XML 46 R25.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Leases | 12 Months Ended
--- | ---
Dec. 31, 2023
Leases [Abstract] |
Leases | Leases The Company leases certain office and operating facilities, machinery, equipment, and vehicles. Concurrent with the adoption of ASC 842, the Company recognized a right-of-use (ROU) asset and lease liability based on the present value of the future lease payments over the lease term for each lease agreement. The Company elected not to recognize a ROU asset and lease liability for leases with terms of 12 months or less and will continue to recognize lease expense for these leases on a straight-line basis over the lease term. The Company has leases with both lease components and non-lease components, such as common area maintenance, utilities, or other repairs and maintenance. For all asset classes, the Company decided to utilize the practical expedient to include both fixed lease components and fixed non-lease components in calculating the ROU asset and lease liability. The Company identified variable lease payments, such as maintenance payments based on actual activities performed or costs incurred, at lease commencement by assessing the nature of the payment provisions, including whether the payments are subject to a minimum charge. Many of the Company's leases include one or more options to renew. When it is reasonably certain that the Company will exercise the option, the Company will include the impact of the option in the lease term for purposes of determining future lease payments. As the Company is unable to determine the discount rate implicit in its lease agreements, the Company uses its incremental borrowing rate on the commencement date to calculate the present value of future payments. The Company’s Consolidated Balance Sheets include the following related to operating leases as of December 31, 2023 and 2022 (in thousands):
Leases |  | Classification |  | 2023 |  | 2022
Assets: |  |  |  |  |  |
ROU assets |  | Other Assets |  | $ | 37,512 |  |  | $ | 36,946 |
Liabilities: |  |  |  |  |  |
ROU liability - current |  | Accrued expenses and other current liabilities |  | $ | 10,686 |  |  | $ | 10,376 |
ROU liability - long-term |  | Other long-term liabilities |  | 28,219 |  |  | 28,066 |
Total ROU liabilities |  |  |  | $ | 38,905 |  |  | $ | 38,442 |
Included within the balance of operating leases is a lease for the Company’s headquarters which is with a related party. The ROU liability for this facility is approximately $0.8 million as of December 31, 2023 and $1.8 million as of December 31, 2022. Total rent payments for this facility were approximately $1.0 million and $1.0 million during the years ended December 31, 2023 and 2022. An agreement was reached with the related party to reduce rental payments by 12.5% for the lease of the Company’s headquarters, effective February 2022 as part of a voluntary reduction. As of December 31, 2023 and 2022, the total ROU assets attributable to finance leases are approximately $14.5 million and $13.0 million, respectively, which is included in Property, plant, and equipment, net on the Consolidated Balance Sheets. The components of lease costs for the year ended December 31, 2023 and 2022 are as follows (in thousands):
|  | Classification |  | 2023 |  | 2022
Finance lease expense: |  |  |  |  |  |
Amortization of ROU assets |  | Depreciation and amortization |  | $ | 5,152 |  |  | $ | 4,068 |
Interest on lease liabilities |  | Interest expense |  | 917 |  |  | 624 |
Operating lease expense |  | Cost of revenue; Selling, general & administrative expenses |  | 13,234 |  |  | 12,783 |
Short-term lease expense |  | Cost of revenue; Selling, general & administrative expenses |  | 179 |  |  | 77 |
Variable lease expense |  | Cost of revenue; Selling, general & administrative expenses |  | 2,034 |  |  | 2,141 |
Total |  |  |  | $ | 21,516 |  |  | $ | 19,693 |
Additional information related to leases as of December 31, 2023 and 2022 is as follows:
|  | 2023 |  | 2022
Cash paid for amounts included in the measurement of lease liabilities for finance and operating leases (in thousands): |  |  |  |
Finance - financing cash flows |  | $ | 5,047 |  |  | $ | 4,140 |
Finance - operating cash flows |  | 917 |  |  | 624 |
Operating - operating cash flows |  | 13,208 |  |  | 12,502 |
ROU assets obtained in the exchange for lease liabilities: |  |  |  |
Finance leases |  | $ | 7,125 |  |  | $ | 5,076 |
Operating leases |  | 10,598 |  |  | 6,067 |
Weighted-average remaining lease term (in years): |  |  |  |
Finance leases |  | 4.7 |  | 5.1
Operating leases |  | 4.4 |  | 4.7
Weighted-average discount rate: |  |  |  |
Finance leases |  | 6.5 | % |  | 5.5 | %
Operating leases |  | 6.1 | % |  | 5.6 | %
Maturities of lease liabilities as of December 31, 2023 is as follows (in thousands):
| Finance |  | Operating
2024 | $ | 5,955 |  |  | $ | 12,485 |
2025 | 4,520 |  |  | 9,978 |
2026 | 3,787 |  |  | 7,426 |
2027 | 2,832 |  |  | 5,851 |
2028 | 1,168 |  |  | 4,230 |
Thereafter | 128 |  |  | 3,914 |
Total | 18,390 |  |  | 43,884 |
Less: Present value discount | 1,970 |  |  | 4,979 |
Lease liability | $ | 16,420 |  |  | $ | 38,905 |
Leases | Leases The Company leases certain office and operating facilities, machinery, equipment, and vehicles. Concurrent with the adoption of ASC 842, the Company recognized a right-of-use (ROU) asset and lease liability based on the present value of the future lease payments over the lease term for each lease agreement. The Company elected not to recognize a ROU asset and lease liability for leases with terms of 12 months or less and will continue to recognize lease expense for these leases on a straight-line basis over the lease term. The Company has leases with both lease components and non-lease components, such as common area maintenance, utilities, or other repairs and maintenance. For all asset classes, the Company decided to utilize the practical expedient to include both fixed lease components and fixed non-lease components in calculating the ROU asset and lease liability. The Company identified variable lease payments, such as maintenance payments based on actual activities performed or costs incurred, at lease commencement by assessing the nature of the payment provisions, including whether the payments are subject to a minimum charge. Many of the Company's leases include one or more options to renew. When it is reasonably certain that the Company will exercise the option, the Company will include the impact of the option in the lease term for purposes of determining future lease payments. As the Company is unable to determine the discount rate implicit in its lease agreements, the Company uses its incremental borrowing rate on the commencement date to calculate the present value of future payments. The Company’s Consolidated Balance Sheets include the following related to operating leases as of December 31, 2023 and 2022 (in thousands):
Leases |  | Classification |  | 2023 |  | 2022
Assets: |  |  |  |  |  |
ROU assets |  | Other Assets |  | $ | 37,512 |  |  | $ | 36,946 |
Liabilities: |  |  |  |  |  |
ROU liability - current |  | Accrued expenses and other current liabilities |  | $ | 10,686 |  |  | $ | 10,376 |
ROU liability - long-term |  | Other long-term liabilities |  | 28,219 |  |  | 28,066 |
Total ROU liabilities |  |  |  | $ | 38,905 |  |  | $ | 38,442 |
Included within the balance of operating leases is a lease for the Company’s headquarters which is with a related party. The ROU liability for this facility is approximately $0.8 million as of December 31, 2023 and $1.8 million as of December 31, 2022. Total rent payments for this facility were approximately $1.0 million and $1.0 million during the years ended December 31, 2023 and 2022. An agreement was reached with the related party to reduce rental payments by 12.5% for the lease of the Company’s headquarters, effective February 2022 as part of a voluntary reduction. As of December 31, 2023 and 2022, the total ROU assets attributable to finance leases are approximately $14.5 million and $13.0 million, respectively, which is included in Property, plant, and equipment, net on the Consolidated Balance Sheets. The components of lease costs for the year ended December 31, 2023 and 2022 are as follows (in thousands):
|  | Classification |  | 2023 |  | 2022
Finance lease expense: |  |  |  |  |  |
Amortization of ROU assets |  | Depreciation and amortization |  | $ | 5,152 |  |  | $ | 4,068 |
Interest on lease liabilities |  | Interest expense |  | 917 |  |  | 624 |
Operating lease expense |  | Cost of revenue; Selling, general & administrative expenses |  | 13,234 |  |  | 12,783 |
Short-term lease expense |  | Cost of revenue; Selling, general & administrative expenses |  | 179 |  |  | 77 |
Variable lease expense |  | Cost of revenue; Selling, general & administrative expenses |  | 2,034 |  |  | 2,141 |
Total |  |  |  | $ | 21,516 |  |  | $ | 19,693 |
Additional information related to leases as of December 31, 2023 and 2022 is as follows:
|  | 2023 |  | 2022
Cash paid for amounts included in the measurement of lease liabilities for finance and operating leases (in thousands): |  |  |  |
Finance - financing cash flows |  | $ | 5,047 |  |  | $ | 4,140 |
Finance - operating cash flows |  | 917 |  |  | 624 |
Operating - operating cash flows |  | 13,208 |  |  | 12,502 |
ROU assets obtained in the exchange for lease liabilities: |  |  |  |
Finance leases |  | $ | 7,125 |  |  | $ | 5,076 |
Operating leases |  | 10,598 |  |  | 6,067 |
Weighted-average remaining lease term (in years): |  |  |  |
Finance leases |  | 4.7 |  | 5.1
Operating leases |  | 4.4 |  | 4.7
Weighted-average discount rate: |  |  |  |
Finance leases |  | 6.5 | % |  | 5.5 | %
Operating leases |  | 6.1 | % |  | 5.6 | %
Maturities of lease liabilities as of December 31, 2023 is as follows (in thousands):
| Finance |  | Operating
2024 | $ | 5,955 |  |  | $ | 12,485 |
2025 | 4,520 |  |  | 9,978 |
2026 | 3,787 |  |  | 7,426 |
2027 | 2,832 |  |  | 5,851 |
2028 | 1,168 |  |  | 4,230 |
Thereafter | 128 |  |  | 3,914 |
Total | 18,390 |  |  | 43,884 |
Less: Present value discount | 1,970 |  |  | 4,979 |
Lease liability | $ | 16,420 |  |  | $ | 38,905 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration