Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.22.2.2
LEASES
 9 Months Ended
Sep. 30, 2022
Leases [Abstract]  
LEASES
NOTE 14 — 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):
Leases Consolidated Balance Sheets Classification September 30, 2022 December 31, 2021
Right of use asset
Operating Other non-current assets $ 13,932  $ 10,166 
Finance Property, plant and equipment, net 57,002  57,883 
Total leased assets $ 70,934  $ 68,049 
Liabilities
Current
Operating Accrued and other liabilities $ 2,570  $ 2,147 
Finance Accrued and other liabilities 138  132 
Non-Current
Operating Other non-current liabilities 12,771  9,563 
Finance Finance lease liabilities 49,998  50,103 
Total leased liabilities $ 65,477  $ 61,945 
Lease costs recognized in our Consolidated Statements of Operations is summarized as follows (in thousands):
Nine months ended
Lease costs 2022 2021
Operating lease cost $ 2,247  $ 2,056 
Finance lease cost
Amortization of lease assets 881  494 
Interest on lease liabilities 2,983  1,908 
Finance lease cost $ 3,864  $ 2,402 
Total lease cost $ 6,111  $ 4,458 
Other information about lease amounts recognized in our Consolidated Financial Statements is as follows:
September 30, 2022
Lease term and discount rate
Weighted average remaining lease term (years)
Operating lease 4.8
Finance lease 48.7
Weighted average discount rate
Operating lease 6.2  %
Finance lease 9.4  %
The following table includes other quantitative information for our operating and finance leases (in thousands):
Nine Months Ended September 30,
2022 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 2,545  $ 2,173 
Operating cash flows from finance leases $ 2,868  $ 1,007 
Financing cash flows from finance leases $ 1  $ 1,862 

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 September 30, 2022 (in thousands):
Operating Finance
2022 $ 822  $ 1,229 
2023 3,579  4,111 
2024 3,843  4,111 
2025 3,886  4,111 
2026 3,908  4,111 
After 2026 1,936  182,222 
Total lease payments $ 17,974  $ 199,895 
Less: discount 2,633  149,759 
Present value of lease liability $ 15,341  $ 50,136 
LEASES
NOTE 14 — 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):
Leases Consolidated Balance Sheets Classification September 30, 2022 December 31, 2021
Right of use asset
Operating Other non-current assets $ 13,932  $ 10,166 
Finance Property, plant and equipment, net 57,002  57,883 
Total leased assets $ 70,934  $ 68,049 
Liabilities
Current
Operating Accrued and other liabilities $ 2,570  $ 2,147 
Finance Accrued and other liabilities 138  132 
Non-Current
Operating Other non-current liabilities 12,771  9,563 
Finance Finance lease liabilities 49,998  50,103 
Total leased liabilities $ 65,477  $ 61,945 
Lease costs recognized in our Consolidated Statements of Operations is summarized as follows (in thousands):
Nine months ended
Lease costs 2022 2021
Operating lease cost $ 2,247  $ 2,056 
Finance lease cost
Amortization of lease assets 881  494 
Interest on lease liabilities 2,983  1,908 
Finance lease cost $ 3,864  $ 2,402 
Total lease cost $ 6,111  $ 4,458 
Other information about lease amounts recognized in our Consolidated Financial Statements is as follows:
September 30, 2022
Lease term and discount rate
Weighted average remaining lease term (years)
Operating lease 4.8
Finance lease 48.7
Weighted average discount rate
Operating lease 6.2  %
Finance lease 9.4  %
The following table includes other quantitative information for our operating and finance leases (in thousands):
Nine Months Ended September 30,
2022 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 2,545  $ 2,173 
Operating cash flows from finance leases $ 2,868  $ 1,007 
Financing cash flows from finance leases $ 1  $ 1,862 

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 September 30, 2022 (in thousands):
Operating Finance
2022 $ 822  $ 1,229 
2023 3,579  4,111 
2024 3,843  4,111 
2025 3,886  4,111 
2026 3,908  4,111 
After 2026 1,936  182,222 
Total lease payments $ 17,974  $ 199,895 
Less: discount 2,633  149,759 
Present value of lease liability $ 15,341  $ 50,136