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

Quarterly report pursuant to Section 13 or 15(d)

Leases

Leases

6 Months Ended

Jun. 30, 2020

Balance Sheet Presentation

Operating and finance lease amounts included in the unaudited condensed consolidated balance sheet are as follows (in thousands):



Classification	Financial Statement Line Item	June 30, 2020
Assets	Right-of-use assets, operating leases	$	35,717
Assets	Property, plant and equipment	74
Current liabilities	Current portion of lease liabilities, operating leases	991
Current liabilities	Current portion of lease liabilities, finance leases	31
Non-current liabilities	Non-current portion of lease liabilities, operating leases	36,510
Non-current liabilities	Non-current portion of lease liabilities, finance leases	44

Total Lease Cost

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



(in thousands)	Three Months Ended June 30, 2020		Six Months Ended June 30, 2020
Operating lease cost	$	1,035	$	2,069
Finance lease cost:
Amortization of right-of-use assets	26		75
Interest on finance lease liabilities	7		24
Total lease cost	$	1,068	$	2,168

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 unaudited condensed consolidated statement of operations.

Maturity of Leases

The amounts of undiscounted future minimum lease payments under leases as of June 30, 2020 are as follows:



(in thousands)	Operating		Finance
Remainder of 2020	$	1,829	$	17
2021	3,710		22
2022	3,767		15
2023	3,803		15
2024	3,656		8
Thereafter	48,577		—
Total undiscounted minimum future lease payments	65,342		77
Imputed Interest	27,841		2
Present value of lease liabilities	$	37,501	$	75

Lease Term and Discount Rate



Weighted-average remaining lease term	June 30, 2020
Operating Leases	15.96 years
Finance Leases	2.97 years
Weighted-average discount rate
Operating Leases	7.31	%
Finance Leases	2.65	%

During the three and six months ended June 30, 2020, no right-of-use assets were recognized in exchange for new operating lease liabilities.