Quarterly report pursuant to Section 13 or 15(d)

Leases

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Leases
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
LEASES LEASES
The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
June 30, 2024 December 31, 2023
Operating Leases:
Operating lease assets $ 68,194  $ 58,586 
Current portions of operating lease liabilities $ 13,618  $ 13,569 
Long-term portions of operating lease liabilities 48,545  42,258 
Total operating lease liabilities $ 62,163  $ 55,827 
Weighted-average remaining lease term 19 years 18 years
Weighted-average discount rate 6.6  % 6.6  %
Financing Leases:
Energy assets $ 26,210  $ 27,262 
Current portions of financing lease liabilities $ 683  $ 871 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 12,749  13,057 
Total financing lease liabilities $ 13,432  $ 13,928 
Weighted-average remaining lease term 12 years 13 years
Weighted-average discount rate 12.02  % 12.05  %
The costs related to our leases were as follows:
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
Operating Leases:
Operating lease costs $ 3,176  $ 2,316  $ 6,232  $ 4,436 
Financing Leases:
Amortization expense 526  525  1,052  1,051 
Interest on lease liabilities 389  433  781  877 
Total lease costs $ 4,091  $ 3,274  $ 8,065  $ 6,364 
Supplemental cash flow information related to our leases was as follows:
Six Months Ended June 30,
2024 2023
Cash paid for amounts included in the measurement of operating lease liabilities $ 9,682  $ 3,792 
Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities (1)
$ 13,573  $ 3,486 
(1) Includes non-monetary lease transactions of $10,378. See disclosure below for additional information.
The table below sets forth our estimated minimum future lease obligations under our leases:
  Operating Leases Financing Leases
Year ended December 31,  
2024 $ 8,541  $ 1,149 
2025 12,674  2,214 
2026 7,303  2,054 
2027 6,177  1,922 
2028 5,155  1,955 
Thereafter 61,393  15,934 
Total minimum lease payments 101,243  25,228 
Less: interest 39,080  11,796 
Present value of lease liabilities $ 62,163  $ 13,432 
We have future lease commitments for office and ground leases which do not yet meet the criteria for recording a ROU asset or ROU liability. The net present value of these commitments total $18,859 as of June 30, 2024 and relate to lease payments to be made over 5 to 25 years. This includes a ground lease totaling $10,500 that we are in process of modifying such that the criteria to record a ROU asset and ROU liability may not be met.
Non-monetary Lease Transactions
We have six lease liabilities consisting of obligations that will be settled with non-monetary consideration. The lease liabilities relating to non-monetary consideration were recorded during the six months ended June 30, 2024 based on the fair market value of the project services or back up power expected to be provided, which approximate the cash payments.
Sale-leasebacks
These facilities are accounted for as failed sale leasebacks and are classified as long-term financing facilities.
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 two energy assets for $22,116 in cash proceeds under this facility during the six months ended June 30, 2024. As of June 30, 2024, we have available funds remaining 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, 2024 and 2023, respectively.
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 were in default under this agreement as we had failed to satisfy the insurance requirements and historical coverage ratio under this agreement. On May 3, 2024, we received a waiver on this default.
LEASES LEASES
The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
June 30, 2024 December 31, 2023
Operating Leases:
Operating lease assets $ 68,194  $ 58,586 
Current portions of operating lease liabilities $ 13,618  $ 13,569 
Long-term portions of operating lease liabilities 48,545  42,258 
Total operating lease liabilities $ 62,163  $ 55,827 
Weighted-average remaining lease term 19 years 18 years
Weighted-average discount rate 6.6  % 6.6  %
Financing Leases:
Energy assets $ 26,210  $ 27,262 
Current portions of financing lease liabilities $ 683  $ 871 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 12,749  13,057 
Total financing lease liabilities $ 13,432  $ 13,928 
Weighted-average remaining lease term 12 years 13 years
Weighted-average discount rate 12.02  % 12.05  %
The costs related to our leases were as follows:
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
Operating Leases:
Operating lease costs $ 3,176  $ 2,316  $ 6,232  $ 4,436 
Financing Leases:
Amortization expense 526  525  1,052  1,051 
Interest on lease liabilities 389  433  781  877 
Total lease costs $ 4,091  $ 3,274  $ 8,065  $ 6,364 
Supplemental cash flow information related to our leases was as follows:
Six Months Ended June 30,
2024 2023
Cash paid for amounts included in the measurement of operating lease liabilities $ 9,682  $ 3,792 
Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities (1)
$ 13,573  $ 3,486 
(1) Includes non-monetary lease transactions of $10,378. See disclosure below for additional information.
The table below sets forth our estimated minimum future lease obligations under our leases:
  Operating Leases Financing Leases
Year ended December 31,  
2024 $ 8,541  $ 1,149 
2025 12,674  2,214 
2026 7,303  2,054 
2027 6,177  1,922 
2028 5,155  1,955 
Thereafter 61,393  15,934 
Total minimum lease payments 101,243  25,228 
Less: interest 39,080  11,796 
Present value of lease liabilities $ 62,163  $ 13,432 
We have future lease commitments for office and ground leases which do not yet meet the criteria for recording a ROU asset or ROU liability. The net present value of these commitments total $18,859 as of June 30, 2024 and relate to lease payments to be made over 5 to 25 years. This includes a ground lease totaling $10,500 that we are in process of modifying such that the criteria to record a ROU asset and ROU liability may not be met.
Non-monetary Lease Transactions
We have six lease liabilities consisting of obligations that will be settled with non-monetary consideration. The lease liabilities relating to non-monetary consideration were recorded during the six months ended June 30, 2024 based on the fair market value of the project services or back up power expected to be provided, which approximate the cash payments.
Sale-leasebacks
These facilities are accounted for as failed sale leasebacks and are classified as long-term financing facilities.
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 two energy assets for $22,116 in cash proceeds under this facility during the six months ended June 30, 2024. As of June 30, 2024, we have available funds remaining 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, 2024 and 2023, respectively.
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 were in default under this agreement as we had failed to satisfy the insurance requirements and historical coverage ratio under this agreement. On May 3, 2024, we received a waiver on this default.
LEASES LEASES
The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
June 30, 2024 December 31, 2023
Operating Leases:
Operating lease assets $ 68,194  $ 58,586 
Current portions of operating lease liabilities $ 13,618  $ 13,569 
Long-term portions of operating lease liabilities 48,545  42,258 
Total operating lease liabilities $ 62,163  $ 55,827 
Weighted-average remaining lease term 19 years 18 years
Weighted-average discount rate 6.6  % 6.6  %
Financing Leases:
Energy assets $ 26,210  $ 27,262 
Current portions of financing lease liabilities $ 683  $ 871 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 12,749  13,057 
Total financing lease liabilities $ 13,432  $ 13,928 
Weighted-average remaining lease term 12 years 13 years
Weighted-average discount rate 12.02  % 12.05  %
The costs related to our leases were as follows:
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
Operating Leases:
Operating lease costs $ 3,176  $ 2,316  $ 6,232  $ 4,436 
Financing Leases:
Amortization expense 526  525  1,052  1,051 
Interest on lease liabilities 389  433  781  877 
Total lease costs $ 4,091  $ 3,274  $ 8,065  $ 6,364 
Supplemental cash flow information related to our leases was as follows:
Six Months Ended June 30,
2024 2023
Cash paid for amounts included in the measurement of operating lease liabilities $ 9,682  $ 3,792 
Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities (1)
$ 13,573  $ 3,486 
(1) Includes non-monetary lease transactions of $10,378. See disclosure below for additional information.
The table below sets forth our estimated minimum future lease obligations under our leases:
  Operating Leases Financing Leases
Year ended December 31,  
2024 $ 8,541  $ 1,149 
2025 12,674  2,214 
2026 7,303  2,054 
2027 6,177  1,922 
2028 5,155  1,955 
Thereafter 61,393  15,934 
Total minimum lease payments 101,243  25,228 
Less: interest 39,080  11,796 
Present value of lease liabilities $ 62,163  $ 13,432 
We have future lease commitments for office and ground leases which do not yet meet the criteria for recording a ROU asset or ROU liability. The net present value of these commitments total $18,859 as of June 30, 2024 and relate to lease payments to be made over 5 to 25 years. This includes a ground lease totaling $10,500 that we are in process of modifying such that the criteria to record a ROU asset and ROU liability may not be met.
Non-monetary Lease Transactions
We have six lease liabilities consisting of obligations that will be settled with non-monetary consideration. The lease liabilities relating to non-monetary consideration were recorded during the six months ended June 30, 2024 based on the fair market value of the project services or back up power expected to be provided, which approximate the cash payments.
Sale-leasebacks
These facilities are accounted for as failed sale leasebacks and are classified as long-term financing facilities.
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 two energy assets for $22,116 in cash proceeds under this facility during the six months ended June 30, 2024. As of June 30, 2024, we have available funds remaining 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, 2024 and 2023, respectively.
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 were in default under this agreement as we had failed to satisfy the insurance requirements and historical coverage ratio under this agreement. On May 3, 2024, we received a waiver on this default.