Note 7 - Leases

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

7. Leases

The Company has operating leases for manufacturing and upfit facilities, land and parking lots, warehousing space and certain equipment. The leases have remaining lease terms of less than one year to 13 years, some of which include options to extend the leases for up to 10 years. Such renewal options were not included in the determination of the lease term unless deemed reasonably certain of exercise. The discount rate used in measuring the lease liabilities is based on the Company’s interest rate on its secured Term Loan Credit Agreement. Certain of the Company’s leases contain escalating rental payments based on an index. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Lease Expense

The components of lease expense, which are included in Cost of sales and Selling, general and administrative expenses on the Condensed Consolidated Statements of Operations and Comprehensive Income, were as follows:

	Three Months Ended September 30, 2023		Nine Months Ended September 30, 2023		Three Months Ended September 30, 2022		Nine Months Ended September 30, 2022
Operating lease expense	$	1,545	$	4,354	$	1,376	$	4,158
Short term lease cost	$	48	$	316	$	85	$	274
Total lease cost	$	1,593	$	4,670	$	1,461	$	4,432

Cash Flow

Supplemental cash flow information related to leases is as follows:

	Nine Months Ended September 30, 2023		Nine Months Ended September 30, 2022
Cash paid for amounts included in the measurement of operating lease liabilities	$	4,597	$	4,301
Non-cash lease expense - right-of-use assets	$	3,735	$	3,566
Right-of-use assets obtained in exchange for operating lease obligations	$	3,411	$	2,126

Balance Sheet

Supplemental balance sheet information related to leases is as follows:  

	September 30, 2023			December 31, 2022
Operating Leases
Operating lease right-of-use assets	$	17,145		$	17,432
Other current liabilities		5,149			4,862
Operating lease liabilities		13,261			14,025
Total operating lease liabilities	$	18,410		$	18,887
Weighted Average Remaining Lease Term
Operating leases (in months)		54			59
Weighted Average Discount Rate
Operating leases		5.09	%		4.69	%

Lease Maturities

Maturities of leases were as follows:

Year ending December 31,	Operating Leases
2023 (excluding the nine months ended September 30, 2023)	$	1,572
2024		5,684
2025		4,862
2026		3,498
2027		2,152
Thereafter		2,690
Total Lease Payments		20,458
Less: imputed interest		(2,048	)
Total	$	18,410