Leases (Tables)

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Net Lease Cost

The expenses and income generated by the leasing activity of Lawson as lessee for the three months ended June 30, 2020 and June 30, 2019 are as follows (Dollars in thousands):

Lease Type	Classification	Three Months Ended June 30, 2020		Three Months Ended June 30, 2019
Consolidated Operating Lease Expense (1)	Operating expenses	$	1,183	$	1,227
Consolidated Financing Lease Amortization	Operating expenses	50		$	51
Consolidated Financing Lease Interest	Interest expense	7		7
Consolidated Financing Lease Expense		57		58
Sublease Income (2)	Operating expenses	—		(80)
Net Lease Cost		$	1,240	$	1,205

⁽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.

Operating Lease Assets And Liabilities

The value of the net assets and liabilities generated by the leasing activity of Lawson as lessee as of June 30, 2020 and December 31, 2019 are as follows (Dollars in thousands):

Lease Type	June 30, 2020		December 31, 2019
Total ROU operating lease assets (1)	$	8,944	$	10,592
Total ROU financing lease assets (2)	563		654
Total lease assets	$	9,507	$	11,246
Total current operating lease obligation	$	3,678	$	3,591
Total current financing lease obligation	243		239
Total current lease obligations	$	3,921	$	3,830
Total long term operating lease obligation	$	7,166	$	9,133
Total long term financing lease obligation	261		371
Total long term lease obligation	$	7,427	$	9,504

⁽¹⁾ Operating lease assets are recorded net of accumulated amortization of $4.5 million and $2.4 million as of June 30, 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 June 30, 2020 and December 31, 2019, respectively

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 June 30, 2020 were as follows (Dollars in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total
Year one	$	4,126	$	263	$	4,389
Year two	4,056		145		4,201
Year three	1,955		98		2,053
Year four	951		30		981
Year five	151		2		153
Subsequent years	498		—		498
Total lease payments	11,737		538		12,275
Less: Interest	893		34		927
Present value of lease liabilities	$	10,844	$	504	$	11,348

(1) Minimum lease payments exclude payments to landlord for real estate taxes and common area maintenance $0.4 million

Lease Disclosures

The weighted average lease terms and interest rates of the leases held by Lawson as of June 30, 2020 are as follows:

Lease Type	Weighted Average Term in Years	Weighted Average Interest Rate
Operating Leases	3.3	5.10%
Financing Leases	2.6	5.44%

Schedule of Cash Flow, Supplemental Disclosures

The cash outflows of the leasing activity of Lawson as lessee for the six months ending June 30, 2020 are as follows (Dollars in thousands):

Cash Flow Source	Classification	Amount
Operating cash flows from operating leases	Operating activities	$	2,021
Operating cash flows from financing leases	Operating activities	15
Financing cash flows from financing leases	Financing activities	135