Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.23.1
LEASES
 3 Months Ended
Mar. 31, 2023
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 Condensed Consolidated Balance Sheets Classification March 31, 2023 December 31, 2022
Right of use asset
Operating Other non-current assets $ 12,661  $ 13,303 
Finance Property, plant and equipment, net 128,977  56,708 
Total leased assets $ 141,638  $ 70,011 
Liabilities
Current
Operating Accrued and other liabilities $ 2,880  $ 2,734 
Finance Accrued and other liabilities 827  140 
Non-current
Operating Other non-current liabilities 11,375  12,148 
Finance Finance lease liabilities 122,112  49,963 
Total leased liabilities $ 137,194  $ 64,985 
Lease costs recognized in our Condensed Consolidated Statements of Operations is summarized as follows (in thousands):
Three months ended
Lease Costs 2023 2022
Operating lease cost $ 869  $ 685 
Finance lease cost
Amortization of lease assets 709  294 
Interest on lease liabilities 1,948  994 
Finance lease cost $ 2,657  $ 1,288 
Total lease cost $ 3,526  $ 1,973 
Other information about lease amounts recognized in our Condensed Consolidated Financial Statements is as follows:
December 31,
Lease term and discount rate 2023 2022
Weighted average remaining lease term (years)
Operating lease 4.3 4.5
Finance lease 36.8 48.4
Weighted average discount rate
Operating lease 6.2  % 6.2  %
Finance lease 8.6  % 9.4  %
The following table includes other quantitative information for our operating and finance leases (in thousands):
Three months ended March 31,
2023 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 974  $ 743 
Operating cash flows from finance leases $ 807  $ — 
Financing cash flows from finance leases $ —  $ — 

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, 2023 (in thousands):
Operating Finance
2023 $ 2,728  $ 7,869 
2024 3,850  10,491 
2025 3,893  10,491 
2026 3,914  10,491 
2027 1,666  10,491 
After 2027 275  332,826 
Total lease payments $ 16,326  $ 382,659 
Less: discount 2,071  259,721 
Present value of lease liability $ 14,255  $ 122,938 
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 Condensed Consolidated Balance Sheets Classification March 31, 2023 December 31, 2022
Right of use asset
Operating Other non-current assets $ 12,661  $ 13,303 
Finance Property, plant and equipment, net 128,977  56,708 
Total leased assets $ 141,638  $ 70,011 
Liabilities
Current
Operating Accrued and other liabilities $ 2,880  $ 2,734 
Finance Accrued and other liabilities 827  140 
Non-current
Operating Other non-current liabilities 11,375  12,148 
Finance Finance lease liabilities 122,112  49,963 
Total leased liabilities $ 137,194  $ 64,985 
Lease costs recognized in our Condensed Consolidated Statements of Operations is summarized as follows (in thousands):
Three months ended
Lease Costs 2023 2022
Operating lease cost $ 869  $ 685 
Finance lease cost
Amortization of lease assets 709  294 
Interest on lease liabilities 1,948  994 
Finance lease cost $ 2,657  $ 1,288 
Total lease cost $ 3,526  $ 1,973 
Other information about lease amounts recognized in our Condensed Consolidated Financial Statements is as follows:
December 31,
Lease term and discount rate 2023 2022
Weighted average remaining lease term (years)
Operating lease 4.3 4.5
Finance lease 36.8 48.4
Weighted average discount rate
Operating lease 6.2  % 6.2  %
Finance lease 8.6  % 9.4  %
The following table includes other quantitative information for our operating and finance leases (in thousands):
Three months ended March 31,
2023 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 974  $ 743 
Operating cash flows from finance leases $ 807  $ — 
Financing cash flows from finance leases $ —  $ — 

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, 2023 (in thousands):
Operating Finance
2023 $ 2,728  $ 7,869 
2024 3,850  10,491 
2025 3,893  10,491 
2026 3,914  10,491 
2027 1,666  10,491 
After 2027 275  332,826 
Total lease payments $ 16,326  $ 382,659 
Less: discount 2,071  259,721 
Present value of lease liability $ 14,255  $ 122,938