Other Long-Term Liabilities

6 Months Ended

Jun. 30, 2020

Liabilities, Other than Long-term Debt, Noncurrent [Abstract]

Other Long-Term Liabilities

12.Other Long-Term Liabilities

Other long-term liabilities at June 30, 2020 and December 31, 2019 consisted of the following:

	June 30, 2020		December 31, 2019
Sale-leaseback arrangement	$	17,120	$	17,447
Deferred compensation		2,535		2,528
Accrual for insurance liabilities		362		461
Total other long-term liabilities	$	20,017	$	20,436

Sale-Leaseback Arrangement

On September 27, 2019, the Company entered into a purchase and sale agreement (the “Purchase and Sale Agreement”). Pursuant to the terms of the Purchase and Sale Agreement, the Company sold its 17300 & 17140 Market Street location in Channelview, Texas (the “Property”) for a purchase price of $19.1 million. Concurrent with the sale of the Property, the Company entered into a fifteen year lease agreement (the “Lease Agreement”), whereby the Company will lease back the Property at an annual rental rate of approximately $1.5 million, subject to annual rent increases of 2.0%. Under the Lease Agreement, the Company has two consecutive options to extend the term of the Lease by ten years for each such option. This transaction was recorded as a failed sale-leaseback. The Company recorded a liability for the amounts received, will continue to depreciate the non-land portion of the asset, and has imputed an interest rate so that the net carrying amount of the financial liability and remaining assets will be zero at the end of the initial lease term. Concurrently with the sale, the Company paid $18.2 million towards the Term loan portion of the Company’s Credit Facility, consistent with terms of the Sixth Amendment.