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Leases | 9 Months Ended
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Sep. 30, 2022
Leases [Abstract] |
Leases | Leases Lessee Accounting As of September 30, 2022 and December 31, 2021, operating right-of-use (“ROU”) assets and lease liabilities were $21.8 and $21.7 ($5.3 of which was current) and $27.3 and $27.2 ($5.8 of which was current), respectively. The weighted-average remaining term for lease contracts was 3.7 years at September 30, 2022, with maturity dates ranging from September 2022 to June 2031. The weighted-average discount rate was 3.1% at September 30, 2022. ROU assets are classified as property, plant and equipment, net in the condensed consolidated balance sheets. We incurred $4.7 and $3.0 of rental expense under operating leases for the three months ended September 30, 2022 and 2021, respectively, and $12.3 and $9.0 for the nine months ended September 30, 2022 and 2021, 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, 2022:
2022 | $ | 1.6 |
2023 | 6.3 |
2024 | 5.8 |
2025 | 4.8 |
2026 | 2.7 |
Thereafter (1) | 1.4 |
Total future minimum lease payments | $ | 22.6 |
_______________ (1) As of September 30, 2022, future minimum lease payments for non-cancelable operating leases for the period subsequent to 2026 relate to four leased facilities. Lessor Accounting We lease equipment manufactured by Chart primarily through our Cryo-Lease program as sales-type and operating leases. As of September 30, 2022 and December 31, 2021, our short-term net investment in sales-type leases was $13.0 and $9.3, respectively and is included in other current assets in our condensed consolidated balance sheets. Our long-term net investment in sales type leases was $39.2 and $31.9 as of September 30, 2022 and December 31, 2021, respectively, and is included in other assets in our condensed consolidated balance sheets. For sales type leases, interest income was $0.6 and $0.3 in the condensed consolidated statements of income for the three months ended September 30, 2022 and 2021, respectively, and $1.7 and $0.5 for the nine months ended September 30, 2022 and 2021, respectively. 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, |  |  |  |
| 2022 |  | 2021 |  |  |  |
Sales-type leases | $ | 7.3 |  |  | $ | 13.0 |  |  |  |  |
Operating leases | 1.0 |  |  | 0.7 |  |  |  |  |
Total sales from leases | $ | 8.3 |  |  | $ | 13.7 |  |  |  |  |
| Nine Months Ended September 30,
| 2022 |  | 2021
Sales-type leases | $ | 18.5 |  |  | $ | 36.2 |
Operating leases | 3.0 |  |  | 1.7 |
Total sales from leases | $ | 21.5 |  |  | $ | 37.9 |
The following table represents scheduled payments for sales-type leases:
| September 30, 2022
2022 | $ | 3.4 |
2023 | 13.4 |
2024 | 13.4 |
2025 | 13.4 |
2026 | 10.2 |
Thereafter | 6.5 |
Total | 60.3 |
Less: unearned income | 8.1 |
Total | $ | 52.2 |
The following table represents the cost of equipment leased to others:
| September 30, 2022 |  | December 31, 2021
Equipment leased to others, cost | $ | 14.3 |  |  | $ | 13.6 |
Less: accumulated depreciation | 2.6 |  |  | 2.1 |
Equipment leased to others, net | $ | 11.7 |  |  | $ | 11.5 |
The following table represents payments due for operating leases:
| September 30, 2022
2022 | $ | 0.3 |
2023 | 0.4 |
2024 | 0.1 |
2025 | 0.1 |
2026 | 0.1 |
Thereafter | 0.1 |
Total | $ | 1.1 |
Leases | Leases Lessee Accounting As of September 30, 2022 and December 31, 2021, operating right-of-use (“ROU”) assets and lease liabilities were $21.8 and $21.7 ($5.3 of which was current) and $27.3 and $27.2 ($5.8 of which was current), respectively. The weighted-average remaining term for lease contracts was 3.7 years at September 30, 2022, with maturity dates ranging from September 2022 to June 2031. The weighted-average discount rate was 3.1% at September 30, 2022. ROU assets are classified as property, plant and equipment, net in the condensed consolidated balance sheets. We incurred $4.7 and $3.0 of rental expense under operating leases for the three months ended September 30, 2022 and 2021, respectively, and $12.3 and $9.0 for the nine months ended September 30, 2022 and 2021, 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, 2022:
2022 | $ | 1.6 |
2023 | 6.3 |
2024 | 5.8 |
2025 | 4.8 |
2026 | 2.7 |
Thereafter (1) | 1.4 |
Total future minimum lease payments | $ | 22.6 |
_______________ (1) As of September 30, 2022, future minimum lease payments for non-cancelable operating leases for the period subsequent to 2026 relate to four leased facilities. Lessor Accounting We lease equipment manufactured by Chart primarily through our Cryo-Lease program as sales-type and operating leases. As of September 30, 2022 and December 31, 2021, our short-term net investment in sales-type leases was $13.0 and $9.3, respectively and is included in other current assets in our condensed consolidated balance sheets. Our long-term net investment in sales type leases was $39.2 and $31.9 as of September 30, 2022 and December 31, 2021, respectively, and is included in other assets in our condensed consolidated balance sheets. For sales type leases, interest income was $0.6 and $0.3 in the condensed consolidated statements of income for the three months ended September 30, 2022 and 2021, respectively, and $1.7 and $0.5 for the nine months ended September 30, 2022 and 2021, respectively. 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, |  |  |  |
| 2022 |  | 2021 |  |  |  |
Sales-type leases | $ | 7.3 |  |  | $ | 13.0 |  |  |  |  |
Operating leases | 1.0 |  |  | 0.7 |  |  |  |  |
Total sales from leases | $ | 8.3 |  |  | $ | 13.7 |  |  |  |  |
| Nine Months Ended September 30,
| 2022 |  | 2021
Sales-type leases | $ | 18.5 |  |  | $ | 36.2 |
Operating leases | 3.0 |  |  | 1.7 |
Total sales from leases | $ | 21.5 |  |  | $ | 37.9 |
The following table represents scheduled payments for sales-type leases:
| September 30, 2022
2022 | $ | 3.4 |
2023 | 13.4 |
2024 | 13.4 |
2025 | 13.4 |
2026 | 10.2 |
Thereafter | 6.5 |
Total | 60.3 |
Less: unearned income | 8.1 |
Total | $ | 52.2 |
The following table represents the cost of equipment leased to others:
| September 30, 2022 |  | December 31, 2021
Equipment leased to others, cost | $ | 14.3 |  |  | $ | 13.6 |
Less: accumulated depreciation | 2.6 |  |  | 2.1 |
Equipment leased to others, net | $ | 11.7 |  |  | $ | 11.5 |
The following table represents payments due for operating leases:
| September 30, 2022
2022 | $ | 0.3 |
2023 | 0.4 |
2024 | 0.1 |
2025 | 0.1 |
2026 | 0.1 |
Thereafter | 0.1 |
Total | $ | 1.1 |
Leases | Leases Lessee Accounting As of September 30, 2022 and December 31, 2021, operating right-of-use (“ROU”) assets and lease liabilities were $21.8 and $21.7 ($5.3 of which was current) and $27.3 and $27.2 ($5.8 of which was current), respectively. The weighted-average remaining term for lease contracts was 3.7 years at September 30, 2022, with maturity dates ranging from September 2022 to June 2031. The weighted-average discount rate was 3.1% at September 30, 2022. ROU assets are classified as property, plant and equipment, net in the condensed consolidated balance sheets. We incurred $4.7 and $3.0 of rental expense under operating leases for the three months ended September 30, 2022 and 2021, respectively, and $12.3 and $9.0 for the nine months ended September 30, 2022 and 2021, 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, 2022:
2022 | $ | 1.6 |
2023 | 6.3 |
2024 | 5.8 |
2025 | 4.8 |
2026 | 2.7 |
Thereafter (1) | 1.4 |
Total future minimum lease payments | $ | 22.6 |
_______________ (1) As of September 30, 2022, future minimum lease payments for non-cancelable operating leases for the period subsequent to 2026 relate to four leased facilities. Lessor Accounting We lease equipment manufactured by Chart primarily through our Cryo-Lease program as sales-type and operating leases. As of September 30, 2022 and December 31, 2021, our short-term net investment in sales-type leases was $13.0 and $9.3, respectively and is included in other current assets in our condensed consolidated balance sheets. Our long-term net investment in sales type leases was $39.2 and $31.9 as of September 30, 2022 and December 31, 2021, respectively, and is included in other assets in our condensed consolidated balance sheets. For sales type leases, interest income was $0.6 and $0.3 in the condensed consolidated statements of income for the three months ended September 30, 2022 and 2021, respectively, and $1.7 and $0.5 for the nine months ended September 30, 2022 and 2021, respectively. 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, |  |  |  |
| 2022 |  | 2021 |  |  |  |
Sales-type leases | $ | 7.3 |  |  | $ | 13.0 |  |  |  |  |
Operating leases | 1.0 |  |  | 0.7 |  |  |  |  |
Total sales from leases | $ | 8.3 |  |  | $ | 13.7 |  |  |  |  |
| Nine Months Ended September 30,
| 2022 |  | 2021
Sales-type leases | $ | 18.5 |  |  | $ | 36.2 |
Operating leases | 3.0 |  |  | 1.7 |
Total sales from leases | $ | 21.5 |  |  | $ | 37.9 |
The following table represents scheduled payments for sales-type leases:
| September 30, 2022
2022 | $ | 3.4 |
2023 | 13.4 |
2024 | 13.4 |
2025 | 13.4 |
2026 | 10.2 |
Thereafter | 6.5 |
Total | 60.3 |
Less: unearned income | 8.1 |
Total | $ | 52.2 |
The following table represents the cost of equipment leased to others:
| September 30, 2022 |  | December 31, 2021
Equipment leased to others, cost | $ | 14.3 |  |  | $ | 13.6 |
Less: accumulated depreciation | 2.6 |  |  | 2.1 |
Equipment leased to others, net | $ | 11.7 |  |  | $ | 11.5 |
The following table represents payments due for operating leases:
| September 30, 2022
2022 | $ | 0.3 |
2023 | 0.4 |
2024 | 0.1 |
2025 | 0.1 |
2026 | 0.1 |
Thereafter | 0.1 |
Total | $ | 1.1 |

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