XML 23 R14.htm IDEA: XBRL DOCUMENT v3.23.3
Leases
 9 Months Ended
Sep. 30, 2023
Leases [Abstract]  
LEASES LEASESThe table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
September 30, 2023December 31, 2022
Operating Leases:
Operating lease assets$52,857 $38,224 
Current portions of operating lease liabilities$12,703 $5,829 
Long-term portions of operating lease liabilities38,806 31,703 
Total operating lease liabilities$51,509 $37,532 
Weighted-average remaining lease term19 years13 years
Weighted-average discount rate6.4 %6.0 %
Financing Leases:
Energy assets$27,788 $29,365 
Current portions of financing lease liabilities$1,706 $1,992 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs13,421 14,068 
Total financing lease liabilities$15,127 $16,060 
Weighted-average remaining lease term13 years14 years
Weighted-average discount rate12.1 %12.1 %
The costs related to our leases were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Operating Leases:
Operating lease costs$2,692 $1,890 $7,128 $6,244 
Financing Leases:
Amortization expense526 691 1,577 1,578 
Interest on lease liabilities485 525 1,362 1,620 
Total lease costs$3,703 $3,106 $10,067 $9,442 

Supplemental cash flow information related to our leases was as follows:
Nine Months Ended September 30,
20232022
Cash paid for amounts included in the measurement of operating lease liabilities$5,975 $5,948 
Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities (1)
$19,255 $2,960 
(1) Includes non-monetary lease transactions of $14,249. See disclosure below for additional information.
The table below sets forth our estimated minimum future lease obligations under our leases:
 Operating LeasesFinancing Leases
Year ended December 31, 
2023$3,134 $1,741 
202415,166 2,565 
202510,174 2,213 
20264,474 2,054 
20273,460 1,922 
Thereafter37,145 17,891 
Total minimum lease payments73,553 28,386 
Less: interest22,044 13,259 
Present value of lease liabilities$51,509 $15,127 
We have a future lease commitment for a ground lease which does not yet meet the criteria for recording a ROU asset or ROU liability. The net present value of this commitment totals $10,500 as of September 30, 2023 and relates to lease payments to be made over a 20-year period. We are in process of modifying the terms of this agreement such that the criteria to record a ROU asset and ROU liability may not be met. We also have a future lease commitment for an office lease which does not yet meet the criteria for recording a ROU asset or ROU liability. The net present value of this commitment totals $1,354 as of September 30, 2023 and relates to lease payments to be made over a 5-year period.
Non-monetary Lease Transactions
We have two lease liabilities consisting of obligations that will be settled with non-monetary consideration. The lease liabilities relating to non-monetary consideration were recorded during the nine months ended September 30, 2023 based on the fair market value of the project services or back up power expected to be provided, as noted below.
In January 2023, a 37-year land lease commenced with the United States Navy (“Navy”), which expires in 2059. We plan to complete an In-Kind Consideration Project (“IKCP”), which the Navy will credit as consideration toward our lease obligation upon the Navy’s final acceptance of the IKCP.
In August 2023, we acquired an energy asset project and assumed the related 30-year land lease agreement with the United States Army (“Army”), which commenced in 2022 and expires in 2052. Once construction of the project is complete, we will provide backup power as a stand ready obligation as consideration toward our lease obligation. See Note 6 Energy Assets, Net for additional information.
Long-term Financing Facilities
These facilities are accounted for as failed sale leasebacks and are classified as long-term financing facilities.
August 2018 Master Sale-leaseback
We enter into amendments to our August 2018 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants.
We sold and leased back five energy assets for $91,137 in cash proceeds under this facility during the nine months ended September 30, 2023. As of September 30, 2023, a majority of the total commitment of $350,000 remained available under this lending commitment.
Net gains from amortization expense recognized in cost of revenues relating to deferred gains and losses in connection with our sale-leaseback agreements were $57 and $57 for the three months ended September 30, 2023 and 2022, respectively, and $171 and $171 for the nine months ended September 30, 2023 and 2022, respectively.
December 2020 Master Sale-leaseback
We enter into amendments to our December 2020 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants.
We sold and leased back three energy assets for $9,201 in cash proceeds under this facility during the nine months ended September 30, 2023.
LEASES LEASESThe table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
September 30, 2023December 31, 2022
Operating Leases:
Operating lease assets$52,857 $38,224 
Current portions of operating lease liabilities$12,703 $5,829 
Long-term portions of operating lease liabilities38,806 31,703 
Total operating lease liabilities$51,509 $37,532 
Weighted-average remaining lease term19 years13 years
Weighted-average discount rate6.4 %6.0 %
Financing Leases:
Energy assets$27,788 $29,365 
Current portions of financing lease liabilities$1,706 $1,992 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs13,421 14,068 
Total financing lease liabilities$15,127 $16,060 
Weighted-average remaining lease term13 years14 years
Weighted-average discount rate12.1 %12.1 %
The costs related to our leases were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Operating Leases:
Operating lease costs$2,692 $1,890 $7,128 $6,244 
Financing Leases:
Amortization expense526 691 1,577 1,578 
Interest on lease liabilities485 525 1,362 1,620 
Total lease costs$3,703 $3,106 $10,067 $9,442 

Supplemental cash flow information related to our leases was as follows:
Nine Months Ended September 30,
20232022
Cash paid for amounts included in the measurement of operating lease liabilities$5,975 $5,948 
Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities (1)
$19,255 $2,960 
(1) Includes non-monetary lease transactions of $14,249. See disclosure below for additional information.
The table below sets forth our estimated minimum future lease obligations under our leases:
 Operating LeasesFinancing Leases
Year ended December 31, 
2023$3,134 $1,741 
202415,166 2,565 
202510,174 2,213 
20264,474 2,054 
20273,460 1,922 
Thereafter37,145 17,891 
Total minimum lease payments73,553 28,386 
Less: interest22,044 13,259 
Present value of lease liabilities$51,509 $15,127 
We have a future lease commitment for a ground lease which does not yet meet the criteria for recording a ROU asset or ROU liability. The net present value of this commitment totals $10,500 as of September 30, 2023 and relates to lease payments to be made over a 20-year period. We are in process of modifying the terms of this agreement such that the criteria to record a ROU asset and ROU liability may not be met. We also have a future lease commitment for an office lease which does not yet meet the criteria for recording a ROU asset or ROU liability. The net present value of this commitment totals $1,354 as of September 30, 2023 and relates to lease payments to be made over a 5-year period.
Non-monetary Lease Transactions
We have two lease liabilities consisting of obligations that will be settled with non-monetary consideration. The lease liabilities relating to non-monetary consideration were recorded during the nine months ended September 30, 2023 based on the fair market value of the project services or back up power expected to be provided, as noted below.
In January 2023, a 37-year land lease commenced with the United States Navy (“Navy”), which expires in 2059. We plan to complete an In-Kind Consideration Project (“IKCP”), which the Navy will credit as consideration toward our lease obligation upon the Navy’s final acceptance of the IKCP.
In August 2023, we acquired an energy asset project and assumed the related 30-year land lease agreement with the United States Army (“Army”), which commenced in 2022 and expires in 2052. Once construction of the project is complete, we will provide backup power as a stand ready obligation as consideration toward our lease obligation. See Note 6 Energy Assets, Net for additional information.
Long-term Financing Facilities
These facilities are accounted for as failed sale leasebacks and are classified as long-term financing facilities.
August 2018 Master Sale-leaseback
We enter into amendments to our August 2018 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants.
We sold and leased back five energy assets for $91,137 in cash proceeds under this facility during the nine months ended September 30, 2023. As of September 30, 2023, a majority of the total commitment of $350,000 remained available under this lending commitment.
Net gains from amortization expense recognized in cost of revenues relating to deferred gains and losses in connection with our sale-leaseback agreements were $57 and $57 for the three months ended September 30, 2023 and 2022, respectively, and $171 and $171 for the nine months ended September 30, 2023 and 2022, respectively.
December 2020 Master Sale-leaseback
We enter into amendments to our December 2020 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants.
We sold and leased back three energy assets for $9,201 in cash proceeds under this facility during the nine months ended September 30, 2023.
LEASES LEASESThe table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
September 30, 2023December 31, 2022
Operating Leases:
Operating lease assets$52,857 $38,224 
Current portions of operating lease liabilities$12,703 $5,829 
Long-term portions of operating lease liabilities38,806 31,703 
Total operating lease liabilities$51,509 $37,532 
Weighted-average remaining lease term19 years13 years
Weighted-average discount rate6.4 %6.0 %
Financing Leases:
Energy assets$27,788 $29,365 
Current portions of financing lease liabilities$1,706 $1,992 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs13,421 14,068 
Total financing lease liabilities$15,127 $16,060 
Weighted-average remaining lease term13 years14 years
Weighted-average discount rate12.1 %12.1 %
The costs related to our leases were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Operating Leases:
Operating lease costs$2,692 $1,890 $7,128 $6,244 
Financing Leases:
Amortization expense526 691 1,577 1,578 
Interest on lease liabilities485 525 1,362 1,620 
Total lease costs$3,703 $3,106 $10,067 $9,442 

Supplemental cash flow information related to our leases was as follows:
Nine Months Ended September 30,
20232022
Cash paid for amounts included in the measurement of operating lease liabilities$5,975 $5,948 
Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities (1)
$19,255 $2,960 
(1) Includes non-monetary lease transactions of $14,249. See disclosure below for additional information.
The table below sets forth our estimated minimum future lease obligations under our leases:
 Operating LeasesFinancing Leases
Year ended December 31, 
2023$3,134 $1,741 
202415,166 2,565 
202510,174 2,213 
20264,474 2,054 
20273,460 1,922 
Thereafter37,145 17,891 
Total minimum lease payments73,553 28,386 
Less: interest22,044 13,259 
Present value of lease liabilities$51,509 $15,127 
We have a future lease commitment for a ground lease which does not yet meet the criteria for recording a ROU asset or ROU liability. The net present value of this commitment totals $10,500 as of September 30, 2023 and relates to lease payments to be made over a 20-year period. We are in process of modifying the terms of this agreement such that the criteria to record a ROU asset and ROU liability may not be met. We also have a future lease commitment for an office lease which does not yet meet the criteria for recording a ROU asset or ROU liability. The net present value of this commitment totals $1,354 as of September 30, 2023 and relates to lease payments to be made over a 5-year period.
Non-monetary Lease Transactions
We have two lease liabilities consisting of obligations that will be settled with non-monetary consideration. The lease liabilities relating to non-monetary consideration were recorded during the nine months ended September 30, 2023 based on the fair market value of the project services or back up power expected to be provided, as noted below.
In January 2023, a 37-year land lease commenced with the United States Navy (“Navy”), which expires in 2059. We plan to complete an In-Kind Consideration Project (“IKCP”), which the Navy will credit as consideration toward our lease obligation upon the Navy’s final acceptance of the IKCP.
In August 2023, we acquired an energy asset project and assumed the related 30-year land lease agreement with the United States Army (“Army”), which commenced in 2022 and expires in 2052. Once construction of the project is complete, we will provide backup power as a stand ready obligation as consideration toward our lease obligation. See Note 6 Energy Assets, Net for additional information.
Long-term Financing Facilities
These facilities are accounted for as failed sale leasebacks and are classified as long-term financing facilities.
August 2018 Master Sale-leaseback
We enter into amendments to our August 2018 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants.
We sold and leased back five energy assets for $91,137 in cash proceeds under this facility during the nine months ended September 30, 2023. As of September 30, 2023, a majority of the total commitment of $350,000 remained available under this lending commitment.
Net gains from amortization expense recognized in cost of revenues relating to deferred gains and losses in connection with our sale-leaseback agreements were $57 and $57 for the three months ended September 30, 2023 and 2022, respectively, and $171 and $171 for the nine months ended September 30, 2023 and 2022, respectively.
December 2020 Master Sale-leaseback
We enter into amendments to our December 2020 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants.
We sold and leased back three energy assets for $9,201 in cash proceeds under this facility during the nine months ended September 30, 2023.