XML 38 R16.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Leases
12 Months Ended
Dec. 31, 2019
Leases  
Leases

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 16 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:

​

​

​

​

​

​

Year Ended

​

​

December 31, 2019

Operating lease expense

​

$ 4,857

Short term lease cost

​

$ 380

Total lease cost

​

$ 5,237

​

Cash Flow

​

Supplemental cash flow information related to leases is as follows:

​

​

​

​

Year Ended

​

December 31, 2019

​

​

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

$ 4,679

Non-cash lease expense - right-of-use assets

$ 3,672

Right-of-use assets obtained in exchange for operating lease obligations

$ 5,325

​

Balance Sheet

​

Supplemental balance sheet information related to leases is as follows:  

​

​

​

​

​

December 31, 2019

​

Operating Leases

​

​

Operating lease right-of-use assets

$ 22,557

​

​

​

​

Other current liabilities

3,822

​

Operating lease liabilities

18,981

​

Total operating lease liabilities

$ 22,803

​

​

​

​

Weighted Average Remaining Lease Term

​

​

Operating leases

78

months

​

​

​

Weighted Average Discount Rate

​

​

Operating leases

5.32%

​

​

Lease Maturities

​

Maturities of leases were as follows:

​

​

​

​

Year ending December 31,

​

Operating Leases

2020

​

$ 4,916

2021

​

4,625

2022

​

4,208

2023

​

3,766

2024

​

3,194

Thereafter

​

6,146

Total Lease Payments

​

26,855

Less: imputed interest

​

(4,052)

Total

​

$ 22,803

​

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. Such leases were entered into at market value. As of December 31, 2019, the Company had nine operating leases at Dejana upfitting and manufacturing facilities with related party affiliates. The Company incurred $2,168 of total lease expense to related parties in the year ended December 31, 2019.  As the Company makes monthly payments to the related parties, there are no amounts owed to the related parties at December 31, 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

​