Leases

9 Months Ended

Sep. 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 September 30, 2021 and September 30, 2020 are as follows (Dollars in thousands):

		Three Months Ended September 30,
Lease Type	Classification	2021		2020
Operating Lease Expense	Operating expenses	$	1,500	$	1,262
Financing Lease Amortization	Operating expenses	44		$	63
Financing Lease Interest	Interest expense	2		8
Financing Lease Expense		46		71
Net Lease Cost		$	1,546	$	1,333

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

		Nine Months Ended September 30,
Lease Type	Classification	2021		2020
Operating Lease Expense	Operating expenses	$	4,429	$	3,630
Financing Lease Amortization	Operating expenses	179		$	165
Financing Lease Interest	Interest expense	12		22
Financing Lease Expense		191		187
Net Lease Cost		$	4,620	$	3,817

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

Lease Type	September 30, 2021		December 31, 2020
Total Right Of Use ("ROU") operating lease assets (1)	$	12,292	$	8,246
Total ROU financing lease assets (2)	410		518
Total lease assets	$	12,702	$	8,764
Total current operating lease obligation	$	4,187	$	4,360
Total current financing lease obligation	161		208
Total current lease obligations	$	4,348	$	4,568
Total long term operating lease obligation	$	9,587	$	5,498
Total long term financing lease obligation	157		240
Total long term lease obligation	$	9,744	$	5,738

(1) Operating lease assets are recorded net of accumulated amortization of $8.7 million and $5.9 million as of September 30, 2021 and December 31, 2020, respectively

(2) Financing lease assets are recorded net of accumulated amortization of $0.6 million and $0.4 million as of September 30, 2021 and December 31, 2020, respectively

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

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total
Year one	$	4,535	$	166	$	4,701
Year two	3,841		114		3,955
Year three	2,865		39		2,904
Year four	1,870		14		1,884
Year five	345		—		345
Subsequent years	1,265		—		1,265
Total lease payments	14,721		333		15,054
Less: Interest	947		15		962
Present value of lease liabilities	$	13,774	$	318	$	14,092

(1)    Minimum lease payments exclude payments to landlord for real estate taxes and common area maintenance $0.6 million

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

Lease Type	Weighted Average Term in Years	Weighted Average Interest Rate
Operating Leases	4.0	3.53%
Financing Leases	2.2	4.99%

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

Cash Flow Source	Classification	Amount
Operating cash flows from operating leases	Operating activities	$	3,549
Operating cash flows from financing leases	Operating activities	12
Financing cash flows from financing leases	Financing activities	179

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 September 30, 2021 and September 30, 2020 are as follows (Dollars in thousands):

		Three Months Ended September 30,
Lease Type	Classification	2021		2020
Operating Lease Expense	Operating expenses	$	1,500	$	1,262
Financing Lease Amortization	Operating expenses	44		$	63
Financing Lease Interest	Interest expense	2		8
Financing Lease Expense		46		71
Net Lease Cost		$	1,546	$	1,333

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

		Nine Months Ended September 30,
Lease Type	Classification	2021		2020
Operating Lease Expense	Operating expenses	$	4,429	$	3,630
Financing Lease Amortization	Operating expenses	179		$	165
Financing Lease Interest	Interest expense	12		22
Financing Lease Expense		191		187
Net Lease Cost		$	4,620	$	3,817

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

Lease Type	September 30, 2021		December 31, 2020
Total Right Of Use ("ROU") operating lease assets (1)	$	12,292	$	8,246
Total ROU financing lease assets (2)	410		518
Total lease assets	$	12,702	$	8,764
Total current operating lease obligation	$	4,187	$	4,360
Total current financing lease obligation	161		208
Total current lease obligations	$	4,348	$	4,568
Total long term operating lease obligation	$	9,587	$	5,498
Total long term financing lease obligation	157		240
Total long term lease obligation	$	9,744	$	5,738

(1) Operating lease assets are recorded net of accumulated amortization of $8.7 million and $5.9 million as of September 30, 2021 and December 31, 2020, respectively

(2) Financing lease assets are recorded net of accumulated amortization of $0.6 million and $0.4 million as of September 30, 2021 and December 31, 2020, respectively

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

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total
Year one	$	4,535	$	166	$	4,701
Year two	3,841		114		3,955
Year three	2,865		39		2,904
Year four	1,870		14		1,884
Year five	345		—		345
Subsequent years	1,265		—		1,265
Total lease payments	14,721		333		15,054
Less: Interest	947		15		962
Present value of lease liabilities	$	13,774	$	318	$	14,092

(1)    Minimum lease payments exclude payments to landlord for real estate taxes and common area maintenance $0.6 million

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

Lease Type	Weighted Average Term in Years	Weighted Average Interest Rate
Operating Leases	4.0	3.53%
Financing Leases	2.2	4.99%

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

Cash Flow Source	Classification	Amount
Operating cash flows from operating leases	Operating activities	$	3,549
Operating cash flows from financing leases	Operating activities	12
Financing cash flows from financing leases	Financing activities	179

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 September 30, 2021 and September 30, 2020 are as follows (Dollars in thousands):

		Three Months Ended September 30,
Lease Type	Classification	2021		2020
Operating Lease Expense	Operating expenses	$	1,500	$	1,262
Financing Lease Amortization	Operating expenses	44		$	63
Financing Lease Interest	Interest expense	2		8
Financing Lease Expense		46		71
Net Lease Cost		$	1,546	$	1,333

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

		Nine Months Ended September 30,
Lease Type	Classification	2021		2020
Operating Lease Expense	Operating expenses	$	4,429	$	3,630
Financing Lease Amortization	Operating expenses	179		$	165
Financing Lease Interest	Interest expense	12		22
Financing Lease Expense		191		187
Net Lease Cost		$	4,620	$	3,817

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

Lease Type	September 30, 2021		December 31, 2020
Total Right Of Use ("ROU") operating lease assets (1)	$	12,292	$	8,246
Total ROU financing lease assets (2)	410		518
Total lease assets	$	12,702	$	8,764
Total current operating lease obligation	$	4,187	$	4,360
Total current financing lease obligation	161		208
Total current lease obligations	$	4,348	$	4,568
Total long term operating lease obligation	$	9,587	$	5,498
Total long term financing lease obligation	157		240
Total long term lease obligation	$	9,744	$	5,738

(1) Operating lease assets are recorded net of accumulated amortization of $8.7 million and $5.9 million as of September 30, 2021 and December 31, 2020, respectively

(2) Financing lease assets are recorded net of accumulated amortization of $0.6 million and $0.4 million as of September 30, 2021 and December 31, 2020, respectively

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

Maturity Date of Lease Liabilities	Operating Leases		Financing Leases		Total
Year one	$	4,535	$	166	$	4,701
Year two	3,841		114		3,955
Year three	2,865		39		2,904
Year four	1,870		14		1,884
Year five	345		—		345
Subsequent years	1,265		—		1,265
Total lease payments	14,721		333		15,054
Less: Interest	947		15		962
Present value of lease liabilities	$	13,774	$	318	$	14,092

(1)    Minimum lease payments exclude payments to landlord for real estate taxes and common area maintenance $0.6 million

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

Lease Type	Weighted Average Term in Years	Weighted Average Interest Rate
Operating Leases	4.0	3.53%
Financing Leases	2.2	4.99%

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

Cash Flow Source	Classification	Amount
Operating cash flows from operating leases	Operating activities	$	3,549
Operating cash flows from financing leases	Operating activities	12
Financing cash flows from financing leases	Financing activities	179

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.