Leases (Tables)

9 Months Ended

Sep. 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 September 30, 2020 and September 30, 2019 are as follows (Dollars in thousands):

Lease Type	Classification	Three Months Ended September 30, 2020		Three Months Ended September 30, 2019
Consolidated Operating Lease Expense (1)	Operating expenses	$	1,262	$	1,190
Consolidated Financing Lease Amortization	Operating expenses	63		$	60
Consolidated Financing Lease Interest	Interest expense	8		10
Consolidated Financing Lease Expense		71		70
Sublease Income (2)	Operating expenses	—		—
Net Lease Cost		$	1,333	$	1,260

(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 September 30, 2020 and December 31, 2019 are as follows (Dollars in thousands):

Lease Type	September 30, 2020		December 31, 2019
Total Right Of Use ("ROU") operating lease assets (1)	$	8,938	$	10,592
Total ROU financing lease assets (2)	575		654
Total lease assets	$	9,513	$	11,246
Total current operating lease obligation	$	4,276	$	3,591
Total current financing lease obligation	233		239
Total current lease obligations	$	4,509	$	3,830
Total long term operating lease obligation	$	6,414	$	9,133
Total long term financing lease obligation	279		371
Total long term lease obligation	$	6,693	$	9,504

(1) Operating lease assets are recorded net of accumulated amortization of $5.1 million and $2.4 million as of September 30, 2020 and December 31, 2019, respectively

(2) Financing lease assets are recorded net of accumulated amortization of $0.4 million and $0.2 million as of September 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 September 30, 2020 were as follows (Dollars in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total
Year one	$	4,599	$	254	$	4,853
Year two	3,780		153		3,933
Year three	1,733		101		1,834
Year four	720		35		755
Year five	175		2		177
Subsequent years	471		—		471
Total lease payments	11,478		545		12,023
Less: Interest	788		33		821
Present value of lease liabilities	$	10,690	$	512	$	11,202

(1)    Minimum lease payments exclude payments to landlord for real estate taxes and common area maintenance $0.7 million

Lease Disclosures

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

Lease Type	Weighted Average Term in Years	Weighted Average Interest Rate
Operating Leases	3.1	5.08%
Financing Leases	2.7	5.37%

Schedule of Cash Flow, Supplemental Disclosures

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

Cash Flow Source	Classification	Amount
Operating cash flows from operating leases	Operating activities	$	3,072
Operating cash flows from financing leases	Operating activities	22
Financing cash flows from financing leases	Financing activities	192