Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.21.2
Leases
 6 Months Ended
Jun. 30, 2021
Leases [Abstract]  
Leases LEASES
The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
June 30, 2021 December 31, 2020
Operating Leases:
Operating lease assets $ 40,608  $ 39,151 
Current portions of operating lease liabilities $ 5,995  $ 6,106 
Long-term portions of operating lease liabilities 36,731  35,300 
Total operating lease liabilities $ 42,726  $ 41,406 
Weighted-average remaining lease term 13 years 12 years
Weighted-average discount rate 5.79  % 5.94  %
Financing Leases:
Energy assets $ 32,940  $ 34,005 
Current portions of financing lease liabilities $ 3,796  $ 4,273 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 17,617  19,227 
Total financing lease liabilities $ 21,413  $ 23,500 
Weighted-average remaining lease term 16 years 16 years
Weighted-average discount rate 12.04  % 11.94  %
The costs related to our leases were as follows:
Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Operating Leases:
Operating lease costs $ 2,187  $ 2,106  $ 4,340  $ 3,932 
Financing Leases:
Amortization expense 533  532  1,065  1,064 
Interest on lease liabilities 666  726  1,324  1,559 
Total lease costs $ 3,386  $ 3,364  $ 6,729  $ 6,555 
Supplemental cash flow information related to our leases was as follows:
Six Months Ended June 30,
2021 2020
Cash paid for amounts included in the measurement of operating lease liabilities $ 4,355  $ 3,861 
Right-of-use assets obtained in exchange for new operating lease liabilities $ 4,961  $ 4,838 
The table below sets forth our estimated minimum future lease obligations under our leases:
  Operating Leases Financing Leases
Year ended December 31,  
2021 $ 4,116  $ 3,485 
2022 8,098  5,178 
2023 6,659  3,676 
2024 5,516  2,565 
2025 4,488  2,213 
Thereafter 32,721  21,866 
Total minimum lease payments 61,598  38,983 
Less: interest 18,872  17,570 
Present value of lease liabilities $ 42,726  $ 21,413 
We have a future lease commitment for a certain 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 $3,000 as of June 30, 2021 and relates to a one-time payment due when specific criteria are met, which we estimate will be during the three months ended September 30, 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 two energy assets for $26,820 in cash under this facility during the six months ended June 30, 2021. As of June 30, 2021, approximately $284,885 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.
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.
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 the three months ended June 30, 2021 and 2020 and $114 and $112 for the six months ended June 30, 2021 and 2020, respectively.
Leases LEASES
The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
June 30, 2021 December 31, 2020
Operating Leases:
Operating lease assets $ 40,608  $ 39,151 
Current portions of operating lease liabilities $ 5,995  $ 6,106 
Long-term portions of operating lease liabilities 36,731  35,300 
Total operating lease liabilities $ 42,726  $ 41,406 
Weighted-average remaining lease term 13 years 12 years
Weighted-average discount rate 5.79  % 5.94  %
Financing Leases:
Energy assets $ 32,940  $ 34,005 
Current portions of financing lease liabilities $ 3,796  $ 4,273 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 17,617  19,227 
Total financing lease liabilities $ 21,413  $ 23,500 
Weighted-average remaining lease term 16 years 16 years
Weighted-average discount rate 12.04  % 11.94  %
The costs related to our leases were as follows:
Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Operating Leases:
Operating lease costs $ 2,187  $ 2,106  $ 4,340  $ 3,932 
Financing Leases:
Amortization expense 533  532  1,065  1,064 
Interest on lease liabilities 666  726  1,324  1,559 
Total lease costs $ 3,386  $ 3,364  $ 6,729  $ 6,555 
Supplemental cash flow information related to our leases was as follows:
Six Months Ended June 30,
2021 2020
Cash paid for amounts included in the measurement of operating lease liabilities $ 4,355  $ 3,861 
Right-of-use assets obtained in exchange for new operating lease liabilities $ 4,961  $ 4,838 
The table below sets forth our estimated minimum future lease obligations under our leases:
  Operating Leases Financing Leases
Year ended December 31,  
2021 $ 4,116  $ 3,485 
2022 8,098  5,178 
2023 6,659  3,676 
2024 5,516  2,565 
2025 4,488  2,213 
Thereafter 32,721  21,866 
Total minimum lease payments 61,598  38,983 
Less: interest 18,872  17,570 
Present value of lease liabilities $ 42,726  $ 21,413 
We have a future lease commitment for a certain 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 $3,000 as of June 30, 2021 and relates to a one-time payment due when specific criteria are met, which we estimate will be during the three months ended September 30, 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 two energy assets for $26,820 in cash under this facility during the six months ended June 30, 2021. As of June 30, 2021, approximately $284,885 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.
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.
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 the three months ended June 30, 2021 and 2020 and $114 and $112 for the six months ended June 30, 2021 and 2020, respectively.
Leases LEASES
The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
June 30, 2021 December 31, 2020
Operating Leases:
Operating lease assets $ 40,608  $ 39,151 
Current portions of operating lease liabilities $ 5,995  $ 6,106 
Long-term portions of operating lease liabilities 36,731  35,300 
Total operating lease liabilities $ 42,726  $ 41,406 
Weighted-average remaining lease term 13 years 12 years
Weighted-average discount rate 5.79  % 5.94  %
Financing Leases:
Energy assets $ 32,940  $ 34,005 
Current portions of financing lease liabilities $ 3,796  $ 4,273 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 17,617  19,227 
Total financing lease liabilities $ 21,413  $ 23,500 
Weighted-average remaining lease term 16 years 16 years
Weighted-average discount rate 12.04  % 11.94  %
The costs related to our leases were as follows:
Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Operating Leases:
Operating lease costs $ 2,187  $ 2,106  $ 4,340  $ 3,932 
Financing Leases:
Amortization expense 533  532  1,065  1,064 
Interest on lease liabilities 666  726  1,324  1,559 
Total lease costs $ 3,386  $ 3,364  $ 6,729  $ 6,555 
Supplemental cash flow information related to our leases was as follows:
Six Months Ended June 30,
2021 2020
Cash paid for amounts included in the measurement of operating lease liabilities $ 4,355  $ 3,861 
Right-of-use assets obtained in exchange for new operating lease liabilities $ 4,961  $ 4,838 
The table below sets forth our estimated minimum future lease obligations under our leases:
  Operating Leases Financing Leases
Year ended December 31,  
2021 $ 4,116  $ 3,485 
2022 8,098  5,178 
2023 6,659  3,676 
2024 5,516  2,565 
2025 4,488  2,213 
Thereafter 32,721  21,866 
Total minimum lease payments 61,598  38,983 
Less: interest 18,872  17,570 
Present value of lease liabilities $ 42,726  $ 21,413 
We have a future lease commitment for a certain 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 $3,000 as of June 30, 2021 and relates to a one-time payment due when specific criteria are met, which we estimate will be during the three months ended September 30, 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 two energy assets for $26,820 in cash under this facility during the six months ended June 30, 2021. As of June 30, 2021, approximately $284,885 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.
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.
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 the three months ended June 30, 2021 and 2020 and $114 and $112 for the six months ended June 30, 2021 and 2020, respectively.