Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

Leases

The Company has leases for equipment, office space, plant sites and distribution centers. Certain of these leases include options to extend the lease and some include options to terminate the lease early. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term.

There are no leases that have not yet commenced that create significant rights and obligations for the Company.

The components of lease cost are shown below:

(Dollars in thousands)	2021		2020		Income Statement Location
Lease Cost
Operating lease cost (1)	$	4,248	$	4,716	Selling, general and administrative expenses
Operating lease cost (2)	6,404		7,406		Cost of sales
Finance lease cost
Amortization of right-of-use assets	461		298		Cost of sales
Interest of lease liabilities	45		33		Interest expense
Net lease cost	$	11,158	$	12,453

(1)Included in operating lease cost is $0.7 million and $0.9 million of short-term lease costs for the years ended December 31, 2021 and 2020, respectively, and $0.4 million and $0.4 million of variable lease costs for the years ended December 31, 2021 and 2020, respectively.

(2)Included in operating lease cost is $2.8 million and $2.7 million of short-term lease costs for the years ended December 31, 2021 and 2020, respectively, and approximately zero variable lease costs for December 31, 2021 and $0.7 million of variable lease costs for 2020.

Supplemental balance sheet information related to leases are shown below:

(Dollars in thousands)	2021		2020		Balance Sheet Location
Assets
Operating leased assets	$	13,186	$	15,446	Operating leased assets
Finance leased assets(1)	1,184		1,410		Property, plant and equipment, net
Total leased assets	$	14,370	$	16,856
Liabilities
Current
Operating	$	4,325	$	5,431	Accrued expenses and other current liabilities
Finance	687		640		Loans payable and current portion of long-term debt
Noncurrent
Operating	8,849		10,064		Operating lease non-current liabilities
Finance	1,810		2,271		Long-term debt, less current portion
Total lease liabilities	$	15,671	$	18,406

(1)Finance leases are net of accumulated depreciation of $3.5 million and $3.1 million for December 31, 2021 and 2020, respectively.

Supplemental cash flow information related to leases are shown below:

(Dollars in thousands)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	45	$	33
Operating cash flows from operating leases	7,014		7,959
Financing cash flows from finance leases	461		331
Leased assets obtained in exchange for new finance lease liabilities	301		961
Leased assets obtained in exchange for new operating lease liabilities	6,412		4,686

	2021
Weighted-average remaining lease term (years)
Operating leases	4.5
Finance leases	4.4
Weighted-average discount rate
Operating leases	4.2	%
Finance leases	4.5	%

Maturities of lease liabilities are shown below as of December 31, 2021:

(Dollars in thousands)	Finance Leases		Operating Leases
2022	$	778	$	5,129
2023	699		3,325
2024	570		2,337
2025	465		1,823
2026	331		1,422
Thereafter	139		1,804
Net minimum lease payments	2,982		15,840
Less: interest	(485)		(2,667)
Present value of lease liabilities	$	2,497	$	13,173

Leases

Leases

The Company has leases for equipment, office space, plant sites and distribution centers. Certain of these leases include options to extend the lease and some include options to terminate the lease early. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term.

There are no leases that have not yet commenced that create significant rights and obligations for the Company.

The components of lease cost are shown below:

(Dollars in thousands)	2021		2020		Income Statement Location
Lease Cost
Operating lease cost (1)	$	4,248	$	4,716	Selling, general and administrative expenses
Operating lease cost (2)	6,404		7,406		Cost of sales
Finance lease cost
Amortization of right-of-use assets	461		298		Cost of sales
Interest of lease liabilities	45		33		Interest expense
Net lease cost	$	11,158	$	12,453

(1)Included in operating lease cost is $0.7 million and $0.9 million of short-term lease costs for the years ended December 31, 2021 and 2020, respectively, and $0.4 million and $0.4 million of variable lease costs for the years ended December 31, 2021 and 2020, respectively.

(2)Included in operating lease cost is $2.8 million and $2.7 million of short-term lease costs for the years ended December 31, 2021 and 2020, respectively, and approximately zero variable lease costs for December 31, 2021 and $0.7 million of variable lease costs for 2020.

Supplemental balance sheet information related to leases are shown below:

(Dollars in thousands)	2021		2020		Balance Sheet Location
Assets
Operating leased assets	$	13,186	$	15,446	Operating leased assets
Finance leased assets(1)	1,184		1,410		Property, plant and equipment, net
Total leased assets	$	14,370	$	16,856
Liabilities
Current
Operating	$	4,325	$	5,431	Accrued expenses and other current liabilities
Finance	687		640		Loans payable and current portion of long-term debt
Noncurrent
Operating	8,849		10,064		Operating lease non-current liabilities
Finance	1,810		2,271		Long-term debt, less current portion
Total lease liabilities	$	15,671	$	18,406

(1)Finance leases are net of accumulated depreciation of $3.5 million and $3.1 million for December 31, 2021 and 2020, respectively.

Supplemental cash flow information related to leases are shown below:

(Dollars in thousands)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	45	$	33
Operating cash flows from operating leases	7,014		7,959
Financing cash flows from finance leases	461		331
Leased assets obtained in exchange for new finance lease liabilities	301		961
Leased assets obtained in exchange for new operating lease liabilities	6,412		4,686

	2021
Weighted-average remaining lease term (years)
Operating leases	4.5
Finance leases	4.4
Weighted-average discount rate
Operating leases	4.2	%
Finance leases	4.5	%

Maturities of lease liabilities are shown below as of December 31, 2021:

(Dollars in thousands)	Finance Leases		Operating Leases
2022	$	778	$	5,129
2023	699		3,325
2024	570		2,337
2025	465		1,823
2026	331		1,422
Thereafter	139		1,804
Net minimum lease payments	2,982		15,840
Less: interest	(485)		(2,667)
Present value of lease liabilities	$	2,497	$	13,173