Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

v3.20.2
Leases (Tables)
6 Months Ended
Jun. 30, 2020
Leases [Abstract]  
Supplemental Balance Sheets Information
The following table summarizes the lease amounts included in our condensed consolidated balance sheets:
(in thousands)
Classification on the Condensed Consolidated Balance Sheets
 
June 30, 2020
 
December 31, 2019
Assets
 
 
 
 
 
Operating
Operating lease right-of-use assets (a)
 
$
19,616

 
$
21,056

Finance
Property and equipment, net (b)
 
6,088

 
6,412

Total lease assets
 
 
$
25,704

 
$
27,468

 
 
 
 
 
 
Liabilities
 
 
 
 
 
Current
 
 
 
 
 
   Operating
Current operating lease liabilities
 
$
3,681

 
$
3,750

   Finance
Current portion of long-term debt
 
2,414

 
2,424

Noncurrent
 
 
 
 
 
   Operating
Long-term lease liabilities
 
16,502

 
18,247

   Finance
Long-term debt
 
3,871

 
4,161

Total lease liabilities
 
 
$
26,468

 
$
28,582

(a) Operating lease assets are recorded net of accumulated amortization of $9.9 million at June 30, 2020 and $8.5 million at December 31, 2019.
(b) Finance lease assets are recorded net of accumulated amortization of $4.9 million at June 30, 2020 and $4.7 million at December 31, 2019.
Summary of Lease Costs, Lease Terms and Discount Rates
The following is a summary of the lease terms and discount rates:
 
 
June 30, 2020
 
December 31, 2019
Weighted average lease term (in years)
 
 
 
 
   Operating
 
5.93

 
6.20

   Finance
 
2.83

 
2.96

 
 
 
 
 
Weighted average discount rate
 
 
 
 
   Operating
 
4.81
%
 
4.80
%
   Finance
 
5.64
%
 
5.69
%
The following table summarizes the lease costs included in our condensed consolidated statements of operations for the three months ended:
 
 
 
For the Three months ended June 30,
 
For the Six months ended June 30,
(in thousands)
Classification on the Condensed Consolidated Statement of Operations
 
2020
 
2019
 
2020
 
2019
Operating lease cost
Cost of revenue(a)
 
$
893

 
$
853

 
$
1,777

 
1,667

Operating lease cost
Selling, general and administrative expenses(a)
 
376

 
346

 
757

 
671

Finance lease cost
 
 
 
 
 
 
 
 
 
   Amortization
Cost of revenue(b)
 
645

 
613

 
1,311

 
1,183

   Interest
Interest expense, net(b)
 
86

 
79

 
179

 
154

Total lease cost
 
 
$
2,000

 
$
1,891

 
$
4,024

 
$
3,675

(a) Operating lease costs recorded in cost of sales includes $0.1 million and $0.2 million of variable lease costs for the three months ended June 30, 2020 and 2019, respectively. In addition, $0.1 million of variable lease costs are included in Selling, general and administrative expenses for both the three months ended June 30, 2020 and 2019. Operating lease costs recorded in cost of sales includes $0.4 million of variable lease costs for the six months ended June 30, 2020 and 2019. In addition, $0.1 million of variable lease costs are included in Selling, general and administrative expenses for the six months ended June 30, 2020 and 2019.
(b) Finance lease costs recorded in cost of revenue for the three months ended June 30, 2020 and 2019 includes $0.5 million and $0.7 million of variable leases costs. Finance lease costs recorded in cost of revenue for the six months ended June 30, 2020 and 2019 includes $1.2 million and $1.4 million of variable lease costs. These variable lease costs consist of fuel, maintenance, and sales tax charges. No variable lease costs for finance leases were recorded in selling, general and administrative expenses.
Future Minimum Commitment for Finance Leases
Future minimum commitments for finance and operating leases that have non-cancelable lease terms in excess of one year as of June 30, 2020 were as follows:
Year ending (in thousands):
Finance
Leases
 
Operating
Leases
Remainder of 2020
$
1,429

 
$
2,294

2021
2,426

 
4,565

2022
1,898

 
4,305

2023
902

 
3,303

2024
162

 
2,701

Thereafter
1

 
6,169

Total minimum lease payments
$
6,818

 
$
23,337

Amounts representing interest
(533
)
 
 
Present value of net minimum lease payments
$
6,285

 
 
Future Minimum Commitment for Operating Leases
Future minimum commitments for finance and operating leases that have non-cancelable lease terms in excess of one year as of June 30, 2020 were as follows:
Year ending (in thousands):
Finance
Leases
 
Operating
Leases
Remainder of 2020
$
1,429

 
$
2,294

2021
2,426

 
4,565

2022
1,898

 
4,305

2023
902

 
3,303

2024
162

 
2,701

Thereafter
1

 
6,169

Total minimum lease payments
$
6,818

 
$
23,337

Amounts representing interest
(533
)
 
 
Present value of net minimum lease payments
$
6,285

 
 
Leases Supplemental Cash Flow Information
The following is a summary of other information and supplemental cash flow information related to finance and operating leases for the six months ended:
(in thousands)
 
June 30, 2020
 
June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
 
 
   Operating cash flows from operating leases
 
$
2,910

 
$
2,273

   Operating cash flows from finance leases
 
179

 
154

   Financing cash flows from finance leases
 
1,285

 
1,140

Right-of-use assets exchanged for lease liabilities:
 
 
 
 
   Operating leases
 
$

 
$
3,022

   Finance leases
 
1,050

 
1,630

Right-of-use assets disposed or adjusted modifying operating leases liabilities
 
$
586

 
$
1,651

Right-of-use assets disposed or adjusted modifying finance leases liabilities
 
$
(64
)
 
$