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Leases
 9 Months Ended
Sep. 30, 2022
Leases [Abstract]  
Leases Leases
Rockwell leases its production facilities and administrative offices as well as certain equipment used in its operations including leases on transportation equipment used in the delivery of its products. The lease terms range from monthly to six years. Rockwell occupies a 51,000 square foot facility and a 17,500 square foot facility in Wixom, Michigan under a lease expiring in August 2024. Rockwell also occupies two other manufacturing facilities, a 51,000 square foot facility in Grapevine, Texas under a lease expiring in December 2025, and a 57,000 square foot facility in Greer, South Carolina under a lease expiring February 2026. In addition, Rockwell occupied 4,100 square feet of office space in Hackensack, New Jersey under a lease expiring on October 31, 2024. This lease was subleased on December 15, 2021 with an expiration date of October 31, 2024.
At September 30, 2022, the Company had operating and finance lease liabilities of $7.2 million and right-of-use assets of $6.9 million, which are included in the consolidated balance sheet.
At December 31, 2021, the Company had operating lease liabilities of $7.9 million and right-of-use assets of $7.7 million, which are included in the consolidated balance sheet.
The following summarizes quantitative information about the Company’s operating leases (table in thousands):
Three Months Ended September 30, 2022Three Months Ended September 30, 2021Nine Months Ended September 30, 2022Nine Months Ended September 30, 2021
Operating leases
Operating lease cost$410 $457 $1,289 $1,309 
Variable lease cost101 94 287 286 
Operating lease expense511 551 1,576 1,595 
Finance leases
Amortization of right-of-use assets141 73 424 184 
Interest on lease obligations44 22 136 55 
Finance lease expense185 95 560 239 
Short-term lease rent expense5 4 14 12 
Total rent expense$701 $650 $2,150 $1,846 
Other information
Operating cash flows from operating leases$427 $444 $1,338 $1,298 
Operating cash flows from finance leases$44 $22 $136 $56 
Financing cash flows from finance leases$121 $59 $359 $152 
Right of use assets exchanged for operating lease liabilities$768 $718 $768 $4,089 
Right of use assets exchanged for finance lease liabilities$— $588 $— $1,365 
Weighted-average remaining lease term – operating leases3.23.73.23.7
Weighted-average remaining lease term – finance leases4.75.54.75.5
Weighted-average discount rate – operating leases6.4 %6.3 %6.4 %6.3 %
Weighted-average discount rate – finance leases6.4 %5.9 %6.4 %5.9 %
Future minimum rental payments under operating lease agreements are as follows (in thousands):
OperatingFinance
Year ending December 31, 2022 (remaining)$434 $165 
Year ending December 31, 20231,692 669 
Year ending December 31, 20241,404 672 
Year ending December 31, 2025937 676 
Year ending December 31, 2026310 666 
Remaining future payments120 311 
Total$4,897 $3,159 
Less present value discount(467)(426)
Operating and finance lease liabilities$4,430 $2,733 
Leases Leases
Rockwell leases its production facilities and administrative offices as well as certain equipment used in its operations including leases on transportation equipment used in the delivery of its products. The lease terms range from monthly to six years. Rockwell occupies a 51,000 square foot facility and a 17,500 square foot facility in Wixom, Michigan under a lease expiring in August 2024. Rockwell also occupies two other manufacturing facilities, a 51,000 square foot facility in Grapevine, Texas under a lease expiring in December 2025, and a 57,000 square foot facility in Greer, South Carolina under a lease expiring February 2026. In addition, Rockwell occupied 4,100 square feet of office space in Hackensack, New Jersey under a lease expiring on October 31, 2024. This lease was subleased on December 15, 2021 with an expiration date of October 31, 2024.
At September 30, 2022, the Company had operating and finance lease liabilities of $7.2 million and right-of-use assets of $6.9 million, which are included in the consolidated balance sheet.
At December 31, 2021, the Company had operating lease liabilities of $7.9 million and right-of-use assets of $7.7 million, which are included in the consolidated balance sheet.
The following summarizes quantitative information about the Company’s operating leases (table in thousands):
Three Months Ended September 30, 2022Three Months Ended September 30, 2021Nine Months Ended September 30, 2022Nine Months Ended September 30, 2021
Operating leases
Operating lease cost$410 $457 $1,289 $1,309 
Variable lease cost101 94 287 286 
Operating lease expense511 551 1,576 1,595 
Finance leases
Amortization of right-of-use assets141 73 424 184 
Interest on lease obligations44 22 136 55 
Finance lease expense185 95 560 239 
Short-term lease rent expense5 4 14 12 
Total rent expense$701 $650 $2,150 $1,846 
Other information
Operating cash flows from operating leases$427 $444 $1,338 $1,298 
Operating cash flows from finance leases$44 $22 $136 $56 
Financing cash flows from finance leases$121 $59 $359 $152 
Right of use assets exchanged for operating lease liabilities$768 $718 $768 $4,089 
Right of use assets exchanged for finance lease liabilities$— $588 $— $1,365 
Weighted-average remaining lease term – operating leases3.23.73.23.7
Weighted-average remaining lease term – finance leases4.75.54.75.5
Weighted-average discount rate – operating leases6.4 %6.3 %6.4 %6.3 %
Weighted-average discount rate – finance leases6.4 %5.9 %6.4 %5.9 %
Future minimum rental payments under operating lease agreements are as follows (in thousands):
OperatingFinance
Year ending December 31, 2022 (remaining)$434 $165 
Year ending December 31, 20231,692 669 
Year ending December 31, 20241,404 672 
Year ending December 31, 2025937 676 
Year ending December 31, 2026310 666 
Remaining future payments120 311 
Total$4,897 $3,159 
Less present value discount(467)(426)
Operating and finance lease liabilities$4,430 $2,733