XML 27 R17.htm IDEA: XBRL DOCUMENT v3.21.2
Leases and Other Finance Obligations
9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Leases and Other Finance Obligations

10. Leases and Other Finance Obligations

 

Right-of-use assets and lease liabilities consisted of the following (in thousands) as of:

 

 

 

September 30,

2021

 

 

December 31,

2020

 

Assets

 

 

 

 

 

 

 

 

Operating lease right-of-use assets, net

 

$

444,073

 

 

$

274,562

 

Finance lease right-of-use assets, net (included in property, plant and equipment, net)

 

 

4,490

 

 

 

34,905

 

Total right-of-use assets

 

$

448,563

 

 

$

309,467

 

Liabilities

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

 

Current portion of operating lease liabilities

 

$

94,651

 

 

$

61,625

 

Current portion of finance lease liabilities (included in current maturities of long-term debt)

 

 

1,444

 

 

 

12,178

 

Noncurrent

 

 

 

 

 

 

 

 

Noncurrent portion of operating lease liabilities

 

 

360,271

 

 

 

219,239

 

Noncurrent portion of finance lease liabilities (included in long-term debt, net of current maturities)

 

 

2,709

 

 

 

11,695

 

Total lease liabilities

 

$

459,075

 

 

$

304,737

 

 

 

Total lease costs consisted of the following (in thousands):

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Operating lease costs (1)

 

$

33,820

 

 

$

21,300

 

 

$

99,292

 

 

$

64,293

 

Finance lease costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of finance lease right-of-use assets

 

 

397

 

 

 

1,548

 

 

 

1,787

 

 

 

4,704

 

Interest on finance lease liabilities

 

 

53

 

 

 

382

 

 

 

318

 

 

 

1,041

 

Variable lease costs

 

 

6,827

 

 

 

4,613

 

 

 

20,308

 

 

 

13,275

 

Total lease costs

 

$

41,097

 

 

$

27,843

 

 

$

121,705

 

 

$

83,313

 

 

 

(1)

Includes short-term lease costs and sublease income which were not material for the three and nine months ended September 30, 2021 and 2020.

Future maturities of lease liabilities as of September 30, 2021 were as follows (in thousands):

 

 

 

Finance

Leases

 

 

Operating

Leases

 

2021 (from October 1, 2021)

 

$

409

 

 

$

29,490

 

2022

 

 

1,570

 

 

 

112,718

 

2023

 

 

1,337

 

 

 

95,739

 

2024

 

 

480

 

 

 

78,513

 

2025

 

 

257

 

 

 

56,062

 

Thereafter

 

 

438

 

 

 

167,888

 

Total lease payments

 

 

4,491

 

 

 

540,410

 

Less: amount representing interest

 

 

(338

)

 

 

(85,488

)

Present value of lease liabilities

 

 

4,153

 

 

 

454,922

 

Less: current portion

 

 

(1,444

)

 

 

(94,651

)

Long-term lease liabilities, net of current portion

 

$

2,709

 

 

$

360,271

 

 

Weighted average lease terms and discount rates were as follows:

 

 

 

 

September 30,

2021

 

 

 

December 31,

2020

 

Weighted average remaining lease term (years)

 

 

 

 

 

 

 

 

Operating leases

 

 

6.4

 

 

 

6.3

 

Finance leases

 

 

3.6

 

 

 

2.1

 

Weighted average discount rate

 

 

 

 

 

 

 

 

Operating leases

 

 

5.4

%

 

 

6.3

%

Finance leases

 

 

4.4

%

 

 

5.9

%

 

The following table presents cash paid for amounts included in the measurement of lease liabilities (in thousands):

 

 

 

Nine Months Ended
September 30,

 

 

 

 

2021

 

 

2020

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

90,858

 

$

62,185

 

Operating cash flows from finance leases

 

 

318

 

 

1,041

 

Financing cash flows from finance leases

 

 

27,565

 

 

9,961

 

 

Residual value guarantees in our lease agreements are not material. Our lease agreements do not impose any significant restrictions or covenants on us. As of September 30, 2021, we do not have any material leases that have been signed, but have not yet commenced. Leases with related parties are not significant as of September 30, 2021 nor for the three and nine months ended September 30, 2021 and 2020.

Other Finance Obligations

In addition to the operating and finance lease arrangements described above, the Company is party to 121 individual property lease agreements with a single lessor as of September 30, 2021. These lease agreements had initial terms ranging from nine to 15 years with renewal options in five-year increments providing for up to approximately 30-year total lease terms. A related agreement between the lessor and the Company gives the Company the right to acquire a limited number of the leased facilities at fair market value. These purchase rights represent a form of continuing involvement with these properties, which precluded sale-leaseback accounting. As a result, the Company treats all of the properties that it leases from this lessor as a financing arrangement.

We were deemed the owner of certain of our facilities during their construction period based on an evaluation made in accordance with the Leases topic of the Codification. Effectively, a sale and leaseback of these facilities occurred when construction was completed and the lease term began. These transactions did not qualify for sale-leaseback accounting. As a result, the Company treats the lease of these facilities as a financing arrangement.

As of September 30, 2021, other finance obligations consist of $203.5 million, with cash payments of $5.2 million and $15.9 million for the three and nine months ended September 30, 2021, respectively. These other finance obligations are included on the condensed consolidated balance sheet as part of long-term debt. The related assets are recorded as components of property, plant, and equipment on the condensed consolidated balance sheet.

Future minimum commitments for other finance obligations as of September 30, 2021 were as follows (in thousands):

 

2021 (from October 1, 2021)

 

$

4,236

 

2022

 

 

16,886

 

2023

 

 

16,893

 

2024

 

 

16,911

 

2025

 

 

16,911

 

Thereafter

 

 

174,344

 

Total

 

$

246,181