Leases

6 Months Ended

Jun. 30, 2019

Leases

Lessee, Operating Leases [Text Block]

6. 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 17 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	Six Months Ended
	June 30, 2019	June 30, 2019
Operating lease expense	$ 1,144	$ 2,276
Short term lease cost	$ 96	$ 196
Total lease cost	$ 1,240	$ 2,472

Cash Flow

Supplemental cash flow information related to leases is as follows:

	Six Months Ended
	June 30, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$ 2,209
Non-cash lease expense - right-of-use assets	$ 1,702
Right-of-use assets obtained in exchange for operating lease obligations	$ 2,099

Balance Sheet

Supplemental balance sheet information related to leases is as follows:  

	June 30, 2019
Operating Leases
Operating lease right-of-use assets	$ 22,324
Other current liabilities	3,480
Operating lease liabilities	19,023
Total operating lease liabilities	$ 22,503
Weighted Average Remaining Lease Term
Operating leases	83	months
Weighted Average Discount Rate
Operating leases	5.36%

Lease Maturities

Maturities of leases were as follows:

Year ending December 31,	Operating Leases
2019 (excluding the six months ended June 30, 2019)	$ 2,318
2020	4,392
2021	4,132
2022	3,815
2023	3,369
Thereafter	8,831
Total Lease Payments	26,857
Less: imputed interest	(4,354)
Total	$ 22,503

Related party leases

The Company entered into lease agreements at the time of the close of the Dejana acquisition with parties that are affiliated with the former owners of Dejana and remain affiliated with Dejana post - acquisition.  The related parties continue to own land and buildings where Dejana conducts business.  As of June 30, 2019, the Company had 9 operating leases at Dejana upfitting and manufacturing facilities with related party affiliates. The Company incurred $534 and $1,068 of total rent expense to related parties in the three and six months ended June 30, 2019, respectively.  As the Company makes monthly payments to the related parties, there are no amounts owed to the related parties at June 30, 2019.

ASC 840 Disclosure

As required in transition, the below summarizes the Company’s future minimum lease payments at December 31, 2018 under ASC 840:

		Related Party Leases		Third Party Leases		Total Leases
2019	$	2,250	$	2,009	$	4,259
2020		2,250		1,654		3,904
2021		2,250		1,364		3,614
2022		2,250		949		3,199
2023		2,130		574		2,704
Thereafter		4,410		1,500		5,910
Total lease obligations	$	15,540	$	8,050	$	23,590