Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.23.2
Leases
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Leases LEASES
The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
June 30, 2023 December 31, 2022
Operating Leases:
Operating lease assets $ 38,833  $ 38,224 
Current portions of operating lease liabilities $ 5,935  $ 5,829 
Long-term portions of operating lease liabilities 32,487  31,703 
Total operating lease liabilities $ 38,422  $ 37,532 
Weighted-average remaining lease term 13 years 13 years
Weighted-average discount rate 6.1  % 6.0  %
Financing Leases:
Energy assets $ 28,314  $ 29,365 
Current portions of financing lease liabilities $ 1,631  $ 1,992 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 13,504  14,068 
Total financing lease liabilities $ 15,135  $ 16,060 
Weighted-average remaining lease term 14 years 14 years
Weighted-average discount rate 12.1  % 12.1  %
The costs related to our leases were as follows:
Three Months Ended June 30, Six Months Ended June 30,
2023 2022 2023 2022
Operating Leases:
Operating lease costs $ 2,316  $ 2,063  $ 4,436  $ 4,354 
Financing Leases:
Amortization expense 525  532  1,051  887 
Interest on lease liabilities 433  536  877  1,095 
Total lease costs $ 3,274  $ 3,131  $ 6,364  $ 6,336 
Supplemental cash flow information related to our leases was as follows:
Six Months Ended June 30,
2023 2022
Cash paid for amounts included in the measurement of operating lease liabilities $ 3,792  $ 3,814 
Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities $ 3,486  $ 1,712 
The table below sets forth our estimated minimum future lease obligations under our leases:
  Operating Leases Financing Leases
Year ended December 31,  
2023 $ 4,344  $ 1,832 
2024 7,475  2,565 
2025 6,187  2,213 
2026 3,990  2,054 
2027 3,072  1,922 
Thereafter 31,317  17,891 
Total minimum lease payments 56,385  28,477 
Less: interest 17,963  13,342 
Present value of lease liabilities $ 38,422  $ 15,135 
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 June 30, 2023 and relates to lease payments to be made over a 20-year period. We are in process of modifying the terms of this agreement such that the criteria to record a ROU asset and ROU liability may not be met.
August 2018 Master Sale-leaseback
We enter into amendments to our August 2018 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants.
We sold and leased back four energy assets for $80,384 in cash proceeds under this facility during the six months ended June 30, 2023. As of June 30, 2023, a majority of the total commitment of $350,000 remained available under this lending commitment.
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 $114 for the three and six months ended June 30, 2023 and 2022.
December 2020 Master Sale-leaseback
We enter into amendments to our December 2020 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants.
We sold and leased back three energy assets for $9,201 in cash proceeds under this facility during the six months ended June 30, 2023.
Leases LEASES
The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
June 30, 2023 December 31, 2022
Operating Leases:
Operating lease assets $ 38,833  $ 38,224 
Current portions of operating lease liabilities $ 5,935  $ 5,829 
Long-term portions of operating lease liabilities 32,487  31,703 
Total operating lease liabilities $ 38,422  $ 37,532 
Weighted-average remaining lease term 13 years 13 years
Weighted-average discount rate 6.1  % 6.0  %
Financing Leases:
Energy assets $ 28,314  $ 29,365 
Current portions of financing lease liabilities $ 1,631  $ 1,992 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 13,504  14,068 
Total financing lease liabilities $ 15,135  $ 16,060 
Weighted-average remaining lease term 14 years 14 years
Weighted-average discount rate 12.1  % 12.1  %
The costs related to our leases were as follows:
Three Months Ended June 30, Six Months Ended June 30,
2023 2022 2023 2022
Operating Leases:
Operating lease costs $ 2,316  $ 2,063  $ 4,436  $ 4,354 
Financing Leases:
Amortization expense 525  532  1,051  887 
Interest on lease liabilities 433  536  877  1,095 
Total lease costs $ 3,274  $ 3,131  $ 6,364  $ 6,336 
Supplemental cash flow information related to our leases was as follows:
Six Months Ended June 30,
2023 2022
Cash paid for amounts included in the measurement of operating lease liabilities $ 3,792  $ 3,814 
Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities $ 3,486  $ 1,712 
The table below sets forth our estimated minimum future lease obligations under our leases:
  Operating Leases Financing Leases
Year ended December 31,  
2023 $ 4,344  $ 1,832 
2024 7,475  2,565 
2025 6,187  2,213 
2026 3,990  2,054 
2027 3,072  1,922 
Thereafter 31,317  17,891 
Total minimum lease payments 56,385  28,477 
Less: interest 17,963  13,342 
Present value of lease liabilities $ 38,422  $ 15,135 
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 June 30, 2023 and relates to lease payments to be made over a 20-year period. We are in process of modifying the terms of this agreement such that the criteria to record a ROU asset and ROU liability may not be met.
August 2018 Master Sale-leaseback
We enter into amendments to our August 2018 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants.
We sold and leased back four energy assets for $80,384 in cash proceeds under this facility during the six months ended June 30, 2023. As of June 30, 2023, a majority of the total commitment of $350,000 remained available under this lending commitment.
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 $114 for the three and six months ended June 30, 2023 and 2022.
December 2020 Master Sale-leaseback
We enter into amendments to our December 2020 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants.
We sold and leased back three energy assets for $9,201 in cash proceeds under this facility during the six months ended June 30, 2023.
Leases LEASES
The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
June 30, 2023 December 31, 2022
Operating Leases:
Operating lease assets $ 38,833  $ 38,224 
Current portions of operating lease liabilities $ 5,935  $ 5,829 
Long-term portions of operating lease liabilities 32,487  31,703 
Total operating lease liabilities $ 38,422  $ 37,532 
Weighted-average remaining lease term 13 years 13 years
Weighted-average discount rate 6.1  % 6.0  %
Financing Leases:
Energy assets $ 28,314  $ 29,365 
Current portions of financing lease liabilities $ 1,631  $ 1,992 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 13,504  14,068 
Total financing lease liabilities $ 15,135  $ 16,060 
Weighted-average remaining lease term 14 years 14 years
Weighted-average discount rate 12.1  % 12.1  %
The costs related to our leases were as follows:
Three Months Ended June 30, Six Months Ended June 30,
2023 2022 2023 2022
Operating Leases:
Operating lease costs $ 2,316  $ 2,063  $ 4,436  $ 4,354 
Financing Leases:
Amortization expense 525  532  1,051  887 
Interest on lease liabilities 433  536  877  1,095 
Total lease costs $ 3,274  $ 3,131  $ 6,364  $ 6,336 
Supplemental cash flow information related to our leases was as follows:
Six Months Ended June 30,
2023 2022
Cash paid for amounts included in the measurement of operating lease liabilities $ 3,792  $ 3,814 
Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities $ 3,486  $ 1,712 
The table below sets forth our estimated minimum future lease obligations under our leases:
  Operating Leases Financing Leases
Year ended December 31,  
2023 $ 4,344  $ 1,832 
2024 7,475  2,565 
2025 6,187  2,213 
2026 3,990  2,054 
2027 3,072  1,922 
Thereafter 31,317  17,891 
Total minimum lease payments 56,385  28,477 
Less: interest 17,963  13,342 
Present value of lease liabilities $ 38,422  $ 15,135 
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 June 30, 2023 and relates to lease payments to be made over a 20-year period. We are in process of modifying the terms of this agreement such that the criteria to record a ROU asset and ROU liability may not be met.
August 2018 Master Sale-leaseback
We enter into amendments to our August 2018 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants.
We sold and leased back four energy assets for $80,384 in cash proceeds under this facility during the six months ended June 30, 2023. As of June 30, 2023, a majority of the total commitment of $350,000 remained available under this lending commitment.
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 $114 for the three and six months ended June 30, 2023 and 2022.
December 2020 Master Sale-leaseback
We enter into amendments to our December 2020 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants.
We sold and leased back three energy assets for $9,201 in cash proceeds under this facility during the six months ended June 30, 2023.