Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.22.2.2
Leases
 9 Months Ended
Sep. 30, 2022
Leases [Abstract]  
Leases LEASES
The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
September 30, 2022 December 31, 2021
Operating Leases:
Operating lease assets $ 37,952  $ 41,982 
Current portions of operating lease liabilities $ 6,129  $ 6,276 
Long-term portions of operating lease liabilities 31,142  35,135 
Total operating lease liabilities $ 37,271  $ 41,411 
Weighted-average remaining lease term 12 years 12 years
Weighted-average discount rate 5.6  % 5.7  %
Financing Leases:
Energy assets $ 29,891  $ 31,876 
Current portions of financing lease liabilities $ 2,517  $ 3,125 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 15,089  16,101 
Total financing lease liabilities $ 17,606  $ 19,226 
Weighted-average remaining lease term 14 years 15 years
Weighted-average discount rate 12.1  % 12.1  %
The costs related to our leases were as follows:
Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
Operating Leases:
Operating lease costs $ 1,890  $ 2,165  $ 6,244  $ 6,505 
Financing Leases:
Amortization expense 691  532  1,578  1,597 
Interest on lease liabilities 525  608  1,620  1,932 
Total lease costs $ 3,106  $ 3,305  $ 9,442  $ 10,034 
Supplemental cash flow information related to our leases was as follows:
Nine Months Ended September 30,
2022 2021
Cash paid for amounts included in the measurement of operating lease liabilities $ 5,948  $ 6,347 
Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities $ 2,960  $ 6,544 
The table below sets forth our estimated minimum future lease obligations under our leases:
  Operating Leases Financing Leases
Year ended December 31,  
2022 $ 2,039  $ 2,443 
2023 7,721  3,676 
2024 6,494  2,565 
2025 5,144  2,213 
2026 2,986  2,054 
Thereafter 28,524  19,812 
Total minimum lease payments 52,908  32,763 
Less: interest 15,637  15,157 
Present value of lease liabilities $ 37,271  $ 17,606 
We have a future lease commitment for a ground lease which does not yet meet the criteria for recording a ROU asset or ROU liability. The net present value of this commitment totals $10,500 as of September 30, 2022 and relates to lease payments to be made over a 20-year period. We anticipate the criteria to be met by the end of this fiscal year, at which time we will record a ROU asset and ROU liability.
Sale-leasebacks
In March 2022, we entered into an amendment to our August 2018 long-term financing facility which extended the end date of the agreement from March 31, 2022 to June 30, 2022. In June 2022 and September 2022, we entered into additional amendments to this facility which further extended the end date of the agreement from June 30, 2022 to September 30, 2022 and from September 30, 2022 to June 30, 2023, respectively. We sold and leased back three energy assets for $9,751 in cash proceeds under this agreement during the nine months ended September 30, 2022. As of September 30, 2022, approximately $218,817 remained available under this lending commitment.
In March 2022 and September 2022, we entered into amendments to our December 2020 long-term financing facility which extended the end date of the agreement from December 31, 2021 to July 15, 2022 and from July 15, 2022 to December 31, 2022, respectively We sold and leased back four energy assets for $6,048 in cash proceeds under this facility during the nine months ended September 30, 2022. As of September 30, 2022, approximately $9,890 remained available under this lending commitment.
These transactions are accounted for as failed sale leasebacks 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 for each of the three months ended September 30, 2022 and 2021, and $171 for each of the nine months ended September 30, 2022 and 2021.
Leases LEASES
The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
September 30, 2022 December 31, 2021
Operating Leases:
Operating lease assets $ 37,952  $ 41,982 
Current portions of operating lease liabilities $ 6,129  $ 6,276 
Long-term portions of operating lease liabilities 31,142  35,135 
Total operating lease liabilities $ 37,271  $ 41,411 
Weighted-average remaining lease term 12 years 12 years
Weighted-average discount rate 5.6  % 5.7  %
Financing Leases:
Energy assets $ 29,891  $ 31,876 
Current portions of financing lease liabilities $ 2,517  $ 3,125 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 15,089  16,101 
Total financing lease liabilities $ 17,606  $ 19,226 
Weighted-average remaining lease term 14 years 15 years
Weighted-average discount rate 12.1  % 12.1  %
The costs related to our leases were as follows:
Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
Operating Leases:
Operating lease costs $ 1,890  $ 2,165  $ 6,244  $ 6,505 
Financing Leases:
Amortization expense 691  532  1,578  1,597 
Interest on lease liabilities 525  608  1,620  1,932 
Total lease costs $ 3,106  $ 3,305  $ 9,442  $ 10,034 
Supplemental cash flow information related to our leases was as follows:
Nine Months Ended September 30,
2022 2021
Cash paid for amounts included in the measurement of operating lease liabilities $ 5,948  $ 6,347 
Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities $ 2,960  $ 6,544 
The table below sets forth our estimated minimum future lease obligations under our leases:
  Operating Leases Financing Leases
Year ended December 31,  
2022 $ 2,039  $ 2,443 
2023 7,721  3,676 
2024 6,494  2,565 
2025 5,144  2,213 
2026 2,986  2,054 
Thereafter 28,524  19,812 
Total minimum lease payments 52,908  32,763 
Less: interest 15,637  15,157 
Present value of lease liabilities $ 37,271  $ 17,606 
We have a future lease commitment for a ground lease which does not yet meet the criteria for recording a ROU asset or ROU liability. The net present value of this commitment totals $10,500 as of September 30, 2022 and relates to lease payments to be made over a 20-year period. We anticipate the criteria to be met by the end of this fiscal year, at which time we will record a ROU asset and ROU liability.
Sale-leasebacks
In March 2022, we entered into an amendment to our August 2018 long-term financing facility which extended the end date of the agreement from March 31, 2022 to June 30, 2022. In June 2022 and September 2022, we entered into additional amendments to this facility which further extended the end date of the agreement from June 30, 2022 to September 30, 2022 and from September 30, 2022 to June 30, 2023, respectively. We sold and leased back three energy assets for $9,751 in cash proceeds under this agreement during the nine months ended September 30, 2022. As of September 30, 2022, approximately $218,817 remained available under this lending commitment.
In March 2022 and September 2022, we entered into amendments to our December 2020 long-term financing facility which extended the end date of the agreement from December 31, 2021 to July 15, 2022 and from July 15, 2022 to December 31, 2022, respectively We sold and leased back four energy assets for $6,048 in cash proceeds under this facility during the nine months ended September 30, 2022. As of September 30, 2022, approximately $9,890 remained available under this lending commitment.
These transactions are accounted for as failed sale leasebacks 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 for each of the three months ended September 30, 2022 and 2021, and $171 for each of the nine months ended September 30, 2022 and 2021.
Leases LEASES
The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
September 30, 2022 December 31, 2021
Operating Leases:
Operating lease assets $ 37,952  $ 41,982 
Current portions of operating lease liabilities $ 6,129  $ 6,276 
Long-term portions of operating lease liabilities 31,142  35,135 
Total operating lease liabilities $ 37,271  $ 41,411 
Weighted-average remaining lease term 12 years 12 years
Weighted-average discount rate 5.6  % 5.7  %
Financing Leases:
Energy assets $ 29,891  $ 31,876 
Current portions of financing lease liabilities $ 2,517  $ 3,125 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 15,089  16,101 
Total financing lease liabilities $ 17,606  $ 19,226 
Weighted-average remaining lease term 14 years 15 years
Weighted-average discount rate 12.1  % 12.1  %
The costs related to our leases were as follows:
Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
Operating Leases:
Operating lease costs $ 1,890  $ 2,165  $ 6,244  $ 6,505 
Financing Leases:
Amortization expense 691  532  1,578  1,597 
Interest on lease liabilities 525  608  1,620  1,932 
Total lease costs $ 3,106  $ 3,305  $ 9,442  $ 10,034 
Supplemental cash flow information related to our leases was as follows:
Nine Months Ended September 30,
2022 2021
Cash paid for amounts included in the measurement of operating lease liabilities $ 5,948  $ 6,347 
Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities $ 2,960  $ 6,544 
The table below sets forth our estimated minimum future lease obligations under our leases:
  Operating Leases Financing Leases
Year ended December 31,  
2022 $ 2,039  $ 2,443 
2023 7,721  3,676 
2024 6,494  2,565 
2025 5,144  2,213 
2026 2,986  2,054 
Thereafter 28,524  19,812 
Total minimum lease payments 52,908  32,763 
Less: interest 15,637  15,157 
Present value of lease liabilities $ 37,271  $ 17,606 
We have a future lease commitment for a ground lease which does not yet meet the criteria for recording a ROU asset or ROU liability. The net present value of this commitment totals $10,500 as of September 30, 2022 and relates to lease payments to be made over a 20-year period. We anticipate the criteria to be met by the end of this fiscal year, at which time we will record a ROU asset and ROU liability.
Sale-leasebacks
In March 2022, we entered into an amendment to our August 2018 long-term financing facility which extended the end date of the agreement from March 31, 2022 to June 30, 2022. In June 2022 and September 2022, we entered into additional amendments to this facility which further extended the end date of the agreement from June 30, 2022 to September 30, 2022 and from September 30, 2022 to June 30, 2023, respectively. We sold and leased back three energy assets for $9,751 in cash proceeds under this agreement during the nine months ended September 30, 2022. As of September 30, 2022, approximately $218,817 remained available under this lending commitment.
In March 2022 and September 2022, we entered into amendments to our December 2020 long-term financing facility which extended the end date of the agreement from December 31, 2021 to July 15, 2022 and from July 15, 2022 to December 31, 2022, respectively We sold and leased back four energy assets for $6,048 in cash proceeds under this facility during the nine months ended September 30, 2022. As of September 30, 2022, approximately $9,890 remained available under this lending commitment.
These transactions are accounted for as failed sale leasebacks 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 for each of the three months ended September 30, 2022 and 2021, and $171 for each of the nine months ended September 30, 2022 and 2021.