Effective the Company accounts for its leases under ASC .  Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases, and are recorded on the consolidated balance sheet. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities short-term, and operating lease liabilities long-term in the Company's consolidated balance sheets. Finance leases are included in property, plant and equipment, current maturities of long-term debt, and long-term debt less current maturities in the Company's consolidated balance sheets. 

 

ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or the Company’s incremental borrowing rate.  Lease liabilities are increased by interest and reduced by payments each period, and the ROU asset is amortized over the lease term.  For operating leases, interest on the lease liability and the amortization of the ROU asset result in straight-line rent expense over the lease term.  For finance leases, interest on the lease liability and the amortization of the ROU asset results in front-loaded expense over the lease term.  Variable lease expenses are recorded when incurred. ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term.

 

As most of the Company's leases do provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment.

 

In calculating the ROU asset and lease liability, the Company elects to combine lease and non-lease components.  The Company excludes short-term leases having initial terms of months or less from the new guidance as an accounting policy election, and recognizes rent expense on a straight-line basis over the lease term. 

 

The Company continues to account for leases in the prior period financial statements under ASC Topic

 

In the Company obtained finance leases for CAD million (approximately USD million at the prevailing exchange rates on the transaction dates) to finance vehicle equipment. The interest rates for these finance leases range from to per annum with monthly principal and interest payments of less than million. These leases mature between to

 

In  the Company obtained finance leases for CAD million (approximately USD million at the prevailing exchange rates on the transaction dates) to finance vehicle equipment. The interest rates for these finance leases were per annum with monthly principal and interest payments of less than million. These leases mature in

 

In the Company obtained a finance lease for million Indian Rupees (approximately USD  thousand at the prevailing exchange rate on the transaction date) to finance vehicle equipment. The interest rate for this finance lease was per annum with monthly principal and interest payments of less than USD  thousand. This lease expired in  

 

The Company has several significant operating lease agreements, with lease terms of to years, which consist of real estate, vehicles and office equipment leases. These leases do require any contingent rental payments, impose any financial restrictions or contain any residual value guarantees.  Certain of the Company’s leases include renewal options and escalation clauses; renewal options have been included in the calculation of the lease liabilities and ROU assets as the Company is reasonably certain to exercise the options.  Variable expenses generally represent the Company’s share of the landlord’s operating expenses.  The Company does have any arrangements where it acts as a lessor, other than sub-lease arrangement. 

 

AtCompany also had finance lease liabilities of million included in current maturities of long-term debt and long-term debt less current maturities, and finance ROU assets of million which were included in property plant and equipment, net of accumulated depreciation in the consolidated balance sheet.

 

Supplemental balance sheet information related to leases follows:

 

Total lease costs consist of the following:

 

Supplemental cash flow information related to leases is as follows:

 

 

 

 

On future minimum annual rental commitments under non-cancelable lease obligations were as follows:

 

 

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