Quarterly report pursuant to Section 13 or 15(d)

LEASES

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LEASES
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Leases
NOTE 14 — 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 Condensed Consolidated Balance Sheets (in thousands):
Leases Balance Sheets Classification March 31, 2024 December 31, 2023
Right of use asset
Operating Other non-current assets $ 11,985  $ 12,814 
Finance Property, plant and equipment, net 125,308  126,225 
Total leased assets $ 137,293  $ 139,039 
Liabilities
Current
Operating Accrued and other liabilities $ 3,910  $ 3,835 
Finance Accrued and other liabilities 891  875 
Non-current
Operating Other non-current liabilities 9,737  10,743 
Finance Finance lease liabilities 121,221  121,450 
Total leased liabilities $ 135,759  $ 136,903 
Lease costs recognized in our Condensed Consolidated Statements of Operations is summarized as follows (in thousands):
Three Months Ended March 31,
Lease costs 2024 2023
Operating lease cost $ 1,056  $ 869 
Finance lease cost
Amortization of lease assets 918  709 
Interest on lease liabilities 2,410  1,948 
Finance lease cost 3,328  2,657 
Total lease cost $ 4,384  $ 3,526 
Other information about lease amounts recognized in our Condensed Consolidated Financial Statements is as follows:
March 31, 2024
Lease term and discount rate
Weighted average remaining lease term (years)
Operating lease 3.3
Finance lease 35.8
Weighted average discount rate
Operating lease 6.4  %
Finance lease 8.7  %
The following table includes other quantitative information for our operating and finance leases (in thousands):
Three Months Ended March 31,
2024 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 938  $ 974 
Operating cash flows from finance leases 2,226  807 
Financing cash flows from finance leases 177  — 
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 March 31, 2024 (in thousands):
Operating Finance
2024 $ 3,508  $ 7,869 
2025 4,724  10,491 
2026 4,758  10,491 
2027 1,955  10,491 
2028 275  10,491 
After 2028 —  322,334 
Total lease payments $ 15,220  $ 372,167 
Less: discount 1,572  250,055 
Present value of lease liability $ 13,648  $ 122,112 
Leases
NOTE 14 — 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 Condensed Consolidated Balance Sheets (in thousands):
Leases Balance Sheets Classification March 31, 2024 December 31, 2023
Right of use asset
Operating Other non-current assets $ 11,985  $ 12,814 
Finance Property, plant and equipment, net 125,308  126,225 
Total leased assets $ 137,293  $ 139,039 
Liabilities
Current
Operating Accrued and other liabilities $ 3,910  $ 3,835 
Finance Accrued and other liabilities 891  875 
Non-current
Operating Other non-current liabilities 9,737  10,743 
Finance Finance lease liabilities 121,221  121,450 
Total leased liabilities $ 135,759  $ 136,903 
Lease costs recognized in our Condensed Consolidated Statements of Operations is summarized as follows (in thousands):
Three Months Ended March 31,
Lease costs 2024 2023
Operating lease cost $ 1,056  $ 869 
Finance lease cost
Amortization of lease assets 918  709 
Interest on lease liabilities 2,410  1,948 
Finance lease cost 3,328  2,657 
Total lease cost $ 4,384  $ 3,526 
Other information about lease amounts recognized in our Condensed Consolidated Financial Statements is as follows:
March 31, 2024
Lease term and discount rate
Weighted average remaining lease term (years)
Operating lease 3.3
Finance lease 35.8
Weighted average discount rate
Operating lease 6.4  %
Finance lease 8.7  %
The following table includes other quantitative information for our operating and finance leases (in thousands):
Three Months Ended March 31,
2024 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 938  $ 974 
Operating cash flows from finance leases 2,226  807 
Financing cash flows from finance leases 177  — 
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 March 31, 2024 (in thousands):
Operating Finance
2024 $ 3,508  $ 7,869 
2025 4,724  10,491 
2026 4,758  10,491 
2027 1,955  10,491 
2028 275  10,491 
After 2028 —  322,334 
Total lease payments $ 15,220  $ 372,167 
Less: discount 1,572  250,055 
Present value of lease liability $ 13,648  $ 122,112