Ecovyst, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Leases

Leases

12 Months Ended

Dec. 31, 2019

13. Leases:

Operating lease costs of $19,148 are included in cost of goods sold and in selling, general and administrative expenses on the consolidated statement of income for the year ended December 31, 2019. Finance lease, short-term lease and variable lease costs for the years ended December 31, 2019 were not material. Lease income is not material to the results of operations for the years ended December 31, 2019.

The Company entered into a sale-leaseback transaction during the year ended December 31, 2019. Disclosures related to this transaction can be found within Note 8 to these consolidated financial statements.

The table below presents the operating and finance right-of-use lease assets and lease liabilities recognized on the consolidated balance sheet as of December 31, 2019:



	Classification	December 31, 2019
Assets
Operating lease assets	Right-of-use lease assets	$	57,295
Finance lease assets	Property, plant and equipment, net	1,556
Total leased assets		$	58,851

Liabilities
Current:
Operating lease liabilities	Operating lease liabilities—current	$	15,183
Finance lease liabilities	Accrued liabilities	185

Noncurrent:
Operating lease liabilities	Operating lease liabilities—noncurrent	40,156
Finance lease liabilities	Other long-term liabilities	315
Total lease liabilities		$	55,839

The Company’s weighted average remaining lease term and weighted average discount rate for operating and financing leases as of December 31, 2019 are as follows:



	December 31, 2019
Weighted average remaining lease term (in years):
Operating leases	5.54
Finance leases	2.65

Weighted average discount rate:
Operating leases	5.51	%
Finance leases	4.67	%

Maturities of lease liabilities as of December 31, 2019 are as follows:



Year	Operating Leases		Finance Leases
2020	17,447		202
2021	15,978		202
2022	9,747		124
2023	7,168		3
2024	4,670		—
Thereafter	10,453		—
Total lease payments	65,463		531
Less: Interest	(10,124	)	(31	)
Total lease liabilities	55,339		500


⁽¹⁾	Refer to the above table regarding the Company’s right-of-use lease assets and lease liabilities for the presentation of the lease liabilities in the Company’s consolidated balance sheet at December 31, 2019.

The following table presents other information related to the Company’s operating and finance leases and the impact on the Company’s consolidated statement of cash flows:



	Year ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Payments on operating leases included in operating cash flows	$	18,945
Interest payments under finance lease obligations included in operating cash flows	27
Principal payments under finance lease obligations included in financing cash flows	179

Right-of-use assets obtained in exchange for new lease liabilities (non-cash):
Operating leases	11,453
Finance leases	—

Lessee, Operating Leases

13. Leases:

The table below presents the operating and finance right-of-use lease assets and lease liabilities recognized on the consolidated balance sheet as of December 31, 2019:



	Classification	December 31, 2019
Assets
Operating lease assets	Right-of-use lease assets	$	57,295
Finance lease assets	Property, plant and equipment, net	1,556
Total leased assets		$	58,851

Liabilities
Current:
Operating lease liabilities	Operating lease liabilities—current	$	15,183
Finance lease liabilities	Accrued liabilities	185

Noncurrent:
Operating lease liabilities	Operating lease liabilities—noncurrent	40,156
Finance lease liabilities	Other long-term liabilities	315
Total lease liabilities		$	55,839

The Company’s weighted average remaining lease term and weighted average discount rate for operating and financing leases as of December 31, 2019 are as follows:



	December 31, 2019
Weighted average remaining lease term (in years):
Operating leases	5.54
Finance leases	2.65

Weighted average discount rate:
Operating leases	5.51	%
Finance leases	4.67	%

Maturities of lease liabilities as of December 31, 2019 are as follows:



Year	Operating Leases		Finance Leases
2020	17,447		202
2021	15,978		202
2022	9,747		124
2023	7,168		3
2024	4,670		—
Thereafter	10,453		—
Total lease payments	65,463		531
Less: Interest	(10,124	)	(31	)
Total lease liabilities	55,339		500


⁽¹⁾	Refer to the above table regarding the Company’s right-of-use lease assets and lease liabilities for the presentation of the lease liabilities in the Company’s consolidated balance sheet at December 31, 2019.

The following table presents other information related to the Company’s operating and finance leases and the impact on the Company’s consolidated statement of cash flows:



	Year ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Payments on operating leases included in operating cash flows	$	18,945
Interest payments under finance lease obligations included in operating cash flows	27
Principal payments under finance lease obligations included in financing cash flows	179

Right-of-use assets obtained in exchange for new lease liabilities (non-cash):
Operating leases	11,453
Finance leases	—