Leases (Tables)

3 Months Ended

Mar. 31, 2020

The expenses and income generated by the leasing activity of Lawson as lessee for the three months ending March 31, 2020 and 2019 are as follows (Dollars in thousands):



		Three Months Ended March 31,
Lease Type	Classification	2020		2019

Consolidated Operating Lease Expense ⁽¹⁾	Operating expenses	$	1,187	$	1,195

Consolidated Financing Lease Amortization	Operating expenses	52		48
Consolidated Financing Lease Interest	Interest expense	7		6
Consolidated Financing Lease Expense		59		54

Sublease Income ⁽²⁾	Operating expenses	—		(80		)
Net Lease Cost		$	1,246	$	1,169

⁽¹⁾ Includes short term lease expense, which is immaterial

⁽²⁾ Sublease income from sublease of a portion of the Company headquarters. The sublease was terminated in June 2019 and the Company has no other subleases.

Value of Net Assets and Liabilities of Leasing Activities

The value of the net assets and liabilities generated by the leasing activity of Lawson as lessee as of March 31, 2020 and December 31, 2019 are as follows (Dollars in thousands):



	March 31,		December 31,
Lease Type	2020		2019

Total ROU operating lease assets ⁽¹⁾	$	9,573	$	10,592
Total ROU financing lease assets ⁽²⁾	605		654
Total lease assets	$	10,178	$	11,246

Total current operating lease obligation	$	3,580	$	3,591
Total current financing lease obligation	245		239
Total current lease obligations	$	3,825	$	3,830

Total long term operating lease obligation	$	8,021	$	9,133
Total long term financing lease obligation	310		371
Total long term lease obligation	$	8,331	$	9,504

⁽¹⁾ Operating lease assets are recorded net of accumulated amortization of $3.9 million and $2.8 million as of March 31, 2020 and December 31, 2019, respectively

⁽²⁾ Financing lease assets are recorded net of accumulated amortization of $0.3 million and $0.2 million as of March 31, 2020

Value of Lease Liabilities Generated by Leasing Activities

The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of March 31, 2020 were as follows (Dollars in thousands):



Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total

Year one	$	4,069	$	268	$	4,337
Year two	4,081		174		4,255
Year three	2,612		110		2,722
Year four	1,055		43		1,098
Year five	240		—		240
Subsequent years	517		—		517
Total lease payments	12,574		595		13,169
Less: Interest	973		40		1,013
Present value of lease liabilities	$	11,601	$	555	$	12,156

Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block]

Lease Disclosures

he weighted average lease terms and interest rates of the leases held by Lawson as of March 31, 2020 are as follows:



Lease Type	Weighted Average Term in Years	Weighted Average Interest Rate

Operating Leases	3.5	5.1%
Financing Leases	2.7	5.4%

Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]

The cash outflows of the leasing activity of Lawson as lessee for the three months ending March 31, 2020 are as follows (Dollars in thousands):



Cash Flow Source	Classification	Amount

Operating cash flows from operating leases	Operating activities	$	992
Operating cash flows from financing leases	Operating activities	7
Financing cash flows from financing leases	Financing activities	67

Operating Lease Income