Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.21.2
Leases
 9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Leases LEASES
The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
September 30, 2021 December 31, 2020
Operating Leases:
Operating lease assets $ 40,355  $ 39,151 
Current portions of operating lease liabilities $ 6,258  $ 6,106 
Long-term portions of operating lease liabilities 36,373  35,300 
Total operating lease liabilities $ 42,631  $ 41,406 
Weighted-average remaining lease term 12 years 12 years
Weighted-average discount rate 5.74  % 5.94  %
Financing Leases:
Energy assets $ 32,408  $ 34,005 
Current portions of financing lease liabilities $ 3,745  $ 4,273 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 17,607  19,227 
Total financing lease liabilities $ 21,352  $ 23,500 
Weighted-average remaining lease term 15 years 16 years
Weighted-average discount rate 12.02  % 11.94  %
The costs related to our leases were as follows:
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
Operating Leases:
Operating lease costs $ 2,165  $ 2,001  $ 6,505  $ 5,933 
Financing Leases:
Amortization expense 532  533  1,597  1,597 
Interest on lease liabilities 608  723  1,932  2,282 
Total lease costs $ 3,305  $ 3,257  $ 10,034  $ 9,812 
Supplemental cash flow information related to our leases was as follows:
Nine Months Ended September 30,
2021 2020
Cash paid for amounts included in the measurement of operating lease liabilities $ 6,347  $ 5,690 
Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities $ 6,544  $ 8,087 
The table below sets forth our estimated minimum future lease obligations under our leases:
  Operating Leases Financing Leases
Year ended December 31,  
2021 $ 2,037  $ 3,305 
2022 8,326  5,179 
2023 6,952  3,676 
2024 5,804  2,565 
2025 4,703  2,213 
Thereafter 33,254  21,866 
Total minimum lease payments 61,076  38,804 
Less: interest 18,445  17,452 
Present value of lease liabilities $ 42,631  $ 21,352 
We have future lease commitments for a certain ground lease and office space which do not yet meet the criteria for recording a ROU asset or ROU liability. The net present value of these commitments total $3,320 as of September 30, 2021, of which $3,000 relates to a one-time payment due when specific criteria are met, which we estimate will occur during the three months ended December 31, 2021.
Sale-leasebacks
We entered into a fifth amendment dated March 22, 2021 to our August 2018 agreement for a long-term financing facility and increased the maximum funding amount from $150,000 up to $350,000 and extended the end date of the agreement from May 23, 2021 to March 31, 2022. We sold and leased back three energy assets for $31,095 in cash proceeds under this facility during the nine months ended September 30, 2021. As of September 30, 2021, approximately $280,610 remained available under this lending commitment.
In July 2021, we entered into an amendment to our December 2020 long-term financing facility which increased our maximum commitment from $4,500 to $23,559 and extended the end date of the agreement to December 31, 2021. We sold and leased back one energy asset for $3,281 in cash proceeds under this facility during nine months ended September 30, 2021. As of September 30, 2021, approximately $15,936 remained available under this lending commitment.
These transactions are accounted for as failed sales and are classified as long-term financing facilities. See Note 7 for additional information.
Net gains from amortization expense recognized in cost of revenues relating to deferred gains and losses in connection with our sale-leaseback agreements were $57 and $57 for the three months ended September 30, 2021 and 2020, respectively, and $172 and $170 for the nine months ended September 30, 2021 and 2020, respectively.
Leases LEASES
The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
September 30, 2021 December 31, 2020
Operating Leases:
Operating lease assets $ 40,355  $ 39,151 
Current portions of operating lease liabilities $ 6,258  $ 6,106 
Long-term portions of operating lease liabilities 36,373  35,300 
Total operating lease liabilities $ 42,631  $ 41,406 
Weighted-average remaining lease term 12 years 12 years
Weighted-average discount rate 5.74  % 5.94  %
Financing Leases:
Energy assets $ 32,408  $ 34,005 
Current portions of financing lease liabilities $ 3,745  $ 4,273 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 17,607  19,227 
Total financing lease liabilities $ 21,352  $ 23,500 
Weighted-average remaining lease term 15 years 16 years
Weighted-average discount rate 12.02  % 11.94  %
The costs related to our leases were as follows:
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
Operating Leases:
Operating lease costs $ 2,165  $ 2,001  $ 6,505  $ 5,933 
Financing Leases:
Amortization expense 532  533  1,597  1,597 
Interest on lease liabilities 608  723  1,932  2,282 
Total lease costs $ 3,305  $ 3,257  $ 10,034  $ 9,812 
Supplemental cash flow information related to our leases was as follows:
Nine Months Ended September 30,
2021 2020
Cash paid for amounts included in the measurement of operating lease liabilities $ 6,347  $ 5,690 
Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities $ 6,544  $ 8,087 
The table below sets forth our estimated minimum future lease obligations under our leases:
  Operating Leases Financing Leases
Year ended December 31,  
2021 $ 2,037  $ 3,305 
2022 8,326  5,179 
2023 6,952  3,676 
2024 5,804  2,565 
2025 4,703  2,213 
Thereafter 33,254  21,866 
Total minimum lease payments 61,076  38,804 
Less: interest 18,445  17,452 
Present value of lease liabilities $ 42,631  $ 21,352 
We have future lease commitments for a certain ground lease and office space which do not yet meet the criteria for recording a ROU asset or ROU liability. The net present value of these commitments total $3,320 as of September 30, 2021, of which $3,000 relates to a one-time payment due when specific criteria are met, which we estimate will occur during the three months ended December 31, 2021.
Sale-leasebacks
We entered into a fifth amendment dated March 22, 2021 to our August 2018 agreement for a long-term financing facility and increased the maximum funding amount from $150,000 up to $350,000 and extended the end date of the agreement from May 23, 2021 to March 31, 2022. We sold and leased back three energy assets for $31,095 in cash proceeds under this facility during the nine months ended September 30, 2021. As of September 30, 2021, approximately $280,610 remained available under this lending commitment.
In July 2021, we entered into an amendment to our December 2020 long-term financing facility which increased our maximum commitment from $4,500 to $23,559 and extended the end date of the agreement to December 31, 2021. We sold and leased back one energy asset for $3,281 in cash proceeds under this facility during nine months ended September 30, 2021. As of September 30, 2021, approximately $15,936 remained available under this lending commitment.
These transactions are accounted for as failed sales and are classified as long-term financing facilities. See Note 7 for additional information.
Net gains from amortization expense recognized in cost of revenues relating to deferred gains and losses in connection with our sale-leaseback agreements were $57 and $57 for the three months ended September 30, 2021 and 2020, respectively, and $172 and $170 for the nine months ended September 30, 2021 and 2020, respectively.
Leases LEASES
The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
September 30, 2021 December 31, 2020
Operating Leases:
Operating lease assets $ 40,355  $ 39,151 
Current portions of operating lease liabilities $ 6,258  $ 6,106 
Long-term portions of operating lease liabilities 36,373  35,300 
Total operating lease liabilities $ 42,631  $ 41,406 
Weighted-average remaining lease term 12 years 12 years
Weighted-average discount rate 5.74  % 5.94  %
Financing Leases:
Energy assets $ 32,408  $ 34,005 
Current portions of financing lease liabilities $ 3,745  $ 4,273 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 17,607  19,227 
Total financing lease liabilities $ 21,352  $ 23,500 
Weighted-average remaining lease term 15 years 16 years
Weighted-average discount rate 12.02  % 11.94  %
The costs related to our leases were as follows:
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
Operating Leases:
Operating lease costs $ 2,165  $ 2,001  $ 6,505  $ 5,933 
Financing Leases:
Amortization expense 532  533  1,597  1,597 
Interest on lease liabilities 608  723  1,932  2,282 
Total lease costs $ 3,305  $ 3,257  $ 10,034  $ 9,812 
Supplemental cash flow information related to our leases was as follows:
Nine Months Ended September 30,
2021 2020
Cash paid for amounts included in the measurement of operating lease liabilities $ 6,347  $ 5,690 
Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities $ 6,544  $ 8,087 
The table below sets forth our estimated minimum future lease obligations under our leases:
  Operating Leases Financing Leases
Year ended December 31,  
2021 $ 2,037  $ 3,305 
2022 8,326  5,179 
2023 6,952  3,676 
2024 5,804  2,565 
2025 4,703  2,213 
Thereafter 33,254  21,866 
Total minimum lease payments 61,076  38,804 
Less: interest 18,445  17,452 
Present value of lease liabilities $ 42,631  $ 21,352 
We have future lease commitments for a certain ground lease and office space which do not yet meet the criteria for recording a ROU asset or ROU liability. The net present value of these commitments total $3,320 as of September 30, 2021, of which $3,000 relates to a one-time payment due when specific criteria are met, which we estimate will occur during the three months ended December 31, 2021.
Sale-leasebacks
We entered into a fifth amendment dated March 22, 2021 to our August 2018 agreement for a long-term financing facility and increased the maximum funding amount from $150,000 up to $350,000 and extended the end date of the agreement from May 23, 2021 to March 31, 2022. We sold and leased back three energy assets for $31,095 in cash proceeds under this facility during the nine months ended September 30, 2021. As of September 30, 2021, approximately $280,610 remained available under this lending commitment.
In July 2021, we entered into an amendment to our December 2020 long-term financing facility which increased our maximum commitment from $4,500 to $23,559 and extended the end date of the agreement to December 31, 2021. We sold and leased back one energy asset for $3,281 in cash proceeds under this facility during nine months ended September 30, 2021. As of September 30, 2021, approximately $15,936 remained available under this lending commitment.
These transactions are accounted for as failed sales and are classified as long-term financing facilities. See Note 7 for additional information.
Net gains from amortization expense recognized in cost of revenues relating to deferred gains and losses in connection with our sale-leaseback agreements were $57 and $57 for the three months ended September 30, 2021 and 2020, respectively, and $172 and $170 for the nine months ended September 30, 2021 and 2020, respectively.