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LEASES
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
LEASES

4. LEASES

 

The Company has operating leases for real estate and vehicles. The Company has finance leases for equipment and land for future construction. Leases are classified as finance leases because ownership of the underlying assets transfers at the end the lease term. Remaining lease terms for these leases range from less than one year to six years.

 

The Company does not record leases with a term of 12 months or less on the balance sheet.

 

Supplemental balance sheet information related to leases was as follows:

 

   Balance Sheet  December 31, 
   Classification  2022   2021 
Assets      (in thousands) 
Operating leases  Right-of-use assets  $1,816   $2,077 
Finance leases  Right-of-use assets   8,614    14,282 
Total assets     $10,430   $16,359 
              
Liabilities             
Current liabilities             
Operating leases  Current portion of long-term debt  $621   $685 
Finance leases  Current portion of long-term debt   1,380    2,318 
Total current liabilities      2,001    3,003 
Noncurrent liabilities             
Operating leases  Long-term debt   665    1,529 
Finance leases  Long-term debt   235    2,923 
Total noncurrent liabilities      900    4,452 
Total liabilities     $2,901   $7,455 

 

Right-of-use assets and their corresponding lease liabilities are measured and recognized based on the present value of the future minimum lease payments over the lease term at the commencement date.

 

Discount Rates

 

For most of its leases, the Company uses the rate implicit in the lease. For leases without an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments for those leases.

 

The weighted-average discount rates for the Company’s leases were as follows:

 

   December 31, 
   2022   2021 
Operating leases   5.0%   5.0%
Finance leases   6.1%   6.2%

 

Lease Payments

 

The Company includes lease payments under options to extend or terminate the lease in the measurement of the right-of-use asset and lease liability when it is reasonably certain that it will exercise such options. Fixed lease costs represent the explicitly quantified lease payments prescribed by the lease agreement and are included in the measurement of the right-of-use asset and corresponding lease liability.

 

The weighted-average remaining lease term of the Company’s leases were as follows:

 

    December 31, 
    2022    2021 
Operating leases   6.4 years    6.6 years 
Finance leases   0.8 years    2.0 years 

 

 

The components of lease expense for the years ended December 31, 2022, 2021, and 2020 were as follows:

 

   2022   2021   2020 
   December 31, 
   2022   2021   2020 
   (in thousands) 
Operating lease cost  $987   $707   $674 
Finance lease cost:               
Amortization of right-of-use assets   470    466    509 
Interest on lease liabilities   190    446    655 
Total lease cost  $1,647   $1,619   $1,838 

 

As of December 31, 2022, future maturities of lease liabilities were as follows:

 

   Operating Leases   Finance Leases 
   (in thousands) 
2023   672    1,662 
2024   201    155 
2025   84    36 
2026   56    17 
2027   55    5 
Thereafter   406    - 
Total lease payments   1,474    1,875 
Less: Interest   (188)   (260)
Present value of lease liabilities  $1,286   $1,615 

 

Other information related to leases for the years ended December 31, 2022, 2021 and 2020 were as follows:

 

   2022   2021   2020 
   December 31, 
   2022   2021   2020 
   (in thousands) 
Cash paid for amounts included in the measurement of lease liabilities:               
Operating cash flows used for operating leases  $987   $707   $674 
Operating cash flows used for finance leases  $470   $466   $509 
Financing cash flows used for finance leases  $190   $446   $655