v3.25.2
LEASES
 6 Months Ended
Jun. 30, 2025
Leases [Abstract]  
LEASES LEASES
We lease certain buildings and equipment under both operating and finance leases.  Certain lease agreements provide for renewal options, fair value purchase options, and payment of property taxes, maintenance, and insurance by the
Company. Under ASC Topic 842, Leases, we made an accounting policy election, by class of underlying asset, not to separate non-lease components such as those previously stated from lease components and instead will treat the lease agreement as a single lease component for all asset classes. Operating right-of-use (ROU) assets represent our right to use an underlying asset for the lease term and lease liabilities represent Titan's obligations to make lease payments arising from the lease. The majority of our leases are operating leases. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we used our incremental borrowing rate (7.27%), based on the information available at the lease commencement date, in determining the present value of lease payments. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales and selling, general and administrative expenses on the condensed consolidated statements of operations. Amortization expense associated with finance leases is included in cost of sales and selling, general and administrative expenses, and interest expense associated with finance leases is included in interest expense in the condensed consolidated statements of operations.

Supplemental balance sheet information related to leases was as follows (amounts in thousands):
Balance Sheet ClassificationJune 30,
2025		December 31,
2024
Operating lease ROU assetsOperating lease assets$125,125 $117,027 
Operating lease current liabilitiesOperating leases current liabilities11,784 11,999 
Operating lease long-term liabilitiesOperating leases long-term liabilities116,593 106,020 
    Total operating lease liabilities$128,377 $118,019 
Finance lease, grossProperty, plant & equipment, net$8,396 $6,801 
Finance lease accumulated depreciationProperty, plant & equipment, net(4,918)(4,442)
   Finance lease, net$3,478 $2,359 
Finance lease current liabilitiesOther current liabilities$1,492 $986 
Finance lease long-term liabilitiesOther long-term liabilities2,157 1,483 
   Total finance lease liabilities$3,649 $2,469 

At June 30, 2025, maturities of lease liabilities were as follows (amounts in thousands):
Operating
Leases		Finance
Leases
July 1 - December 31, 2025$12,345 $909 
202621,293 1,475 
202718,591 1,032 
202816,666 508 
202915,721 123 
Thereafter121,636 82 
Total lease payments$206,252 $4,129 
Less imputed interest77,875 480 
$128,377 $3,649 
Weighted average remaining lease term (in years)12.572.93
Weighted average discount rate 7.27 %7.27 %
Supplemental cash flow information related to leases for the six months ended June 30, 2025 were as follows: operating cash flows from operating leases were $5.2 million.
Supplemental cash flow information related to leases for the six months ended June 30, 2024 were as follows: operating cash flows from operating leases were $4.5 million.
LEASES LEASES
We lease certain buildings and equipment under both operating and finance leases.  Certain lease agreements provide for renewal options, fair value purchase options, and payment of property taxes, maintenance, and insurance by the
Company. Under ASC Topic 842, Leases, we made an accounting policy election, by class of underlying asset, not to separate non-lease components such as those previously stated from lease components and instead will treat the lease agreement as a single lease component for all asset classes. Operating right-of-use (ROU) assets represent our right to use an underlying asset for the lease term and lease liabilities represent Titan's obligations to make lease payments arising from the lease. The majority of our leases are operating leases. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we used our incremental borrowing rate (7.27%), based on the information available at the lease commencement date, in determining the present value of lease payments. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales and selling, general and administrative expenses on the condensed consolidated statements of operations. Amortization expense associated with finance leases is included in cost of sales and selling, general and administrative expenses, and interest expense associated with finance leases is included in interest expense in the condensed consolidated statements of operations.

Supplemental balance sheet information related to leases was as follows (amounts in thousands):
Balance Sheet ClassificationJune 30,
2025		December 31,
2024
Operating lease ROU assetsOperating lease assets$125,125 $117,027 
Operating lease current liabilitiesOperating leases current liabilities11,784 11,999 
Operating lease long-term liabilitiesOperating leases long-term liabilities116,593 106,020 
    Total operating lease liabilities$128,377 $118,019 
Finance lease, grossProperty, plant & equipment, net$8,396 $6,801 
Finance lease accumulated depreciationProperty, plant & equipment, net(4,918)(4,442)
   Finance lease, net$3,478 $2,359 
Finance lease current liabilitiesOther current liabilities$1,492 $986 
Finance lease long-term liabilitiesOther long-term liabilities2,157 1,483 
   Total finance lease liabilities$3,649 $2,469 

At June 30, 2025, maturities of lease liabilities were as follows (amounts in thousands):
Operating
Leases		Finance
Leases
July 1 - December 31, 2025$12,345 $909 
202621,293 1,475 
202718,591 1,032 
202816,666 508 
202915,721 123 
Thereafter121,636 82 
Total lease payments$206,252 $4,129 
Less imputed interest77,875 480 
$128,377 $3,649 
Weighted average remaining lease term (in years)12.572.93
Weighted average discount rate 7.27 %7.27 %
Supplemental cash flow information related to leases for the six months ended June 30, 2025 were as follows: operating cash flows from operating leases were $5.2 million.
Supplemental cash flow information related to leases for the six months ended June 30, 2024 were as follows: operating cash flows from operating leases were $4.5 million.