

 

1,080

 

 

 

2,870

 

2023

 

 

568

 

 

 

2,499

 

2024

 

 

160

 

 

 

2,279

 

2025

 

 

152

 

 

 

2,229

 

Thereafter

 

 

425

 

 

 

3,163

 

Total

 

 

3,571

 

 

 

15,919

 

Less: Imputed interest

 

 

(183

)

 

 

(1,538

)

Total lease liabilities, net of interest

 

$

3,388

 

 

$

14,381