Note 13 - Leases

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Lessee, Operating Leases and Financing Leases [Text Block]

Note 13 – Leases

The Company accounts for leases in accordance with ASC 842, Leases. The Company has operating leases for office space, manufacturing facilities and certain company vehicles and equipment and finance leases for certain company equipment. The leases have remaining lease terms of one year to eight years. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. As of December 31, 2020, the operating lease liability does not include any options to extend or terminate leases.

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease assets, current operating lease liabilities and long-term operating lease liabilities in the Consolidated Balance Sheets and are recognized based on the present value of lease payments over the lease term at commencement date. Finance leases are included in finance lease assets, current finance lease liabilities and long-term finance lease liabilities in the Consolidated Balance Sheets and are recognized based on the present value of lease payments over the lease term at commencement date. The majority of the Company’s leases do not provide an implicit rate of return, therefore, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease agreements that contain non-lease components, with the exception of certain real estate leases, are accounted for as a single lease component.

Supplemental balance sheet information related to leases was as follows:

	December 31,
(in thousands)	2020		2019
Operating lease assets	$	9,855	$	11,425
Current operating lease liabilities	$	3,272	$	3,340
Long-term operating lease liabilities		7,586		8,565
Total operating lease liabilities	$	10,858	$	11,905
Finance lease assets	$	2,396	$	-
Current finance lease liabilities	$	552	$	-
Long-term finance lease liabilities		1,919		-
Total finance lease liabilities	$	2,471	$	-

Lease expense is recognized on a straight-line basis over the lease term, with variable payments recognized in the period those payments are incurred. The components of lease expense for the periods reported were as follows:

	Twelve Months Ended December 31,
(in thousands)	2020		2019
Operating lease cost	$	4,191	$	3,960
Finance lease cost:
Amortization of right-of-use assets	$	143	$	-
Interest on lease obligations	$	2	$	-
Variable lease cost		989		1,039
Total lease cost	$	5,325	$	4,999

Maturities of operating and finance lease liabilities as of December 31, 2020 were as follows:

(in thousands)	Operating Leases			Finance Leases
Year Ending December 31,
2021	$	3,915		$	561
2022		3,246			561
2023		1,460			1,371
2024		540			-
2025		494			-
After 2025		1,751			-
Total future minimum lease payments		11,406			2,493
Less interest		(548	)		(22	)
Present value of lease liabilities	$	10,858		$	2,471

As of December 31, 2020, we have no operating or finance leases that have not yet commenced.

Weighted average remaining lease term and discount rate was as follows: 

	December 31,
	2020			2019
Weighted Average Remaining Lease Term - operating leases (years)		4.4			4.8
Weighted Average Remaining Lease Term - finance leases (years)		2.5			-
Weighted Average Discount Rate - operating leases		2.6	%		2.6	%
Weighted Average Discount Rate - finance leases		0.5	%		-

Supplemental cash flow information related to leases was as follows:

	Twelve Months Ended December 31,
(in thousands)	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,426	$	5,020
Operating cash flows from finance leases	$	2	$	-
Financing cash flows from finance leases	$	154	$	-
Lease assets obtained in exchange for new operating lease liabilities		1,506		1,921
Lease assets obtained in exchange for new financing lease liabilities		2,523		-