| LEASES |
NOTE 17 — LEASES
Our land leases are classified as finance leases and include one or more options to extend the lease term for up to 40 years, as well as to terminate the lease within five years, at our sole discretion. We are reasonably certain that those options will be exercised, and that our termination rights will not be exercised, and we have, therefore, included those assumptions within our right of use assets and corresponding lease liabilities. Our office space leases are classified as operating leases and include one or more options to extend the lease term up to 10 years, at our sole discretion. As we are not reasonably certain that those options will be exercised, none are recognized as part of our right of use assets and lease liabilities. As none of our leases provide an implicit rate, we have determined our own discount rate.
The following table shows the classification and location of our right-of-use assets and lease liabilities on our Consolidated Balance Sheets (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
Consolidated Balance Sheets |
|
2021 |
|
2020 |
Leases |
|
Classification |
|
|
|
|
|
|
Right of use asset |
|
|
|
|
|
|
|
|
Operating |
|
Other Non-Current Assets |
|
$ |
10,166 |
|
$ |
11,884 |
Finance |
|
Property, plant and equipment, net |
|
|
57,883 |
|
|
20,018 |
Total Leased Assets |
|
|
|
$ |
68,049 |
|
$ |
31,902 |
Liabilities |
|
|
|
|
|
|
|
|
Current |
|
|
|
|
|
|
|
|
Operating |
|
Accrued and other liabilities |
|
$ |
2,147 |
|
$ |
1,947 |
Finance |
|
Accrued and other liabilities |
|
|
132 |
|
|
3 |
Non-Current |
|
|
|
|
|
|
|
|
Operating |
|
Other non-current liabilities |
|
|
9,563 |
|
|
11,709 |
Finance |
|
Other non-current liabilities |
|
|
50,103 |
|
|
13,506 |
Total leased liabilities |
|
|
|
$ |
61,945 |
|
$ |
27,165 |
Lease costs recognized in our Consolidated Statements of Operations is summarized as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2021 |
|
2020 |
|
2019 |
Lease Costs |
|
|
|
|
|
|
|
|
|
Operating lease cost |
|
$ |
2,519 |
|
$ |
2,741 |
|
$ |
3,616 |
Finance lease cost |
|
|
|
|
|
|
|
|
|
Amortization of lease assets |
|
|
788 |
|
|
367 |
|
|
44 |
Interest on lease liabilities |
|
|
2,904 |
|
|
1,694 |
|
|
197 |
Finance lease cost |
|
$ |
3,692 |
|
$ |
2,061 |
|
$ |
241 |
Total lease cost |
|
$ |
6,211 |
|
$ |
4,802 |
|
$ |
3,857 |
Other information about lease amounts recognized in our Consolidated Financial Statements is as follows:
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2021 |
|
2020 |
|
Lease term and discount rate |
|
|
|
|
|
Weighted average remaining lease term (years) |
|
|
|
|
|
Operating lease |
|
4.7 |
|
5.7 |
|
Finance lease |
|
49.4 |
|
50.2 |
|
Weighted average discount rate |
|
|
|
|
|
Operating lease |
|
8.0 |
% |
8.0 |
% |
Finance lease |
|
9.4 |
% |
13.5 |
% |
The following table includes other quantitative information for our operating and finance leases (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2021 |
|
2020 |
|
2019 |
Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
|
|
|
Operating cash flows from operating leases |
|
$ |
2,953 |
|
$ |
2,847 |
|
$ |
3,173 |
Operating cash flows from finance leases |
|
$ |
1,813 |
|
$ |
1,056 |
|
$ |
— |
Financing cash flows from finance leases |
|
$ |
1,926 |
|
$ |
1,777 |
|
$ |
2,224 |
The table below presents a maturity analysis of our lease liability on an undiscounted basis and reconciles those amounts to the present value of the lease liability as of December 31, 2021 (in thousands):
|
|
|
|
|
|
|
|
|
Operating |
|
Finance |
2022 |
|
$ |
3,006 |
|
$ |
4,111 |
2023 |
|
|
3,044 |
|
|
4,111 |
2024 |
|
|
3,081 |
|
|
4,111 |
2025 |
|
|
3,119 |
|
|
4,111 |
2026 |
|
|
1,261 |
|
|
4,111 |
After 2026 |
|
|
600 |
|
|
182,222 |
Total lease payments |
|
$ |
14,111 |
|
$ |
202,777 |
Less: discount |
|
|
2,401 |
|
|
152,542 |
Present value of lease liability |
|
$ |
11,710 |
|
$ |
50,235 |
|
| LEASES |
NOTE 17 — LEASES
Our land leases are classified as finance leases and include one or more options to extend the lease term for up to 40 years, as well as to terminate the lease within five years, at our sole discretion. We are reasonably certain that those options will be exercised, and that our termination rights will not be exercised, and we have, therefore, included those assumptions within our right of use assets and corresponding lease liabilities. Our office space leases are classified as operating leases and include one or more options to extend the lease term up to 10 years, at our sole discretion. As we are not reasonably certain that those options will be exercised, none are recognized as part of our right of use assets and lease liabilities. As none of our leases provide an implicit rate, we have determined our own discount rate.
The following table shows the classification and location of our right-of-use assets and lease liabilities on our Consolidated Balance Sheets (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
Consolidated Balance Sheets |
|
2021 |
|
2020 |
Leases |
|
Classification |
|
|
|
|
|
|
Right of use asset |
|
|
|
|
|
|
|
|
Operating |
|
Other Non-Current Assets |
|
$ |
10,166 |
|
$ |
11,884 |
Finance |
|
Property, plant and equipment, net |
|
|
57,883 |
|
|
20,018 |
Total Leased Assets |
|
|
|
$ |
68,049 |
|
$ |
31,902 |
Liabilities |
|
|
|
|
|
|
|
|
Current |
|
|
|
|
|
|
|
|
Operating |
|
Accrued and other liabilities |
|
$ |
2,147 |
|
$ |
1,947 |
Finance |
|
Accrued and other liabilities |
|
|
132 |
|
|
3 |
Non-Current |
|
|
|
|
|
|
|
|
Operating |
|
Other non-current liabilities |
|
|
9,563 |
|
|
11,709 |
Finance |
|
Other non-current liabilities |
|
|
50,103 |
|
|
13,506 |
Total leased liabilities |
|
|
|
$ |
61,945 |
|
$ |
27,165 |
Lease costs recognized in our Consolidated Statements of Operations is summarized as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2021 |
|
2020 |
|
2019 |
Lease Costs |
|
|
|
|
|
|
|
|
|
Operating lease cost |
|
$ |
2,519 |
|
$ |
2,741 |
|
$ |
3,616 |
Finance lease cost |
|
|
|
|
|
|
|
|
|
Amortization of lease assets |
|
|
788 |
|
|
367 |
|
|
44 |
Interest on lease liabilities |
|
|
2,904 |
|
|
1,694 |
|
|
197 |
Finance lease cost |
|
$ |
3,692 |
|
$ |
2,061 |
|
$ |
241 |
Total lease cost |
|
$ |
6,211 |
|
$ |
4,802 |
|
$ |
3,857 |
Other information about lease amounts recognized in our Consolidated Financial Statements is as follows:
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2021 |
|
2020 |
|
Lease term and discount rate |
|
|
|
|
|
Weighted average remaining lease term (years) |
|
|
|
|
|
Operating lease |
|
4.7 |
|
5.7 |
|
Finance lease |
|
49.4 |
|
50.2 |
|
Weighted average discount rate |
|
|
|
|
|
Operating lease |
|
8.0 |
% |
8.0 |
% |
Finance lease |
|
9.4 |
% |
13.5 |
% |
The following table includes other quantitative information for our operating and finance leases (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2021 |
|
2020 |
|
2019 |
Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
|
|
|
Operating cash flows from operating leases |
|
$ |
2,953 |
|
$ |
2,847 |
|
$ |
3,173 |
Operating cash flows from finance leases |
|
$ |
1,813 |
|
$ |
1,056 |
|
$ |
— |
Financing cash flows from finance leases |
|
$ |
1,926 |
|
$ |
1,777 |
|
$ |
2,224 |
The table below presents a maturity analysis of our lease liability on an undiscounted basis and reconciles those amounts to the present value of the lease liability as of December 31, 2021 (in thousands):
|
|
|
|
|
|
|
|
|
Operating |
|
Finance |
2022 |
|
$ |
3,006 |
|
$ |
4,111 |
2023 |
|
|
3,044 |
|
|
4,111 |
2024 |
|
|
3,081 |
|
|
4,111 |
2025 |
|
|
3,119 |
|
|
4,111 |
2026 |
|
|
1,261 |
|
|
4,111 |
After 2026 |
|
|
600 |
|
|
182,222 |
Total lease payments |
|
$ |
14,111 |
|
$ |
202,777 |
Less: discount |
|
|
2,401 |
|
|
152,542 |
Present value of lease liability |
|
$ |
11,710 |
|
$ |
50,235 |
|