XML 24 R13.htm IDEA: XBRL DOCUMENT
v3.24.3

Leases | 9 Months Ended
--- | ---
Sep. 30, 2024
Leases [Abstract] |
Leases | Leases Lessee Accounting We lease certain office spaces, warehouses, facilities, vehicles and equipment. Our leases have maturity dates ranging from October 2024 to September 2042. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Operating lease right-of-use (“ROU”) assets are classifie d as property, plant and equipment, net in the condensed consolidated balance sheets. Finance lease ROU assets are classified as other assets in the condensed consolidated balance sheets. Operating lease liabilities are classified as operating lease liabilities, current and operating lease liabilities, non-current. Finance lease liabilities are classified as other current liabilities and other long-term liabilities in the condensed consolidated balance sheets. We incurred $6.8 and $13.8 of rental expense under operating leases for the three months ended September 30, 2024 and 2023, respectively, and $19.2 and $23.6 for the nine months ended September 30, 2024 and 2023, 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. 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 presents the lease balances within our condensed consolidated balance sheets, weighted average remaining lease term and weighted average discount rates related to our leases:
Lease Assets and Liabilities | September 30, 2024 |  | December 31, 2023
Assets |  |  |
Operating lease, net | $ | 81.2 |  |  | $ | 69.1 |
Finance lease, net | 16.0 |  |  | 16.1 |
Total lease assets | $ | 97.2 |  |  | $ | 85.2 |
Liabilities |  |  |
Current: |  |  |
Operating lease liabilities | $ | 20.4 |  |  | $ | 18.5 |
Finance lease liabilities | 2.3 |  |  | 3.0 |
Non-current: |  |  |
Operating lease liabilities | 61.7 |  |  | 50.7 |
Finance lease liabilities | 14.2 |  |  | 14.2 |
Total lease liabilities | $ | 98.6 |  |  | $ | 86.4 |
Weighted-average remaining lease terms |  |  |
Operating leases | 6.3 years |  | 5.1 years
Finance leases | 7.7 years |  | 7.9 years
Weighted-average discount rate |  |  |
Operating leases | 7.1% |  | 6.6%
Finance leases | 6.9% |  | 6.7%
Leased assets obtained in exchange for new finance and operating lease liabilities for the nine months ended September 30, 2024 were $0.1 and $20.1, respectively. The following table summarizes future minimum lease payments for non-cancelable operating leases and for finance leases as of September 30, 2024:
| Finance |  | Operating
2024 | $ | 0.9 |  |  | $ | 6.2 |
2025 | 3.0 |  |  | 23.5 |
2026 | 2.7 |  |  | 18.1 |
2027 | 2.6 |  |  | 13.2 |
2028 | 2.4 |  |  | 11.1 |
Thereafter (1) | 10.3 |  |  | 30.8 |
Total future minimum lease payments | $ | 21.9 |  |  | $ | 102.9 |
Less: Present value discount | (5.4) |  |  | (20.8) |
Lease liability | $ | 16.5 |  |  | $ | 82.1 |
_______________ (1) As of September 30, 2024, future minimum lease payments for non-cancelable operating leases for the period subsequent to 2028 relate to forty-two leased facilities. Lessor Accounting We lease equipment manufactured by Chart as sales-type and operating leases. As of September 30, 2024 and December 31, 2023, our short-term net investment in sales-type leases was $28.2 and $21.4, respectively, and is included in other current assets in our condensed consolidated balance sheets. Our long-term net investment in sales-type leases was $80.6 and $62.1 as of September 30, 2024 and December 31, 2023, respectively, and is included in other assets in our condensed consolidated balance sheets. 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, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Sales-type leases | $ | 11.5 |  |  | $ | 6.0 |  |  | $ | 36.9 |  |  | $ | 25.2 |
Operating leases | 1.7 |  |  | 1.9 |  |  | 4.8 |  |  | 4.2 |
Total sales from leases | $ | 13.2 |  |  | $ | 7.9 |  |  | $ | 41.7 |  |  | $ | 29.4 |
The following table represents scheduled payments for sales-type leases as of September 30, 2024:
2024 | $ | 6.9 |
2025 | 28.6 |
2026 | 26.5 |
2027 | 20.3 |
2028 | 17.3 |
Thereafter | 56.0 |
Total | 155.6 |
Less: unearned income | 46.8 |
Total | $ | 108.8 |
The following table represents the cost of equipment leased to others:
| September 30, 2024 |  | December 31, 2023
Equipment leased to others, cost | $ | 4.7 |  |  | $ | 20.6 |
Less: accumulated depreciation | 1.3 |  |  | 4.4 |
Equipment leased to others, net | $ | 3.4 |  |  | $ | 16.2 |
Leases | Leases Lessee Accounting We lease certain office spaces, warehouses, facilities, vehicles and equipment. Our leases have maturity dates ranging from October 2024 to September 2042. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Operating lease right-of-use (“ROU”) assets are classifie d as property, plant and equipment, net in the condensed consolidated balance sheets. Finance lease ROU assets are classified as other assets in the condensed consolidated balance sheets. Operating lease liabilities are classified as operating lease liabilities, current and operating lease liabilities, non-current. Finance lease liabilities are classified as other current liabilities and other long-term liabilities in the condensed consolidated balance sheets. We incurred $6.8 and $13.8 of rental expense under operating leases for the three months ended September 30, 2024 and 2023, respectively, and $19.2 and $23.6 for the nine months ended September 30, 2024 and 2023, 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. 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 presents the lease balances within our condensed consolidated balance sheets, weighted average remaining lease term and weighted average discount rates related to our leases:
Lease Assets and Liabilities | September 30, 2024 |  | December 31, 2023
Assets |  |  |
Operating lease, net | $ | 81.2 |  |  | $ | 69.1 |
Finance lease, net | 16.0 |  |  | 16.1 |
Total lease assets | $ | 97.2 |  |  | $ | 85.2 |
Liabilities |  |  |
Current: |  |  |
Operating lease liabilities | $ | 20.4 |  |  | $ | 18.5 |
Finance lease liabilities | 2.3 |  |  | 3.0 |
Non-current: |  |  |
Operating lease liabilities | 61.7 |  |  | 50.7 |
Finance lease liabilities | 14.2 |  |  | 14.2 |
Total lease liabilities | $ | 98.6 |  |  | $ | 86.4 |
Weighted-average remaining lease terms |  |  |
Operating leases | 6.3 years |  | 5.1 years
Finance leases | 7.7 years |  | 7.9 years
Weighted-average discount rate |  |  |
Operating leases | 7.1% |  | 6.6%
Finance leases | 6.9% |  | 6.7%
Leased assets obtained in exchange for new finance and operating lease liabilities for the nine months ended September 30, 2024 were $0.1 and $20.1, respectively. The following table summarizes future minimum lease payments for non-cancelable operating leases and for finance leases as of September 30, 2024:
| Finance |  | Operating
2024 | $ | 0.9 |  |  | $ | 6.2 |
2025 | 3.0 |  |  | 23.5 |
2026 | 2.7 |  |  | 18.1 |
2027 | 2.6 |  |  | 13.2 |
2028 | 2.4 |  |  | 11.1 |
Thereafter (1) | 10.3 |  |  | 30.8 |
Total future minimum lease payments | $ | 21.9 |  |  | $ | 102.9 |
Less: Present value discount | (5.4) |  |  | (20.8) |
Lease liability | $ | 16.5 |  |  | $ | 82.1 |
_______________ (1) As of September 30, 2024, future minimum lease payments for non-cancelable operating leases for the period subsequent to 2028 relate to forty-two leased facilities. Lessor Accounting We lease equipment manufactured by Chart as sales-type and operating leases. As of September 30, 2024 and December 31, 2023, our short-term net investment in sales-type leases was $28.2 and $21.4, respectively, and is included in other current assets in our condensed consolidated balance sheets. Our long-term net investment in sales-type leases was $80.6 and $62.1 as of September 30, 2024 and December 31, 2023, respectively, and is included in other assets in our condensed consolidated balance sheets. 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, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Sales-type leases | $ | 11.5 |  |  | $ | 6.0 |  |  | $ | 36.9 |  |  | $ | 25.2 |
Operating leases | 1.7 |  |  | 1.9 |  |  | 4.8 |  |  | 4.2 |
Total sales from leases | $ | 13.2 |  |  | $ | 7.9 |  |  | $ | 41.7 |  |  | $ | 29.4 |
The following table represents scheduled payments for sales-type leases as of September 30, 2024:
2024 | $ | 6.9 |
2025 | 28.6 |
2026 | 26.5 |
2027 | 20.3 |
2028 | 17.3 |
Thereafter | 56.0 |
Total | 155.6 |
Less: unearned income | 46.8 |
Total | $ | 108.8 |
The following table represents the cost of equipment leased to others:
| September 30, 2024 |  | December 31, 2023
Equipment leased to others, cost | $ | 4.7 |  |  | $ | 20.6 |
Less: accumulated depreciation | 1.3 |  |  | 4.4 |
Equipment leased to others, net | $ | 3.4 |  |  | $ | 16.2 |
Leases | Leases Lessee Accounting We lease certain office spaces, warehouses, facilities, vehicles and equipment. Our leases have maturity dates ranging from October 2024 to September 2042. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Operating lease right-of-use (“ROU”) assets are classifie d as property, plant and equipment, net in the condensed consolidated balance sheets. Finance lease ROU assets are classified as other assets in the condensed consolidated balance sheets. Operating lease liabilities are classified as operating lease liabilities, current and operating lease liabilities, non-current. Finance lease liabilities are classified as other current liabilities and other long-term liabilities in the condensed consolidated balance sheets. We incurred $6.8 and $13.8 of rental expense under operating leases for the three months ended September 30, 2024 and 2023, respectively, and $19.2 and $23.6 for the nine months ended September 30, 2024 and 2023, 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. 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 presents the lease balances within our condensed consolidated balance sheets, weighted average remaining lease term and weighted average discount rates related to our leases:
Lease Assets and Liabilities | September 30, 2024 |  | December 31, 2023
Assets |  |  |
Operating lease, net | $ | 81.2 |  |  | $ | 69.1 |
Finance lease, net | 16.0 |  |  | 16.1 |
Total lease assets | $ | 97.2 |  |  | $ | 85.2 |
Liabilities |  |  |
Current: |  |  |
Operating lease liabilities | $ | 20.4 |  |  | $ | 18.5 |
Finance lease liabilities | 2.3 |  |  | 3.0 |
Non-current: |  |  |
Operating lease liabilities | 61.7 |  |  | 50.7 |
Finance lease liabilities | 14.2 |  |  | 14.2 |
Total lease liabilities | $ | 98.6 |  |  | $ | 86.4 |
Weighted-average remaining lease terms |  |  |
Operating leases | 6.3 years |  | 5.1 years
Finance leases | 7.7 years |  | 7.9 years
Weighted-average discount rate |  |  |
Operating leases | 7.1% |  | 6.6%
Finance leases | 6.9% |  | 6.7%
Leased assets obtained in exchange for new finance and operating lease liabilities for the nine months ended September 30, 2024 were $0.1 and $20.1, respectively. The following table summarizes future minimum lease payments for non-cancelable operating leases and for finance leases as of September 30, 2024:
| Finance |  | Operating
2024 | $ | 0.9 |  |  | $ | 6.2 |
2025 | 3.0 |  |  | 23.5 |
2026 | 2.7 |  |  | 18.1 |
2027 | 2.6 |  |  | 13.2 |
2028 | 2.4 |  |  | 11.1 |
Thereafter (1) | 10.3 |  |  | 30.8 |
Total future minimum lease payments | $ | 21.9 |  |  | $ | 102.9 |
Less: Present value discount | (5.4) |  |  | (20.8) |
Lease liability | $ | 16.5 |  |  | $ | 82.1 |
_______________ (1) As of September 30, 2024, future minimum lease payments for non-cancelable operating leases for the period subsequent to 2028 relate to forty-two leased facilities. Lessor Accounting We lease equipment manufactured by Chart as sales-type and operating leases. As of September 30, 2024 and December 31, 2023, our short-term net investment in sales-type leases was $28.2 and $21.4, respectively, and is included in other current assets in our condensed consolidated balance sheets. Our long-term net investment in sales-type leases was $80.6 and $62.1 as of September 30, 2024 and December 31, 2023, respectively, and is included in other assets in our condensed consolidated balance sheets. 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, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Sales-type leases | $ | 11.5 |  |  | $ | 6.0 |  |  | $ | 36.9 |  |  | $ | 25.2 |
Operating leases | 1.7 |  |  | 1.9 |  |  | 4.8 |  |  | 4.2 |
Total sales from leases | $ | 13.2 |  |  | $ | 7.9 |  |  | $ | 41.7 |  |  | $ | 29.4 |
The following table represents scheduled payments for sales-type leases as of September 30, 2024:
2024 | $ | 6.9 |
2025 | 28.6 |
2026 | 26.5 |
2027 | 20.3 |
2028 | 17.3 |
Thereafter | 56.0 |
Total | 155.6 |
Less: unearned income | 46.8 |
Total | $ | 108.8 |
The following table represents the cost of equipment leased to others:
| September 30, 2024 |  | December 31, 2023
Equipment leased to others, cost | $ | 4.7 |  |  | $ | 20.6 |
Less: accumulated depreciation | 1.3 |  |  | 4.4 |
Equipment leased to others, net | $ | 3.4 |  |  | $ | 16.2 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of lessor's sales-type leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-30/tableOfContent + Details
Name: | us-gaap_LessorSalesTypeLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-30/tableOfContent + Details
Name: | us-gaap_OperatingLeasesOfLessorDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration