Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

LEASES

We enter into a variety of arrangements in which we are the lessee for the use of automobiles, forklifts and other production equipment, production facilities, warehouses, office space and land. We determine if an arrangement contains a lease at inception. All our lease arrangements are operating leases and are recorded in the condensed consolidated balance sheet under the caption “Other assets” and the lease obligation is under “Other current liabilities” and “Other long-term liabilities.” We do not have any finance leases.

Operating lease right of use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. We use our incremental borrowing rate based on information available at the commencement date in determining the lease liabilities as our leases generally do not provide an implicit rate. For purposes of recording the lease arrangement, the term of lease may include options to extend or terminate when we are reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term.

The following table sets forth information related to our leases as of the periods indicated.

Dollars in thousands	September 30, 2021			December 31, 2020
Right of use asset	$	22,513		$	11,789
Weighted average discount rate	3.38		%	2.94		%
Weighted average remaining maturity (years)	29.5			5.5

The following table sets forth operating lease expense for the periods indicated:

	September 30,
In thousands	2021		2020
Three months ended	$	1,490	$	1,400
Nine months ended	4,289		4,285

The following table sets forth required remaining future minimum lease payments during the years indicated:

In thousands
2021	$	1,142
2022	4,306
2023	2,875
2024	2,286
2025	1,968
Thereafter	40,461

In connection with the May 2021 Mount Holly acquisition, we assumed a long-term lease of the land on which the facility is situated. The lease obligation, including renewal options that are expected to be exercised, expires in July 2077, and a corresponding right of use asset totaled of $7.7 million at the time the acquisition was completed.