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Lease Obligations
 3 Months Ended
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 assetsOperating lease right-of-use assets$29,437 $30,544 
Finance lease right-of-use assetsProperty and equipment, net of accumulated depreciation2,919 3,238 
Total right-of-use lease assets$32,356 $33,782 
Liabilities
Current
Operating lease obligationsCurrent portion of operating lease obligations$10,010 $9,711 
Finance lease obligationsCurrent portion of finance lease obligations1,105 1,127 
Total current obligations11,115 10,838 
Non-current
Operating lease obligationsOperating lease obligations, net of current maturities19,435 20,845 
Finance lease obligationsFinance lease obligations, net of current maturities2,039 2,313 
Total non-current obligations21,474 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 leases1.7 years1.9 years
Weighted-average remaining lease term - operating leases3.5 years3.6 years
Weighted-average discount rate - finance leases3.0 %3.0 %
Weighted-average discount rate - operating leases3.8 %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,
20232022
Lease cost:
Finance lease cost:
Amortization of right-of-use assets$1,206 $609 
Interest on lease liabilities24 28 
Operating lease cost3,590 3,122 
Variable lease costs89 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)20232022
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 
20242,044 9,663 11,707 
2025316 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 payments3,249 36,578 39,827 
Financing component(105)(7,133)(7,238)
Net present value of minimum lease payments3,144 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 assetsOperating lease right-of-use assets$29,437 $30,544 
Finance lease right-of-use assetsProperty and equipment, net of accumulated depreciation2,919 3,238 
Total right-of-use lease assets$32,356 $33,782 
Liabilities
Current
Operating lease obligationsCurrent portion of operating lease obligations$10,010 $9,711 
Finance lease obligationsCurrent portion of finance lease obligations1,105 1,127 
Total current obligations11,115 10,838 
Non-current
Operating lease obligationsOperating lease obligations, net of current maturities19,435 20,845 
Finance lease obligationsFinance lease obligations, net of current maturities2,039 2,313 
Total non-current obligations21,474 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 leases1.7 years1.9 years
Weighted-average remaining lease term - operating leases3.5 years3.6 years
Weighted-average discount rate - finance leases3.0 %3.0 %
Weighted-average discount rate - operating leases3.8 %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,
20232022
Lease cost:
Finance lease cost:
Amortization of right-of-use assets$1,206 $609 
Interest on lease liabilities24 28 
Operating lease cost3,590 3,122 
Variable lease costs89 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)20232022
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 
20242,044 9,663 11,707 
2025316 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 payments3,249 36,578 39,827 
Financing component(105)(7,133)(7,238)
Net present value of minimum lease payments3,144 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.