XML 59 R18.htm IDEA: XBRL DOCUMENT v3.24.1
Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases
Note K – Leases
The Company has entered into and acquired long-term leasing arrangements for the right to use various classes of underlying assets, including facilities, vehicles and office equipment. Certain facility leases contain predetermined fixed escalation of minimum rents at stated rates ranging from 2.00% to 4.00% per annum and three leases with annual escalations based on certain price indices. In addition, certain facility leases include renewal options that could extend the lease term for up to an additional ten years. The office equipment lease contains a renewal option that could extend the lease to consecutive 60-day terms and a purchase option.
Total Lease Costs
The following table summarizes total lease costs for the period:
Year Ended
December 31, 2023December 31, 2022
Finance lease cost:
Amortization of ROU assets$434 $54 
Interest on lease liabilities98 6 
Operating lease costs4,251 3,339 
Variable lease costs29 — 
Short-term lease costs230 251 
Total lease costs$5,042 $3,650 
Total lease costs are included in selling, general and administrative expenses and cost of sales on the consolidated statements of operations and comprehensive income (loss).

There was no impairment recognized related to ROU assets during the year ended December 31, 2023. During the year ended December 31, 2022, the Company recognized impairment expense of $96.6 million, of which $2.7 million related to certain ROU assets within the Mission Solutions reporting unit. Please refer to Note T – Impairment Expense for additional information related to this impairment.

Supplemental Balance Sheet Information
The following table presents supplemental balance sheet information related to the Company’s operating and finance leases:
December 31, 2023December 31, 2022
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Right-of-use assets, net reflected in the following balance sheet line items:
Property, plant and equipment, net
$— $1,551 $— $899 
Right-of-use assets13,181 — 13,103 — 
Total right-of-use assets
$13,181 $1,551 $13,103 $899 
Current lease balance reflected in the following balance sheet line items:
Short-term operating lease liabilities$3,737 $— $3,214 $— 
Short-term finance lease liabilities— 439 — 299 
Non-current lease balance reflected in the following balance sheet line items:
Long-term operating lease liabilities12,302 — 12,670 — 
Long-term finance lease liabilities— 1,137 — 579 
Total lease liabilities$16,039 $1,576 $15,884 $878 
Other Supplemental Information
The following table presents other supplemental information related to the Company’s leases:
Year Ended
December 31, 2023December 31, 2022
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Cash paid for lease liabilities$4,273 $492 $3,076 $61 
Right-of-use assets obtained in exchange for new lease liabilities3,418 1,167 8,615 944 
Weighted average remaining lease term (in years)4.43.84.83.1
Weighted average discount rate6.3 %8.4 %5.6 %9.3 %

Future Lease Obligations
As of December 31, 2023, the future annual minimum lease payments for lease liabilities are as follows:
YearOperating LeasesFinance Leases
2024$4,582 $564 
20254,098 479 
20263,509 363 
20273,371 289 
20281,852 136 
Thereafter
1,572 — 
Total lease payments
18,984 1,831 
Less: imputed interest2,945 255 
Present value of lease liabilities
$16,039 $1,576 
Leases
Note K – Leases
The Company has entered into and acquired long-term leasing arrangements for the right to use various classes of underlying assets, including facilities, vehicles and office equipment. Certain facility leases contain predetermined fixed escalation of minimum rents at stated rates ranging from 2.00% to 4.00% per annum and three leases with annual escalations based on certain price indices. In addition, certain facility leases include renewal options that could extend the lease term for up to an additional ten years. The office equipment lease contains a renewal option that could extend the lease to consecutive 60-day terms and a purchase option.
Total Lease Costs
The following table summarizes total lease costs for the period:
Year Ended
December 31, 2023December 31, 2022
Finance lease cost:
Amortization of ROU assets$434 $54 
Interest on lease liabilities98 6 
Operating lease costs4,251 3,339 
Variable lease costs29 — 
Short-term lease costs230 251 
Total lease costs$5,042 $3,650 
Total lease costs are included in selling, general and administrative expenses and cost of sales on the consolidated statements of operations and comprehensive income (loss).

There was no impairment recognized related to ROU assets during the year ended December 31, 2023. During the year ended December 31, 2022, the Company recognized impairment expense of $96.6 million, of which $2.7 million related to certain ROU assets within the Mission Solutions reporting unit. Please refer to Note T – Impairment Expense for additional information related to this impairment.

Supplemental Balance Sheet Information
The following table presents supplemental balance sheet information related to the Company’s operating and finance leases:
December 31, 2023December 31, 2022
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Right-of-use assets, net reflected in the following balance sheet line items:
Property, plant and equipment, net
$— $1,551 $— $899 
Right-of-use assets13,181 — 13,103 — 
Total right-of-use assets
$13,181 $1,551 $13,103 $899 
Current lease balance reflected in the following balance sheet line items:
Short-term operating lease liabilities$3,737 $— $3,214 $— 
Short-term finance lease liabilities— 439 — 299 
Non-current lease balance reflected in the following balance sheet line items:
Long-term operating lease liabilities12,302 — 12,670 — 
Long-term finance lease liabilities— 1,137 — 579 
Total lease liabilities$16,039 $1,576 $15,884 $878 
Other Supplemental Information
The following table presents other supplemental information related to the Company’s leases:
Year Ended
December 31, 2023December 31, 2022
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Cash paid for lease liabilities$4,273 $492 $3,076 $61 
Right-of-use assets obtained in exchange for new lease liabilities3,418 1,167 8,615 944 
Weighted average remaining lease term (in years)4.43.84.83.1
Weighted average discount rate6.3 %8.4 %5.6 %9.3 %

Future Lease Obligations
As of December 31, 2023, the future annual minimum lease payments for lease liabilities are as follows:
YearOperating LeasesFinance Leases
2024$4,582 $564 
20254,098 479 
20263,509 363 
20273,371 289 
20281,852 136 
Thereafter
1,572 — 
Total lease payments
18,984 1,831 
Less: imputed interest2,945 255 
Present value of lease liabilities
$16,039 $1,576