Leases

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leases

Leases

Activities as Lessee

The Company leases equipment, distribution centers, office space, and branch locations throughout the US and Canada.

Expenses related to leasing activities for the three months ended June 30, 2021 and June 30, 2020 are as follows (Dollars in thousands):

		Three Months Ended June 30,
Lease Type	Classification	2021		2020
Operating Lease Expense	Operating expenses	$	1,434	$	1,183
Financing Lease Amortization	Operating expenses	57		$	50
Financing Lease Interest	Interest expense	5		7
Financing Lease Expense		62		57
Net Lease Cost		$	1,496	$	1,240

Expenses related to leasing activities for the six months ended June 30, 2021 and June 30, 2020 are as follows (Dollars in thousands):

		Six Months Ended June 30,
Lease Type	Classification	2021		2020
Operating Lease Expense	Operating expenses	$	2,929	$	2,369
Financing Lease Amortization	Operating expenses	135		$	102
Financing Lease Interest	Interest expense	10		14
Financing Lease Expense		145		116
Net Lease Cost		$	3,074	$	2,485

Net assets and liabilities related to leasing activities as of June 30, 2021 and December 31, 2020 are as follows (Dollars in thousands):

Lease Type	June 30, 2021		December 31, 2020
Total Right Of Use ("ROU") operating lease assets (1)	$	13,044	$	8,246
Total ROU financing lease assets (2)	439		518
Total lease assets	$	13,483	$	8,764
Total current operating lease obligation	$	4,253	$	4,360
Total current financing lease obligation	164		208
Total current lease obligations	$	4,417	$	4,568
Total long term operating lease obligation	$	10,423	$	5,498
Total long term financing lease obligation	188		240
Total long term lease obligation	$	10,611	$	5,738

(1) Operating lease assets are recorded net of accumulated amortization of $7.6 million and $5.9 million as of June 30, 2021 and December 31, 2020, respectively

(2) Financing lease assets are recorded net of accumulated amortization of $0.5 million and $0.4 million as of June 30, 2021 and December 31, 2020, respectively

Liabilities generated by leasing activities as of June 30, 2021 were as follows (Dollars in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total
Year one	$	4,666	$	177	$	4,843
Year two	4,041		130		4,171
Year three	3,067		55		3,122
Year four	2,299		9		2,308
Year five	300		—		300
Subsequent years	1,350		—		1,350
Total lease payments	15,723		371		16,094
Less: Interest	1,047		19		1,066
Present value of lease liabilities	$	14,676	$	352	$	15,028

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

The weighted average lease terms and interest rates of the leases held by Lawson as of June 30, 2021 are as follows:

Lease Type	Weighted Average Term in Years	Weighted Average Interest Rate
Operating Leases	4.3	3.56%
Financing Leases	2.4	5.01%

The cash outflows of the leasing activity for the three months ending June 30, 2021 are as follows (Dollars in thousands):

Cash Flow Source	Classification	Amount
Operating cash flows from operating leases	Operating activities	$	2,304
Operating cash flows from financing leases	Operating activities	10
Financing cash flows from financing leases	Financing activities	135

In March 2021 the Company signed a three year extension for their lease at the McCook distribution center. ("McCook"). The lease extension created a right of use asset of $5.3 million and a lease liability of $5.3 million.

Refer to Note 3 - Revenue Recognition for a discussion on Lawson activities as lessor.

Leases

Leases

Activities as Lessee

The Company leases equipment, distribution centers, office space, and branch locations throughout the US and Canada.

Expenses related to leasing activities for the three months ended June 30, 2021 and June 30, 2020 are as follows (Dollars in thousands):

		Three Months Ended June 30,
Lease Type	Classification	2021		2020
Operating Lease Expense	Operating expenses	$	1,434	$	1,183
Financing Lease Amortization	Operating expenses	57		$	50
Financing Lease Interest	Interest expense	5		7
Financing Lease Expense		62		57
Net Lease Cost		$	1,496	$	1,240

Expenses related to leasing activities for the six months ended June 30, 2021 and June 30, 2020 are as follows (Dollars in thousands):

		Six Months Ended June 30,
Lease Type	Classification	2021		2020
Operating Lease Expense	Operating expenses	$	2,929	$	2,369
Financing Lease Amortization	Operating expenses	135		$	102
Financing Lease Interest	Interest expense	10		14
Financing Lease Expense		145		116
Net Lease Cost		$	3,074	$	2,485

Net assets and liabilities related to leasing activities as of June 30, 2021 and December 31, 2020 are as follows (Dollars in thousands):

Lease Type	June 30, 2021		December 31, 2020
Total Right Of Use ("ROU") operating lease assets (1)	$	13,044	$	8,246
Total ROU financing lease assets (2)	439		518
Total lease assets	$	13,483	$	8,764
Total current operating lease obligation	$	4,253	$	4,360
Total current financing lease obligation	164		208
Total current lease obligations	$	4,417	$	4,568
Total long term operating lease obligation	$	10,423	$	5,498
Total long term financing lease obligation	188		240
Total long term lease obligation	$	10,611	$	5,738

(1) Operating lease assets are recorded net of accumulated amortization of $7.6 million and $5.9 million as of June 30, 2021 and December 31, 2020, respectively

(2) Financing lease assets are recorded net of accumulated amortization of $0.5 million and $0.4 million as of June 30, 2021 and December 31, 2020, respectively

Liabilities generated by leasing activities as of June 30, 2021 were as follows (Dollars in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total
Year one	$	4,666	$	177	$	4,843
Year two	4,041		130		4,171
Year three	3,067		55		3,122
Year four	2,299		9		2,308
Year five	300		—		300
Subsequent years	1,350		—		1,350
Total lease payments	15,723		371		16,094
Less: Interest	1,047		19		1,066
Present value of lease liabilities	$	14,676	$	352	$	15,028

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

The weighted average lease terms and interest rates of the leases held by Lawson as of June 30, 2021 are as follows:

Lease Type	Weighted Average Term in Years	Weighted Average Interest Rate
Operating Leases	4.3	3.56%
Financing Leases	2.4	5.01%

The cash outflows of the leasing activity for the three months ending June 30, 2021 are as follows (Dollars in thousands):

Cash Flow Source	Classification	Amount
Operating cash flows from operating leases	Operating activities	$	2,304
Operating cash flows from financing leases	Operating activities	10
Financing cash flows from financing leases	Financing activities	135

In March 2021 the Company signed a three year extension for their lease at the McCook distribution center. ("McCook"). The lease extension created a right of use asset of $5.3 million and a lease liability of $5.3 million.

Refer to Note 3 - Revenue Recognition for a discussion on Lawson activities as lessor.

Leases

Leases

Activities as Lessee

The Company leases equipment, distribution centers, office space, and branch locations throughout the US and Canada.

Expenses related to leasing activities for the three months ended June 30, 2021 and June 30, 2020 are as follows (Dollars in thousands):

		Three Months Ended June 30,
Lease Type	Classification	2021		2020
Operating Lease Expense	Operating expenses	$	1,434	$	1,183
Financing Lease Amortization	Operating expenses	57		$	50
Financing Lease Interest	Interest expense	5		7
Financing Lease Expense		62		57
Net Lease Cost		$	1,496	$	1,240

Expenses related to leasing activities for the six months ended June 30, 2021 and June 30, 2020 are as follows (Dollars in thousands):

		Six Months Ended June 30,
Lease Type	Classification	2021		2020
Operating Lease Expense	Operating expenses	$	2,929	$	2,369
Financing Lease Amortization	Operating expenses	135		$	102
Financing Lease Interest	Interest expense	10		14
Financing Lease Expense		145		116
Net Lease Cost		$	3,074	$	2,485

Net assets and liabilities related to leasing activities as of June 30, 2021 and December 31, 2020 are as follows (Dollars in thousands):

Lease Type	June 30, 2021		December 31, 2020
Total Right Of Use ("ROU") operating lease assets (1)	$	13,044	$	8,246
Total ROU financing lease assets (2)	439		518
Total lease assets	$	13,483	$	8,764
Total current operating lease obligation	$	4,253	$	4,360
Total current financing lease obligation	164		208
Total current lease obligations	$	4,417	$	4,568
Total long term operating lease obligation	$	10,423	$	5,498
Total long term financing lease obligation	188		240
Total long term lease obligation	$	10,611	$	5,738

(1) Operating lease assets are recorded net of accumulated amortization of $7.6 million and $5.9 million as of June 30, 2021 and December 31, 2020, respectively

(2) Financing lease assets are recorded net of accumulated amortization of $0.5 million and $0.4 million as of June 30, 2021 and December 31, 2020, respectively

Liabilities generated by leasing activities as of June 30, 2021 were as follows (Dollars in thousands):

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total
Year one	$	4,666	$	177	$	4,843
Year two	4,041		130		4,171
Year three	3,067		55		3,122
Year four	2,299		9		2,308
Year five	300		—		300
Subsequent years	1,350		—		1,350
Total lease payments	15,723		371		16,094
Less: Interest	1,047		19		1,066
Present value of lease liabilities	$	14,676	$	352	$	15,028

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

The weighted average lease terms and interest rates of the leases held by Lawson as of June 30, 2021 are as follows:

Lease Type	Weighted Average Term in Years	Weighted Average Interest Rate
Operating Leases	4.3	3.56%
Financing Leases	2.4	5.01%

The cash outflows of the leasing activity for the three months ending June 30, 2021 are as follows (Dollars in thousands):

Cash Flow Source	Classification	Amount
Operating cash flows from operating leases	Operating activities	$	2,304
Operating cash flows from financing leases	Operating activities	10
Financing cash flows from financing leases	Financing activities	135

In March 2021 the Company signed a three year extension for their lease at the McCook distribution center. ("McCook"). The lease extension created a right of use asset of $5.3 million and a lease liability of $5.3 million.

Refer to Note 3 - Revenue Recognition for a discussion on Lawson activities as lessor.