Ascent Industries Co. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Leases

Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

Balance Sheet Presentation

Operating and finance lease amounts included in the Condensed Consolidated Balance Sheet are as follows (in thousands):



Classification	Financial Statement Line Item	March 31, 2020
Assets	Right-of-use assets, operating leases	$	36,072
Assets	Property, plant and equipment	296
Current liabilities	Current portion of lease liabilities, operating leases	957
Current liabilities	Current portion of lease liabilities, finance leases	275
Non-current liabilities	Non-current portion of lease liabilities, operating leases	36,770
Non-current liabilities	Non-current portion of lease liabilities, finance leases	200

Total Lease Cost

Individual components of the total lease cost incurred by the Company are as follows:



(in thousands)	Three Months Ended March 31, 2020
Operating lease cost	$	1,035
Finance lease cost:
Amortization of right-of-use assets	59
Interest on finance lease liabilities	17
Total lease cost	$	1,111

Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the Condensed Consolidated Statement of Operations.

Maturity of Leases

The amounts of undiscounted future minimum lease payments under leases as of March 31, 2020 are as follows:



(in thousands)	Operating		Finance
Remainder of 2020	$	2,735	$	237
2021	3,710		291
2022	3,767		—
2023	3,803		—
2024	3,656		—
Thereafter	48,577		—
Total undiscounted minimum future lease payments	66,248		528
Imputed Interest	28,521		53
Present value of lease liabilities	$	37,727	$	475

Lease Term and Discount Rate



Weighted-average remaining lease term	March 31, 2020
Operating Leases	16.19 years
Finance Leases	1.67 years
Weighted-average discount rate
Operating Leases	7.32	%
Finance Leases	12.40	%

During the three-month period ended March 31, 2020, no right-of-use assets were recognized in exchange for new operating lease liabilities.

Leases

Balance Sheet Presentation

Operating and finance lease amounts included in the Condensed Consolidated Balance Sheet are as follows (in thousands):



Classification	Financial Statement Line Item	March 31, 2020
Assets	Right-of-use assets, operating leases	$	36,072
Assets	Property, plant and equipment	296
Current liabilities	Current portion of lease liabilities, operating leases	957
Current liabilities	Current portion of lease liabilities, finance leases	275
Non-current liabilities	Non-current portion of lease liabilities, operating leases	36,770
Non-current liabilities	Non-current portion of lease liabilities, finance leases	200

Total Lease Cost

Individual components of the total lease cost incurred by the Company are as follows:



(in thousands)	Three Months Ended March 31, 2020
Operating lease cost	$	1,035
Finance lease cost:
Amortization of right-of-use assets	59
Interest on finance lease liabilities	17
Total lease cost	$	1,111

Maturity of Leases

The amounts of undiscounted future minimum lease payments under leases as of March 31, 2020 are as follows:



(in thousands)	Operating		Finance
Remainder of 2020	$	2,735	$	237
2021	3,710		291
2022	3,767		—
2023	3,803		—
2024	3,656		—
Thereafter	48,577		—
Total undiscounted minimum future lease payments	66,248		528
Imputed Interest	28,521		53
Present value of lease liabilities	$	37,727	$	475

Lease Term and Discount Rate



Weighted-average remaining lease term	March 31, 2020
Operating Leases	16.19 years
Finance Leases	1.67 years
Weighted-average discount rate
Operating Leases	7.32	%
Finance Leases	12.40	%

During the three-month period ended March 31, 2020, no right-of-use assets were recognized in exchange for new operating lease liabilities.