Leases

12 Months Ended

Dec. 31, 2021

On January 1, 2020, the Company adopted the accounting guidance under ASC 842 “Leases”, as issued by the FASB under ASU 2016-02, by applying the modified retrospective method without restatement of comparative periods’ financial information. More information regarding the Company’s accounting policies can be found in Note 3, New Accounting Pronouncements.

The Company leases certain industrial spaces, land, and equipment. Some leases include one or more options to renew, with renewal terms that can extend the lease term from generally one to five years. The exercise of lease renewal options is at the

Company’s sole discretion, and are included in the lease term only to the extent such renewal options are reasonably certain of being exercised at lease commencement. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. As of December 31, 2021, leases that the Company has signed but have not yet commenced are immaterial.

Leased assets and liabilities included within the consolidated balance sheets consist of the following:


	Classification	December 31, 2021		December 31, 2020
		(dollars in thousands)
Right-of-Use-Assets
Operating	Operating Leases	$	9,776	$	10,415
Liabilities
Current
Operating	Other accrued liabilities	$	1,812	$	2,309
Non-current
Operating	Other long term liabilities	8,648		8,911
Total lease liabilities		$	10,460	$	11,220

Maturity of the Company’s lease liabilities as of December 31, 2021 is as follows:


	Estimated Future Lease Liability Maturities
	(dollars in thousands)
2022	$	2,426
2023	1,756
2024	1,669
2025	1,660
2026	1,471
Thereafter	4,225
Total lease payments	13,207
Less: interest	2,747
Present value of lease payments	$	10,460

As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate base on the information available at the commencement date in determining the present value of lease payments. Remaining lease term and discount rates are as follows:


	December 31, 2021		December 31, 2020
Weighted average remaining lease term (years)	7		7
Weighted average discount rate	6.52	%	6.39	%

Lease costs included in the consolidated statements of cash flows are as follows:


	Twelve Months Ended December 31, 2021		Twelve Months Ended December 31, 2020
	(dollars in thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from operating leases	$	2,981	$	3,335