Mayville Engineering Company, Inc. Leases Disclosure
Note 6. Operating lease obligations
Operating leases relate to property, plant and equipment. Future minimum lease payments required under the lease are as follows:
|
Year ending December 31, |
|
|
|
|
|
2022 |
|
$ |
5,693 |
|
|
2023 |
|
|
5,699 |
|
|
2024 |
|
|
5,661 |
|
|
2025 |
|
|
4,832 |
|
|
2026 |
|
|
4,655 |
|
|
Thereafter |
|
|
18,801 |
|
|
Total |
|
$ |
45,341 |
|
The Company leases certain office space, warehousing facilities, equipment and vehicles under operating lease arrangements with third-party lessors. These lease arrangements expire at various times through August 2031. Total rent expense under the arrangements was approximately $5,282, $4,471 and $4,801 for the twelve months ended December 31, 2021, 2020, and 2019, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2021 | Mar 2, 2022 | Showing above |
| 2020 | Mar 5, 2021 | |
| 2019 | Mar 2, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.