Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.23.3
LEASES
 9 Months Ended
Sep. 30, 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 September 30, 2023 December 31, 2022
Right of use asset
Operating Other non-current assets $ 13,628  $ 13,303 
Finance Property, plant and equipment, net 127,143  56,708 
Total leased assets $ 140,771  $ 70,011 
Liabilities
Current
Operating Accrued and other liabilities $ 3,751  $ 2,734 
Finance Accrued and other liabilities 858  140 
Non-current
Operating Other non-current liabilities 11,729  12,148 
Finance Finance lease liabilities 121,675  49,963 
Total leased liabilities $ 138,013  $ 64,985 
Lease costs recognized in our Condensed Consolidated Statements of Operations is summarized as follows (in thousands):
Nine Months Ended September 30,
Lease costs 2023 2022
Operating lease cost $ 2,860  $ 2,247 
Finance lease cost
Amortization of lease assets 2,545  881 
Interest on lease liabilities 6,788  2,983 
Finance lease cost 9,333  3,864 
Total lease cost $ 12,193  $ 6,111 
Other information about lease amounts recognized in our Condensed Consolidated Financial Statements is as follows:
September 30, 2023
Lease term and discount rate
Weighted average remaining lease term (years)
Operating lease 3.8
Finance lease 36.3
Weighted average discount rate
Operating lease 6.3  %
Finance lease 8.7  %
The following table includes other quantitative information for our operating and finance leases (in thousands):
Nine Months Ended September 30,
2023 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 2,628  $ 2,545 
Operating cash flows from finance leases 5,716  2,868 
Financing cash flows from finance leases 344  1 

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, 2023 (in thousands):
Operating Finance
2023 $ 1,144  $ 2,623 
2024 4,655  10,491 
2025 4,710  10,491 
2026 4,745  10,491 
2027 1,947  10,491 
After 2027 275  332,826 
Total lease payments $ 17,476  $ 377,413 
Less: discount 1,996  254,880 
Present value of lease liability $ 15,480  $ 122,533 
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 September 30, 2023 December 31, 2022
Right of use asset
Operating Other non-current assets $ 13,628  $ 13,303 
Finance Property, plant and equipment, net 127,143  56,708 
Total leased assets $ 140,771  $ 70,011 
Liabilities
Current
Operating Accrued and other liabilities $ 3,751  $ 2,734 
Finance Accrued and other liabilities 858  140 
Non-current
Operating Other non-current liabilities 11,729  12,148 
Finance Finance lease liabilities 121,675  49,963 
Total leased liabilities $ 138,013  $ 64,985 
Lease costs recognized in our Condensed Consolidated Statements of Operations is summarized as follows (in thousands):
Nine Months Ended September 30,
Lease costs 2023 2022
Operating lease cost $ 2,860  $ 2,247 
Finance lease cost
Amortization of lease assets 2,545  881 
Interest on lease liabilities 6,788  2,983 
Finance lease cost 9,333  3,864 
Total lease cost $ 12,193  $ 6,111 
Other information about lease amounts recognized in our Condensed Consolidated Financial Statements is as follows:
September 30, 2023
Lease term and discount rate
Weighted average remaining lease term (years)
Operating lease 3.8
Finance lease 36.3
Weighted average discount rate
Operating lease 6.3  %
Finance lease 8.7  %
The following table includes other quantitative information for our operating and finance leases (in thousands):
Nine Months Ended September 30,
2023 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 2,628  $ 2,545 
Operating cash flows from finance leases 5,716  2,868 
Financing cash flows from finance leases 344  1 

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, 2023 (in thousands):
Operating Finance
2023 $ 1,144  $ 2,623 
2024 4,655  10,491 
2025 4,710  10,491 
2026 4,745  10,491 
2027 1,947  10,491 
After 2027 275  332,826 
Total lease payments $ 17,476  $ 377,413 
Less: discount 1,996  254,880 
Present value of lease liability $ 15,480  $ 122,533