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Leases | 9 Months Ended
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Sep. 30, 2021
Leases [Abstract] |
Leases | Leases Lessee Accounting As of September 30, 2021 and December 31, 2020, operating right-of-use (“ROU”) assets and lease liabilities were $27.3 and $27.1 ($5.4 of which was current) and $29.0 and $28.7 ($5.1 of which was current), respectively. The weighted-average remaining term for lease contracts was 4.9 years at September 30, 2021, with maturity dates ranging from October 2021 to February 2029. The weighted-average discount rate was 2.3% at September 30, 2021. ROU assets are classified as property, plant and equipment, net in the condensed consolidated balance sheets. We incurred $3.0 and $2.5 of rental expense under operating leases for the three months ended September 30, 2021 and 2020, respectively, and $9.0 and $8.4 for the nine months ended September 30, 2021 and 2020, respectively. Certain operating leases contain rent escalation clauses and lease concessions that require additional rental payments in the later years of the term. Rent expense for these types of leases is recognized on a straight-line basis over the minimum lease term. Adjustments for straight-line rental expense for the respective periods was not material and as such, the majority of expense recognized was reflected in cash provided by operating activities for the respective periods. This expense consisted primarily of payments for base rent on building and equipment leases. Payments related to short-term lease costs and taxes and variable service charges on leased properties were immaterial. In addition, we have the right, but no obligation, to renew certain leases for various renewal terms. The following table summarizes future minimum lease payments for non-cancelable operating leases as of September 30, 2021:
2021 | $ | 2.1 |
2022 | 6.9 |
2023 | 6.3 |
2024 | 6.2 |
2025 | 5.5 |
Thereafter (1) | 3.6 |
Total future minimum lease payments | $ | 30.6 |
_______________ (1) As of September 30, 2021, future minimum lease payments for non-cancelable operating leases for the period subsequent to 2025 relate to eight leased facilities. Lessor Accounting We lease equipment manufactured by Chart primarily through our Cryo-Lease program as sales-type and operating leases. The net investment of our lease receivables is measured at the commencement date as the present value of the lease payments not yet received. As of September 30, 2021 and December 31, 2020, our short-term net investment in sales type leases was $7.6 and $0.2, respectively and is included in other current assets. Our long-term net investment in sales type leases was $26.5 and $0.5 and is included in other assets in our condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020. For sales type leases, interest income was $0.3 and $0.5 in the condensed consolidated statements of income for the three and nine months ended September 30, 2021, respectively. Operating leases are reported as equipment leased to others within property, plant, and equipment, net in our condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020. Operating leases offered by Chart may include early termination options. At the end of a lease, a lessee generally has the option to either extend the lease, purchase the underlying equipment for a fixed price or return it to Chart. The lease agreements clearly define applicable return conditions and remedies for non-compliance to ensure that leased equipment will be in good operating condition upon return. The following table represents sales from sales-type and operating leases:
| Three Months Ended September 30, 2021 |  | Nine Months Ended September 30, 2021
Sales-type leases | $ | 13.0 |  |  | $ | 36.2 |
Operating leases | 0.7 |  |  | 1.7 |
Total sales from leases | $ | 13.7 |  |  | $ | 37.9 |
Sales from sales-type and operating leases are presented net of sales tax and other related taxes. Interest income is recognized over the lease term using the effective interest method. The following table represents scheduled payments for sales-type leases:
| September 30, 2021
Remainder of 2021 | $ | 1.7 |
2022 | 7.8 |
2023 | 7.8 |
2024 | 7.8 |
2025 | 7.8 |
Thereafter | 6.5 |
Total | 39.4 |
Less: unearned income | 5.3 |
Total | $ | 34.1 |
Lease payments from operating leases are recorded as income on a straight-line basis over the lease term. Operating lease assets are recorded at cost and depreciated based on their useful lives on a straight-line basis. The following table represents the cost of equipment leased to others:
| September 30, 2021 |  | December 31, 2020
Equipment leased to others, cost | $ | 12.0 |  |  | $ | 5.1 |
Less: accumulated depreciation | 2.0 |  |  | 1.4 |
Equipment leased to others, net | $ | 10.0 |  |  | $ | 3.7 |
The following table represents payments due for operating leases:
| September 30, 2021
Remainder of 2021 | $ | 0.3 |
2022 | 0.4 |
2023 | 0.2 |
2024 | 0.2 |
2025 | 0.1 |
Thereafter | 0.1 |
Total | $ | 1.3 |
Leases | Leases Lessee Accounting As of September 30, 2021 and December 31, 2020, operating right-of-use (“ROU”) assets and lease liabilities were $27.3 and $27.1 ($5.4 of which was current) and $29.0 and $28.7 ($5.1 of which was current), respectively. The weighted-average remaining term for lease contracts was 4.9 years at September 30, 2021, with maturity dates ranging from October 2021 to February 2029. The weighted-average discount rate was 2.3% at September 30, 2021. ROU assets are classified as property, plant and equipment, net in the condensed consolidated balance sheets. We incurred $3.0 and $2.5 of rental expense under operating leases for the three months ended September 30, 2021 and 2020, respectively, and $9.0 and $8.4 for the nine months ended September 30, 2021 and 2020, respectively. Certain operating leases contain rent escalation clauses and lease concessions that require additional rental payments in the later years of the term. Rent expense for these types of leases is recognized on a straight-line basis over the minimum lease term. Adjustments for straight-line rental expense for the respective periods was not material and as such, the majority of expense recognized was reflected in cash provided by operating activities for the respective periods. This expense consisted primarily of payments for base rent on building and equipment leases. Payments related to short-term lease costs and taxes and variable service charges on leased properties were immaterial. In addition, we have the right, but no obligation, to renew certain leases for various renewal terms. The following table summarizes future minimum lease payments for non-cancelable operating leases as of September 30, 2021:
2021 | $ | 2.1 |
2022 | 6.9 |
2023 | 6.3 |
2024 | 6.2 |
2025 | 5.5 |
Thereafter (1) | 3.6 |
Total future minimum lease payments | $ | 30.6 |
_______________ (1) As of September 30, 2021, future minimum lease payments for non-cancelable operating leases for the period subsequent to 2025 relate to eight leased facilities. Lessor Accounting We lease equipment manufactured by Chart primarily through our Cryo-Lease program as sales-type and operating leases. The net investment of our lease receivables is measured at the commencement date as the present value of the lease payments not yet received. As of September 30, 2021 and December 31, 2020, our short-term net investment in sales type leases was $7.6 and $0.2, respectively and is included in other current assets. Our long-term net investment in sales type leases was $26.5 and $0.5 and is included in other assets in our condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020. For sales type leases, interest income was $0.3 and $0.5 in the condensed consolidated statements of income for the three and nine months ended September 30, 2021, respectively. Operating leases are reported as equipment leased to others within property, plant, and equipment, net in our condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020. Operating leases offered by Chart may include early termination options. At the end of a lease, a lessee generally has the option to either extend the lease, purchase the underlying equipment for a fixed price or return it to Chart. The lease agreements clearly define applicable return conditions and remedies for non-compliance to ensure that leased equipment will be in good operating condition upon return. The following table represents sales from sales-type and operating leases:
| Three Months Ended September 30, 2021 |  | Nine Months Ended September 30, 2021
Sales-type leases | $ | 13.0 |  |  | $ | 36.2 |
Operating leases | 0.7 |  |  | 1.7 |
Total sales from leases | $ | 13.7 |  |  | $ | 37.9 |
Sales from sales-type and operating leases are presented net of sales tax and other related taxes. Interest income is recognized over the lease term using the effective interest method. The following table represents scheduled payments for sales-type leases:
| September 30, 2021
Remainder of 2021 | $ | 1.7 |
2022 | 7.8 |
2023 | 7.8 |
2024 | 7.8 |
2025 | 7.8 |
Thereafter | 6.5 |
Total | 39.4 |
Less: unearned income | 5.3 |
Total | $ | 34.1 |
Lease payments from operating leases are recorded as income on a straight-line basis over the lease term. Operating lease assets are recorded at cost and depreciated based on their useful lives on a straight-line basis. The following table represents the cost of equipment leased to others:
| September 30, 2021 |  | December 31, 2020
Equipment leased to others, cost | $ | 12.0 |  |  | $ | 5.1 |
Less: accumulated depreciation | 2.0 |  |  | 1.4 |
Equipment leased to others, net | $ | 10.0 |  |  | $ | 3.7 |
The following table represents payments due for operating leases:
| September 30, 2021
Remainder of 2021 | $ | 0.3 |
2022 | 0.4 |
2023 | 0.2 |
2024 | 0.2 |
2025 | 0.1 |
Thereafter | 0.1 |
Total | $ | 1.3 |
Leases | Leases Lessee Accounting As of September 30, 2021 and December 31, 2020, operating right-of-use (“ROU”) assets and lease liabilities were $27.3 and $27.1 ($5.4 of which was current) and $29.0 and $28.7 ($5.1 of which was current), respectively. The weighted-average remaining term for lease contracts was 4.9 years at September 30, 2021, with maturity dates ranging from October 2021 to February 2029. The weighted-average discount rate was 2.3% at September 30, 2021. ROU assets are classified as property, plant and equipment, net in the condensed consolidated balance sheets. We incurred $3.0 and $2.5 of rental expense under operating leases for the three months ended September 30, 2021 and 2020, respectively, and $9.0 and $8.4 for the nine months ended September 30, 2021 and 2020, respectively. Certain operating leases contain rent escalation clauses and lease concessions that require additional rental payments in the later years of the term. Rent expense for these types of leases is recognized on a straight-line basis over the minimum lease term. Adjustments for straight-line rental expense for the respective periods was not material and as such, the majority of expense recognized was reflected in cash provided by operating activities for the respective periods. This expense consisted primarily of payments for base rent on building and equipment leases. Payments related to short-term lease costs and taxes and variable service charges on leased properties were immaterial. In addition, we have the right, but no obligation, to renew certain leases for various renewal terms. The following table summarizes future minimum lease payments for non-cancelable operating leases as of September 30, 2021:
2021 | $ | 2.1 |
2022 | 6.9 |
2023 | 6.3 |
2024 | 6.2 |
2025 | 5.5 |
Thereafter (1) | 3.6 |
Total future minimum lease payments | $ | 30.6 |
_______________ (1) As of September 30, 2021, future minimum lease payments for non-cancelable operating leases for the period subsequent to 2025 relate to eight leased facilities. Lessor Accounting We lease equipment manufactured by Chart primarily through our Cryo-Lease program as sales-type and operating leases. The net investment of our lease receivables is measured at the commencement date as the present value of the lease payments not yet received. As of September 30, 2021 and December 31, 2020, our short-term net investment in sales type leases was $7.6 and $0.2, respectively and is included in other current assets. Our long-term net investment in sales type leases was $26.5 and $0.5 and is included in other assets in our condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020. For sales type leases, interest income was $0.3 and $0.5 in the condensed consolidated statements of income for the three and nine months ended September 30, 2021, respectively. Operating leases are reported as equipment leased to others within property, plant, and equipment, net in our condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020. Operating leases offered by Chart may include early termination options. At the end of a lease, a lessee generally has the option to either extend the lease, purchase the underlying equipment for a fixed price or return it to Chart. The lease agreements clearly define applicable return conditions and remedies for non-compliance to ensure that leased equipment will be in good operating condition upon return. The following table represents sales from sales-type and operating leases:
| Three Months Ended September 30, 2021 |  | Nine Months Ended September 30, 2021
Sales-type leases | $ | 13.0 |  |  | $ | 36.2 |
Operating leases | 0.7 |  |  | 1.7 |
Total sales from leases | $ | 13.7 |  |  | $ | 37.9 |
Sales from sales-type and operating leases are presented net of sales tax and other related taxes. Interest income is recognized over the lease term using the effective interest method. The following table represents scheduled payments for sales-type leases:
| September 30, 2021
Remainder of 2021 | $ | 1.7 |
2022 | 7.8 |
2023 | 7.8 |
2024 | 7.8 |
2025 | 7.8 |
Thereafter | 6.5 |
Total | 39.4 |
Less: unearned income | 5.3 |
Total | $ | 34.1 |
Lease payments from operating leases are recorded as income on a straight-line basis over the lease term. Operating lease assets are recorded at cost and depreciated based on their useful lives on a straight-line basis. The following table represents the cost of equipment leased to others:
| September 30, 2021 |  | December 31, 2020
Equipment leased to others, cost | $ | 12.0 |  |  | $ | 5.1 |
Less: accumulated depreciation | 2.0 |  |  | 1.4 |
Equipment leased to others, net | $ | 10.0 |  |  | $ | 3.7 |
The following table represents payments due for operating leases:
| September 30, 2021
Remainder of 2021 | $ | 0.3 |
2022 | 0.4 |
2023 | 0.2 |
2024 | 0.2 |
2025 | 0.1 |
Thereafter | 0.1 |
Total | $ | 1.3 |

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