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Leases | 12 Months Ended
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Dec. 31, 2023
Leases [Abstract] |
Lessee, Operating Leases | LEASES We have operating leases for some of our transportation equipment, office space, warehouse space, operating locations, and machinery and equipment. We have finance leases for certain facility storage tanks and equipment rentals. Our leases have remaining lease terms ranging from 1 to 11 years. Some of our leases have options to extend for various periods, while some have termination options with prior notice of generally 30 days or six months. The office space, warehouse space, operating location leases, and machinery and equipment leases generally require us to pay all maintenance and insurance costs. Our corporate headquarters facility located in The Woodlands, Texas, was sold on December 31, 2012, pursuant to a sale and leaseback transaction. As a condition to the completion of the purchase and sale of the facility, the parties entered into a lease agreement for the facility having an initial lease term of 15 years, which is classified as an operating lease. Under the terms of the lease agreement, we have the ability to extend the lease for five successive five-year periods at base rental rates to be determined at the time of each extension. Components of lease expense, included in either cost of revenues or general and administrative expense based on the use of the underlying asset, are as follows (inclusive of lease expense for leases not included on our consolidated balance sheet based on our accounting policy election to exclude leases with a term of 12 months or less):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (In Thousands)
Operating lease expense | $ | 13,053 |  |  | $ | 12,603 |  |  | $ | 12,905 |
Short-term lease expense | 46,566 |  |  | 39,890 |  |  | 22,055 |
Finance lease cost: |  |  |  |  |
Amortization of right-of-use assets | 232 |  |  | 177 |  |  | — |
Interest on finance leases | 112 |  |  | 135 |  |  | — |
Total lease expense | $ | 59,963 |  |  | $ | 52,805 |  |  | $ | 34,960 |
Supplemental cash flow information:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (In Thousands)
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows - operating leases | $ | 13,293 |  |  | $ | 12,889 |  |  | $ | 12,962 |
Operating cash flows - finance leases | $ | 112 |  |  | $ | 135 |  |  | $ | — |
Financing cash flows - finance leases | $ | 1,695 |  |  | $ | 1,302 |  |  | $ | — |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |
Operating leases | $ | 10,058 |  |  | $ | 5,524 |  |  | $ | 5,612 |
Finance leases | $ | 2,555 |  |  | $ | 3,261 |  |  | $ | — |
Supplemental balance sheet information:
| December 31, 2023 |  | December 31, 2022
| (In Thousands)
Operating leases: |  |  |
Operating lease right-of-use assets | $ | 31,915 |  |  | $ | 33,818 |
Operating lease liabilities, current portion | 9,101 |  |  | 7,795 |
Operating lease liabilities | 27,538 |  |  | 28,108 |
Total operating lease liabilities | $ | 36,639 |  |  | $ | 35,903 |
Finance leases: |  |  |
Finance lease right-of-use assets | $ | 2,494 |  |  | $ | 2,834 |
Finance lease liabilities, current portion | 828 |  |  | 1,332 |
Finance lease liabilities | 1,828 |  |  | 464 |
Total finance lease liabilities | $ | 2,656 |  |  | $ | 1,796 |
Additional operating lease information:
| December 31, 2023 |  | December 31, 2022
Weighted average remaining lease term: |  |  |
Operating leases | 5.0 years |  | 5.8 years
Finance leases | 2.5 years |  | 1.3 years
Weighted average discount rate: |  |  |
Operating leases | 9.7 | % |  | 9.7 | %
Finance leases | 9.3 | % |  | 9.3 | %
Future minimum lease payments by year and in the aggregate, under non-cancelable operating and finance leases with terms in excess of one year consist of the following at December 31, 2023:
|  |  |  | Operating Leases |  | Finance Leases
|  |  |  | (In Thousands)
2024 |  |  |  | $ | 11,788 |  |  | $ | 1,040 |
2025 |  |  |  | 9,383 |  |  | 1,615 |
2026 |  |  |  | 8,899 |  |  | 144 |
2027 |  |  |  | 7,812 |  |  | 142 |
2028 |  |  |  | 2,293 |  |  | 92 |
Thereafter |  |  |  | 6,590 |  |  | 15 |
Total lease payments |  |  |  | 46,765 |  |  | 3,048 |
Less imputed interest |  |  |  | (10,126) |  |  | (392) |
Total lease liabilities |  |  |  | $ | 36,639 |  |  | $ | 2,656 |
The Company has subleases for a portion of its corporate headquarters facility and a facility in Europe. The leases and subleases are considered operating leases. For the years ended December 31, 2023, 2022, and 2021, we recognized sublease income of $1.2 million, $1.4 million, and $1.0 million, respectively. Future minimum sublease payments under non-cancelable subleases for two of our facilities were as follows at December 31, 2023:
|  | Sublease Payments
|  | (In Thousands)
2024 |  | $ | 1,376 |
2025 |  | 1,616 |
2026 |  | 1,415 |
2027 |  | 1,377 |
2028 |  | 923 |
Thereafter |  | 4,158 |
Total sublease payments |  | $ | 10,865 |
Lessee, Finance Leases | LEASES We have operating leases for some of our transportation equipment, office space, warehouse space, operating locations, and machinery and equipment. We have finance leases for certain facility storage tanks and equipment rentals. Our leases have remaining lease terms ranging from 1 to 11 years. Some of our leases have options to extend for various periods, while some have termination options with prior notice of generally 30 days or six months. The office space, warehouse space, operating location leases, and machinery and equipment leases generally require us to pay all maintenance and insurance costs. Our corporate headquarters facility located in The Woodlands, Texas, was sold on December 31, 2012, pursuant to a sale and leaseback transaction. As a condition to the completion of the purchase and sale of the facility, the parties entered into a lease agreement for the facility having an initial lease term of 15 years, which is classified as an operating lease. Under the terms of the lease agreement, we have the ability to extend the lease for five successive five-year periods at base rental rates to be determined at the time of each extension. Components of lease expense, included in either cost of revenues or general and administrative expense based on the use of the underlying asset, are as follows (inclusive of lease expense for leases not included on our consolidated balance sheet based on our accounting policy election to exclude leases with a term of 12 months or less):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (In Thousands)
Operating lease expense | $ | 13,053 |  |  | $ | 12,603 |  |  | $ | 12,905 |
Short-term lease expense | 46,566 |  |  | 39,890 |  |  | 22,055 |
Finance lease cost: |  |  |  |  |
Amortization of right-of-use assets | 232 |  |  | 177 |  |  | — |
Interest on finance leases | 112 |  |  | 135 |  |  | — |
Total lease expense | $ | 59,963 |  |  | $ | 52,805 |  |  | $ | 34,960 |
Supplemental cash flow information:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (In Thousands)
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows - operating leases | $ | 13,293 |  |  | $ | 12,889 |  |  | $ | 12,962 |
Operating cash flows - finance leases | $ | 112 |  |  | $ | 135 |  |  | $ | — |
Financing cash flows - finance leases | $ | 1,695 |  |  | $ | 1,302 |  |  | $ | — |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |
Operating leases | $ | 10,058 |  |  | $ | 5,524 |  |  | $ | 5,612 |
Finance leases | $ | 2,555 |  |  | $ | 3,261 |  |  | $ | — |
Supplemental balance sheet information:
| December 31, 2023 |  | December 31, 2022
| (In Thousands)
Operating leases: |  |  |
Operating lease right-of-use assets | $ | 31,915 |  |  | $ | 33,818 |
Operating lease liabilities, current portion | 9,101 |  |  | 7,795 |
Operating lease liabilities | 27,538 |  |  | 28,108 |
Total operating lease liabilities | $ | 36,639 |  |  | $ | 35,903 |
Finance leases: |  |  |
Finance lease right-of-use assets | $ | 2,494 |  |  | $ | 2,834 |
Finance lease liabilities, current portion | 828 |  |  | 1,332 |
Finance lease liabilities | 1,828 |  |  | 464 |
Total finance lease liabilities | $ | 2,656 |  |  | $ | 1,796 |
Additional operating lease information:
| December 31, 2023 |  | December 31, 2022
Weighted average remaining lease term: |  |  |
Operating leases | 5.0 years |  | 5.8 years
Finance leases | 2.5 years |  | 1.3 years
Weighted average discount rate: |  |  |
Operating leases | 9.7 | % |  | 9.7 | %
Finance leases | 9.3 | % |  | 9.3 | %
Future minimum lease payments by year and in the aggregate, under non-cancelable operating and finance leases with terms in excess of one year consist of the following at December 31, 2023:
|  |  |  | Operating Leases |  | Finance Leases
|  |  |  | (In Thousands)
2024 |  |  |  | $ | 11,788 |  |  | $ | 1,040 |
2025 |  |  |  | 9,383 |  |  | 1,615 |
2026 |  |  |  | 8,899 |  |  | 144 |
2027 |  |  |  | 7,812 |  |  | 142 |
2028 |  |  |  | 2,293 |  |  | 92 |
Thereafter |  |  |  | 6,590 |  |  | 15 |
Total lease payments |  |  |  | 46,765 |  |  | 3,048 |
Less imputed interest |  |  |  | (10,126) |  |  | (392) |
Total lease liabilities |  |  |  | $ | 36,639 |  |  | $ | 2,656 |
The Company has subleases for a portion of its corporate headquarters facility and a facility in Europe. The leases and subleases are considered operating leases. For the years ended December 31, 2023, 2022, and 2021, we recognized sublease income of $1.2 million, $1.4 million, and $1.0 million, respectively. Future minimum sublease payments under non-cancelable subleases for two of our facilities were as follows at December 31, 2023:
|  | Sublease Payments
|  | (In Thousands)
2024 |  | $ | 1,376 |
2025 |  | 1,616 |
2026 |  | 1,415 |
2027 |  | 1,377 |
2028 |  | 923 |
Thereafter |  | 4,158 |
Total sublease payments |  | $ | 10,865 |

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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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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