Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

Leases

Lessee

We have operating and finance leases for corporate offices, vehicles, and certain equipment. Our leases have remaining lease terms of 1 year to 10 years, some of which include options to extend the leases and some of which include options to terminate the leases within 1 year. Operating leases are included separately in the consolidated balance sheets and finance lease assets are included in property and equipment with the related liabilities included in other current liabilities and other liabilities in the consolidated balance sheets.

The components of lease expense are as follows (in thousands):

	December 31, 2019
Operating lease cost	$	1,587
Finance lease cost:
Amortization of finance lease assets	$	666
Interest on finance lease liabilities	137
Total finance lease cost	$	803

Supplemental cash flow information related to leases was as follows (in thousands):

	December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,498
Operating cash flows from finance leases	$	137
Financing cash flows from finance leases	$	863
Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	2,493
Finance leases	$	695

Supplemental balance sheet information related to leases was as follows (in thousands):

	December 31, 2019
Operating lease right-of-use assets, net	$	4,827
Operating lease liabilities	$	1,866
Operating lease liabilities, net of current	3,073
Total operating lease liabilities	$	4,939
Finance lease assets	$	4,541
Finance lease accumulated amortization	(1,701		)
Finance lease assets, net	$	2,840
Finance lease liabilities	$	934
Finance lease liabilities, net of current	1,512
Total finance lease liabilities	$	2,446
Weighted-Average Remaining Lease Term (in years)
Operating leases	2.9
Finance leases	2.7
Weighted-Average Discount Rate
Operating leases	5.45		%
Finance leases	6.34		%

Finance leases are recorded in other current and long-term liabilities on the balance sheet as of December 31, 2019.

We are committed to making future cash payments on non-cancelable operating leases and finance leases (including interest). The future minimum lease payments due under both non-cancelable operating leases and finance leases having initial or remaining lease terms in excess of one year as of December 31, 2019 were as follows (in thousands):

	Operating Leases		Finance Leases
2020	$	2,090	$	1,052
2021	1,654		989
2022	931		458
2023	516		140
Thereafter	156		7
Total future minimum lease payments	5,347		2,646
Less amounts representing interest	408		200
Present value of lease obligations	$	4,939	$	2,446

Lessor

In Healthcare division, we generate lease income in Mobile Healthcare segment, from interim rentals of our imaging systems to customers that are in the midst of new construction or refurbishing their current facilities. Rental contracts are structured as either a weekly or monthly payment arrangement and are accounted for as operating leases. Revenues are recognized on a straight-line basis over the term of the rental. As of December 31, 2019, our lease contracts are mainly month to month contracts.

Within our Building and Construction segment, KBS subleased the manufacturing building located in Waterford, Maine to a commercial tenant pursuant to a rental agreement with an initial 5 years term that commenced on September 6, 2019. The rental agreement is structured with a monthly payment arrangement and is accounted for as operating lease. As of December 31, 2019 our undiscounted cash flows for future minimum base rents to be received under operating leases from 2020 to 2024 and thereafter are $0.1 million , $0.1 million , $0.1 million , $0.2 million, and $0.1 million, respectively.

Leases

Leases

Lessee

We have operating and finance leases for corporate offices, vehicles, and certain equipment. Our leases have remaining lease terms of 1 year to 10 years, some of which include options to extend the leases and some of which include options to terminate the leases within 1 year. Operating leases are included separately in the consolidated balance sheets and finance lease assets are included in property and equipment with the related liabilities included in other current liabilities and other liabilities in the consolidated balance sheets.

The components of lease expense are as follows (in thousands):

	December 31, 2019
Operating lease cost	$	1,587
Finance lease cost:
Amortization of finance lease assets	$	666
Interest on finance lease liabilities	137
Total finance lease cost	$	803

Supplemental cash flow information related to leases was as follows (in thousands):

	December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,498
Operating cash flows from finance leases	$	137
Financing cash flows from finance leases	$	863
Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	2,493
Finance leases	$	695

Supplemental balance sheet information related to leases was as follows (in thousands):

	December 31, 2019
Operating lease right-of-use assets, net	$	4,827
Operating lease liabilities	$	1,866
Operating lease liabilities, net of current	3,073
Total operating lease liabilities	$	4,939
Finance lease assets	$	4,541
Finance lease accumulated amortization	(1,701		)
Finance lease assets, net	$	2,840
Finance lease liabilities	$	934
Finance lease liabilities, net of current	1,512
Total finance lease liabilities	$	2,446
Weighted-Average Remaining Lease Term (in years)
Operating leases	2.9
Finance leases	2.7
Weighted-Average Discount Rate
Operating leases	5.45		%
Finance leases	6.34		%

Finance leases are recorded in other current and long-term liabilities on the balance sheet as of December 31, 2019.

We are committed to making future cash payments on non-cancelable operating leases and finance leases (including interest). The future minimum lease payments due under both non-cancelable operating leases and finance leases having initial or remaining lease terms in excess of one year as of December 31, 2019 were as follows (in thousands):

	Operating Leases		Finance Leases
2020	$	2,090	$	1,052
2021	1,654		989
2022	931		458
2023	516		140
Thereafter	156		7
Total future minimum lease payments	5,347		2,646
Less amounts representing interest	408		200
Present value of lease obligations	$	4,939	$	2,446

Lessor

In Healthcare division, we generate lease income in Mobile Healthcare segment, from interim rentals of our imaging systems to customers that are in the midst of new construction or refurbishing their current facilities. Rental contracts are structured as either a weekly or monthly payment arrangement and are accounted for as operating leases. Revenues are recognized on a straight-line basis over the term of the rental. As of December 31, 2019, our lease contracts are mainly month to month contracts.

Within our Building and Construction segment, KBS subleased the manufacturing building located in Waterford, Maine to a commercial tenant pursuant to a rental agreement with an initial 5 years term that commenced on September 6, 2019. The rental agreement is structured with a monthly payment arrangement and is accounted for as operating lease. As of December 31, 2019 our undiscounted cash flows for future minimum base rents to be received under operating leases from 2020 to 2024 and thereafter are $0.1 million , $0.1 million , $0.1 million , $0.2 million, and $0.1 million, respectively.

Leases

Leases

Lessee

We have operating and finance leases for corporate offices, vehicles, and certain equipment. Our leases have remaining lease terms of 1 year to 10 years, some of which include options to extend the leases and some of which include options to terminate the leases within 1 year. Operating leases are included separately in the consolidated balance sheets and finance lease assets are included in property and equipment with the related liabilities included in other current liabilities and other liabilities in the consolidated balance sheets.

The components of lease expense are as follows (in thousands):

	December 31, 2019
Operating lease cost	$	1,587
Finance lease cost:
Amortization of finance lease assets	$	666
Interest on finance lease liabilities	137
Total finance lease cost	$	803

Supplemental cash flow information related to leases was as follows (in thousands):

	December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,498
Operating cash flows from finance leases	$	137
Financing cash flows from finance leases	$	863
Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	2,493
Finance leases	$	695

Supplemental balance sheet information related to leases was as follows (in thousands):

	December 31, 2019
Operating lease right-of-use assets, net	$	4,827
Operating lease liabilities	$	1,866
Operating lease liabilities, net of current	3,073
Total operating lease liabilities	$	4,939
Finance lease assets	$	4,541
Finance lease accumulated amortization	(1,701		)
Finance lease assets, net	$	2,840
Finance lease liabilities	$	934
Finance lease liabilities, net of current	1,512
Total finance lease liabilities	$	2,446
Weighted-Average Remaining Lease Term (in years)
Operating leases	2.9
Finance leases	2.7
Weighted-Average Discount Rate
Operating leases	5.45		%
Finance leases	6.34		%

Finance leases are recorded in other current and long-term liabilities on the balance sheet as of December 31, 2019.

We are committed to making future cash payments on non-cancelable operating leases and finance leases (including interest). The future minimum lease payments due under both non-cancelable operating leases and finance leases having initial or remaining lease terms in excess of one year as of December 31, 2019 were as follows (in thousands):

	Operating Leases		Finance Leases
2020	$	2,090	$	1,052
2021	1,654		989
2022	931		458
2023	516		140
Thereafter	156		7
Total future minimum lease payments	5,347		2,646
Less amounts representing interest	408		200
Present value of lease obligations	$	4,939	$	2,446

Lessor

In Healthcare division, we generate lease income in Mobile Healthcare segment, from interim rentals of our imaging systems to customers that are in the midst of new construction or refurbishing their current facilities. Rental contracts are structured as either a weekly or monthly payment arrangement and are accounted for as operating leases. Revenues are recognized on a straight-line basis over the term of the rental. As of December 31, 2019, our lease contracts are mainly month to month contracts.

Within our Building and Construction segment, KBS subleased the manufacturing building located in Waterford, Maine to a commercial tenant pursuant to a rental agreement with an initial 5 years term that commenced on September 6, 2019. The rental agreement is structured with a monthly payment arrangement and is accounted for as operating lease. As of December 31, 2019 our undiscounted cash flows for future minimum base rents to be received under operating leases from 2020 to 2024 and thereafter are $0.1 million , $0.1 million , $0.1 million , $0.2 million, and $0.1 million, respectively.