Annual report pursuant to Section 13 and 15(d)

LEASES

v3.24.0.1
LEASES
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
LEASES
NOTE 16 — LEASES
Our Driftwood Project 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 other land leases are classified as finance leases and include one or more options to extend the lease term for up to 69 years or to terminate the lease within seven years, at our sole discretion. We are reasonably certain that those options and termination rights will not be exercised, and we have, therefore, excluded 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,
Leases Consolidated Balance Sheets Classification 2023 2022
Right of use asset
Operating Other Non-Current Assets $ 12,814  $ 13,303 
Finance Property, plant and equipment, net 126,225  56,708 
Total Leased Assets $ 139,039  $ 70,011 
Liabilities
Current
Operating Accrued and other liabilities $ 3,835  $ 2,734 
Finance Accrued and other liabilities 875  140 
Non-Current
Operating Other non-current liabilities 10,743  12,148 
Finance Finance lease liabilities 121,450  49,963 
Total leased liabilities $ 136,903  $ 64,985 
Lease costs recognized in our Consolidated Statements of Operations is summarized as follows (in thousands):
Year Ended December 31,
Lease costs 2023 2022 2021
Operating lease cost $ 3,915  $ 3,149  $ 2,519 
Finance lease cost
Amortization of lease assets 3,461  1,174  788 
Interest on lease liabilities 9,202  3,978  2,904 
Finance lease cost $ 12,663  $ 5,152  $ 3,692 
Total lease cost $ 16,578  $ 8,301  $ 6,211 
Other information about lease amounts recognized in our Consolidated Financial Statements is as follows:
December 31,
Lease term and discount rate 2023 2022
Weighted average remaining lease term (years)
Operating lease 3.5 4.5
Finance lease 36.1 48.4
Weighted average discount rate
Operating lease 6.4  % 6.2  %
Finance lease 8.7  % 9.4  %
The following shows other quantitative information for our operating and finance leases (in thousands):
Year Ended December 31,
. 2023 2022 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 4,333  $ 3,423  $ 2,953 
Operating cash flows from finance leases $ 7,950  $ 3,674  $ 1,813 
Financing cash flows from finance leases $ 512  $ 132  $ 1,926 
The table below presents an analysis of the maturity of our lease liability on an undiscounted basis and reconciles those amounts to the present value of the lease liability as of December 31, 2022 (in thousands):
Operating Finance
2024 $ 4,666  $ 10,491 
2025 4,721  10,491 
2026 4,756  10,491 
2027 1,954  10,491 
2028 275  10,491 
After 2028 —  322,334 
Total lease payments $ 16,372  $ 374,789 
Less: discount 1,794  252,465 
Present value of lease liability $ 14,578  $ 122,324 
LEASES
NOTE 16 — LEASES
Our Driftwood Project 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 other land leases are classified as finance leases and include one or more options to extend the lease term for up to 69 years or to terminate the lease within seven years, at our sole discretion. We are reasonably certain that those options and termination rights will not be exercised, and we have, therefore, excluded 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,
Leases Consolidated Balance Sheets Classification 2023 2022
Right of use asset
Operating Other Non-Current Assets $ 12,814  $ 13,303 
Finance Property, plant and equipment, net 126,225  56,708 
Total Leased Assets $ 139,039  $ 70,011 
Liabilities
Current
Operating Accrued and other liabilities $ 3,835  $ 2,734 
Finance Accrued and other liabilities 875  140 
Non-Current
Operating Other non-current liabilities 10,743  12,148 
Finance Finance lease liabilities 121,450  49,963 
Total leased liabilities $ 136,903  $ 64,985 
Lease costs recognized in our Consolidated Statements of Operations is summarized as follows (in thousands):
Year Ended December 31,
Lease costs 2023 2022 2021
Operating lease cost $ 3,915  $ 3,149  $ 2,519 
Finance lease cost
Amortization of lease assets 3,461  1,174  788 
Interest on lease liabilities 9,202  3,978  2,904 
Finance lease cost $ 12,663  $ 5,152  $ 3,692 
Total lease cost $ 16,578  $ 8,301  $ 6,211 
Other information about lease amounts recognized in our Consolidated Financial Statements is as follows:
December 31,
Lease term and discount rate 2023 2022
Weighted average remaining lease term (years)
Operating lease 3.5 4.5
Finance lease 36.1 48.4
Weighted average discount rate
Operating lease 6.4  % 6.2  %
Finance lease 8.7  % 9.4  %
The following shows other quantitative information for our operating and finance leases (in thousands):
Year Ended December 31,
. 2023 2022 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 4,333  $ 3,423  $ 2,953 
Operating cash flows from finance leases $ 7,950  $ 3,674  $ 1,813 
Financing cash flows from finance leases $ 512  $ 132  $ 1,926 
The table below presents an analysis of the maturity of our lease liability on an undiscounted basis and reconciles those amounts to the present value of the lease liability as of December 31, 2022 (in thousands):
Operating Finance
2024 $ 4,666  $ 10,491 
2025 4,721  10,491 
2026 4,756  10,491 
2027 1,954  10,491 
2028 275  10,491 
After 2028 —  322,334 
Total lease payments $ 16,372  $ 374,789 
Less: discount 1,794  252,465 
Present value of lease liability $ 14,578  $ 122,324