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Lease Obligations | 3 Months Ended
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Mar. 31, 2023
Leases [Abstract] |
Lease Obligations | Lease Obligations From time to time, the Company enters into non-cancelable leases for some of our facility, vehicle and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from one to seven years, some of which may include options to extend the leases for up to five years, and some of which may include options to terminate the leases within one year. Currently, all the Company’s leases contain fixed payment terms. The Company may decide to cancel or terminate a lease before the end of its term, in which case we are typically liable to the lessor for the remaining lease payments under the term of the lease. Additionally, all of the Company's month-to-month leases are cancelable, by the Company or the lessor, at any time and are not included in our right-of-use asset or liability. At March 31, 2023, the Company had several leases with residual value guarantees. Typically, the Company has purchase options on the equipment underlying its long-term leases and many of its short-term rental arrangements. The Company may exercise some of these purchase options when the need for equipment is ongoing and the purchase option price is attractive. Leases are accounted for as operating or finance leases, depending on the terms of the lease. The following is a summary of the lease-related assets and liabilities recorded:
|  |  |  | March 31, 2023 |  | December 31, 2022
(in thousands) |  | Classification on the Consolidated Balance Sheet |  |
Assets |  |  |  |  |  |
Operating lease right-of-use assets |  | Operating lease right-of-use assets |  | $ | 29,437 |  |  | $ | 30,544 |
Finance lease right-of-use assets |  | Property and equipment, net of accumulated depreciation |  | 2,919 |  |  | 3,238 |
Total right-of-use lease assets |  |  |  | $ | 32,356 |  |  | $ | 33,782 |
Liabilities |  |  |  |  |  |
Current |  |  |  |  |  |
Operating lease obligations |  | Current portion of operating lease obligations |  | $ | 10,010 |  |  | $ | 9,711 |
Finance lease obligations |  | Current portion of finance lease obligations |  | 1,105 |  |  | 1,127 |
Total current obligations |  |  |  | 11,115 |  |  | 10,838 |
Non-current |  |  |  |  |  |
Operating lease obligations |  | Operating lease obligations, net of current maturities |  | 19,435 |  |  | 20,845 |
Finance lease obligations |  | Finance lease obligations, net of current maturities |  | 2,039 |  |  | 2,313 |
Total non-current obligations |  |  |  | 21,474 |  |  | 23,158 |
Total lease obligations |  |  |  | $ | 32,589 |  |  | $ | 33,996 |
The following is a summary of the lease terms and discount rates:
| March 31, 2023 |  | December 31, 2022
Weighted-average remaining lease term - finance leases | 1.7 years |  | 1.9 years
Weighted-average remaining lease term - operating leases | 3.5 years |  | 3.6 years
Weighted-average discount rate - finance leases | 3.0 | % |  | 3.0 | %
Weighted-average discount rate - operating leases | 3.8 | % |  | 3.8 | %
The following is a summary of certain information related to the lease costs for finance and operating leases:
(in thousands) |  | Three months ended March 31, |  |
|  | 2023 |  | 2022 |  |  |  |
Lease cost: |  |  |  |  |  |  |  |
Finance lease cost: |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  | $ | 1,206 |  |  | $ | 609 |  |  |  |  |
Interest on lease liabilities |  | 24 |  |  | 28 |  |  |  |  |
Operating lease cost |  | 3,590 |  |  | 3,122 |  |  |  |  |
Variable lease costs |  | 89 |  |  | 91 |  |  |  |  |
Total lease cost |  | $ | 4,909 |  |  | $ | 3,850 |  |  |  |  |
The following is a summary of other information and supplemental cash flow information related to finance and operating leases:
|  | Three months ended March 31,
(in thousands) |  | 2023 |  | 2022
Other information: |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |
Operating cash flows from operating leases |  | $ | 3,616 |  |  | $ | 3,179 |
Right-of-use asset obtained in exchange for new operating lease obligations |  | $ | 1,616 |  |  | $ | 4,392 |
The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets, under financial leases, less interest, and under operating leases, less imputed interest, as of March 31, 2023 were as follows:
(in thousands) |  | Finance Lease Obligations |  | Operating Lease Obligations |  | Total Lease Obligations
Remainder of 2023 |  | $ | 889 |  |  | $ | 9,997 |  |  | $ | 10,886 |
2024 |  | 2,044 |  |  | 9,663 |  |  | 11,707 |
2025 |  | 316 |  |  | 7,019 |  |  | 7,335 |
2026 |  | — |  |  | 5,359 |  |  | 5,359 |
2027 |  | — |  |  | 1,626 |  |  | 1,626 |
2028 |  | — |  |  | 1,127 |  |  | 1,127 |
Thereafter |  | — |  |  | 1,787 |  |  | 1,787 |
Total minimum lease payments |  | 3,249 |  |  | 36,578 |  |  | 39,827 |
Financing component |  | (105) |  |  | (7,133) |  |  | (7,238) |
Net present value of minimum lease payments |  | 3,144 |  |  | 29,445 |  |  | 32,589 |
Less: current portion of finance and operating lease obligations |  | (1,105) |  |  | (10,010) |  |  | (11,115) |
Long-term finance and operating lease obligations |  | $ | 2,039 |  |  | $ | 19,435 |  |  | $ | 21,474 |
The financing component for finance lease obligations represents the interest component of finance leases that will be recognized as interest expense in future periods. The financing component for operating lease obligations represents the effect of discounting the lease payments to their present value. Certain subsidiaries of the Company have operating leases for facilities from third party companies that are owned, in whole or part, by employees of the subsidiaries. The terms and rental rates of these leases are at or below market rental rates. As of March 31, 2023, the minimum lease payments required under these leases totaled $6.4 million, which are due over the next 3.8 years.
Lease Obligations | Lease Obligations From time to time, the Company enters into non-cancelable leases for some of our facility, vehicle and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from one to seven years, some of which may include options to extend the leases for up to five years, and some of which may include options to terminate the leases within one year. Currently, all the Company’s leases contain fixed payment terms. The Company may decide to cancel or terminate a lease before the end of its term, in which case we are typically liable to the lessor for the remaining lease payments under the term of the lease. Additionally, all of the Company's month-to-month leases are cancelable, by the Company or the lessor, at any time and are not included in our right-of-use asset or liability. At March 31, 2023, the Company had several leases with residual value guarantees. Typically, the Company has purchase options on the equipment underlying its long-term leases and many of its short-term rental arrangements. The Company may exercise some of these purchase options when the need for equipment is ongoing and the purchase option price is attractive. Leases are accounted for as operating or finance leases, depending on the terms of the lease. The following is a summary of the lease-related assets and liabilities recorded:
|  |  |  | March 31, 2023 |  | December 31, 2022
(in thousands) |  | Classification on the Consolidated Balance Sheet |  |
Assets |  |  |  |  |  |
Operating lease right-of-use assets |  | Operating lease right-of-use assets |  | $ | 29,437 |  |  | $ | 30,544 |
Finance lease right-of-use assets |  | Property and equipment, net of accumulated depreciation |  | 2,919 |  |  | 3,238 |
Total right-of-use lease assets |  |  |  | $ | 32,356 |  |  | $ | 33,782 |
Liabilities |  |  |  |  |  |
Current |  |  |  |  |  |
Operating lease obligations |  | Current portion of operating lease obligations |  | $ | 10,010 |  |  | $ | 9,711 |
Finance lease obligations |  | Current portion of finance lease obligations |  | 1,105 |  |  | 1,127 |
Total current obligations |  |  |  | 11,115 |  |  | 10,838 |
Non-current |  |  |  |  |  |
Operating lease obligations |  | Operating lease obligations, net of current maturities |  | 19,435 |  |  | 20,845 |
Finance lease obligations |  | Finance lease obligations, net of current maturities |  | 2,039 |  |  | 2,313 |
Total non-current obligations |  |  |  | 21,474 |  |  | 23,158 |
Total lease obligations |  |  |  | $ | 32,589 |  |  | $ | 33,996 |
The following is a summary of the lease terms and discount rates:
| March 31, 2023 |  | December 31, 2022
Weighted-average remaining lease term - finance leases | 1.7 years |  | 1.9 years
Weighted-average remaining lease term - operating leases | 3.5 years |  | 3.6 years
Weighted-average discount rate - finance leases | 3.0 | % |  | 3.0 | %
Weighted-average discount rate - operating leases | 3.8 | % |  | 3.8 | %
The following is a summary of certain information related to the lease costs for finance and operating leases:
(in thousands) |  | Three months ended March 31, |  |
|  | 2023 |  | 2022 |  |  |  |
Lease cost: |  |  |  |  |  |  |  |
Finance lease cost: |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  | $ | 1,206 |  |  | $ | 609 |  |  |  |  |
Interest on lease liabilities |  | 24 |  |  | 28 |  |  |  |  |
Operating lease cost |  | 3,590 |  |  | 3,122 |  |  |  |  |
Variable lease costs |  | 89 |  |  | 91 |  |  |  |  |
Total lease cost |  | $ | 4,909 |  |  | $ | 3,850 |  |  |  |  |
The following is a summary of other information and supplemental cash flow information related to finance and operating leases:
|  | Three months ended March 31,
(in thousands) |  | 2023 |  | 2022
Other information: |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |
Operating cash flows from operating leases |  | $ | 3,616 |  |  | $ | 3,179 |
Right-of-use asset obtained in exchange for new operating lease obligations |  | $ | 1,616 |  |  | $ | 4,392 |
The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets, under financial leases, less interest, and under operating leases, less imputed interest, as of March 31, 2023 were as follows:
(in thousands) |  | Finance Lease Obligations |  | Operating Lease Obligations |  | Total Lease Obligations
Remainder of 2023 |  | $ | 889 |  |  | $ | 9,997 |  |  | $ | 10,886 |
2024 |  | 2,044 |  |  | 9,663 |  |  | 11,707 |
2025 |  | 316 |  |  | 7,019 |  |  | 7,335 |
2026 |  | — |  |  | 5,359 |  |  | 5,359 |
2027 |  | — |  |  | 1,626 |  |  | 1,626 |
2028 |  | — |  |  | 1,127 |  |  | 1,127 |
Thereafter |  | — |  |  | 1,787 |  |  | 1,787 |
Total minimum lease payments |  | 3,249 |  |  | 36,578 |  |  | 39,827 |
Financing component |  | (105) |  |  | (7,133) |  |  | (7,238) |
Net present value of minimum lease payments |  | 3,144 |  |  | 29,445 |  |  | 32,589 |
Less: current portion of finance and operating lease obligations |  | (1,105) |  |  | (10,010) |  |  | (11,115) |
Long-term finance and operating lease obligations |  | $ | 2,039 |  |  | $ | 19,435 |  |  | $ | 21,474 |
The financing component for finance lease obligations represents the interest component of finance leases that will be recognized as interest expense in future periods. The financing component for operating lease obligations represents the effect of discounting the lease payments to their present value. Certain subsidiaries of the Company have operating leases for facilities from third party companies that are owned, in whole or part, by employees of the subsidiaries. The terms and rental rates of these leases are at or below market rental rates. As of March 31, 2023, the minimum lease payments required under these leases totaled $6.4 million, which are due over the next 3.8 years.

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
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- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
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