LEASES (Tables)
|
9 Months Ended |
Sep. 30, 2024 |
|---|
| LEASES |
|
| Components of Lease Expense |
The components of lease expenses are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
Classification within |
|
September 30, |
|
September 30, |
Lease Costs |
|
Statement of Operations |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Operating leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed/base rent |
|
Selling, General and Administrative Expenses |
|
$ |
2,030 |
|
$ |
2,008 |
|
$ |
5,957 |
|
$ |
5,970 |
Short-term payments |
|
Selling, General and Administrative Expenses |
|
|
31 |
|
|
— |
|
|
31 |
|
|
22 |
Variable payments |
|
Selling, General and Administrative Expenses |
|
|
340 |
|
|
281 |
|
|
919 |
|
|
935 |
Finance leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of leased assets |
|
Depreciation and Amortization |
|
|
382 |
|
|
412 |
|
|
1,131 |
|
|
1,113 |
Interest on lease liabilities |
|
Interest Expense, Net |
|
|
61 |
|
|
89 |
|
|
210 |
|
|
309 |
Total lease costs |
|
|
|
$ |
2,844 |
|
$ |
2,790 |
|
$ |
8,248 |
|
$ |
8,349 |
|
| Balance Sheet Information For Leases |
Leases recorded on the balance sheet consist of the following:
|
|
|
|
|
|
|
|
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
Leases |
|
Balance Sheet Classification |
|
2024 |
|
2023 |
Assets |
|
|
|
|
|
|
|
|
Operating lease assets |
|
Operating Lease Right-of-Use Assets, Net |
|
$ |
56,528 |
|
$ |
44,704 |
Finance lease assets |
|
Property and Equipment, Net(1) |
|
|
4,284 |
|
|
4,409 |
Finance lease assets |
|
Finance Lease Right-of-Use Assets, Net(2) |
|
|
1,312 |
|
|
2,318 |
Total lease assets |
|
|
|
$ |
62,124 |
|
$ |
51,431 |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Current |
|
|
|
|
|
|
|
|
Operating |
|
Current Portion of Operating Lease Obligations |
|
$ |
3,964 |
|
$ |
4,784 |
Finance |
|
Current Portion of Finance Lease Obligations |
|
|
1,897 |
|
|
1,694 |
Noncurrent |
|
|
|
|
|
|
|
|
Operating |
|
Operating Lease Obligations, Net of Current Portion |
|
|
53,122 |
|
|
40,248 |
Finance |
|
Finance Lease Obligations, Net of Current Portion |
|
|
1,245 |
|
|
2,705 |
Total lease liabilities |
|
|
|
$ |
60,228 |
|
$ |
49,431 |
__________
| (1) |
Finance lease assets are recorded net of accumulated amortization of $2.9 million at September 30, 2024 and $2.7 million at December 31, 2023.
|
| (2) |
These finance lease assets are recorded separately from Property and Equipment due to meeting qualifying classification criteria under ASC 842, but ownership of such assets is not expected to transfer to the Company upon term expiration. Additionally, amortization of these assets are expensed over the duration of the lease term or the assets’ estimated useful lives, whichever is earlier. |
|
| Operating Lease, Liability, Maturity |
Maturities of lease liabilities at September 30, 2024 are summarized as follows:
|
|
|
|
|
|
|
(In thousands) |
|
|
|
|
|
|
|
|
Operating |
|
Finance |
Years Ending December 31, |
|
Leases |
|
Leases |
2024 (excluding the nine months ended September 30, 2024) |
|
$ |
2,007 |
|
$ |
489 |
2025 |
|
|
7,883 |
|
|
1,721 |
2026 |
|
|
7,147 |
|
|
652 |
2027 |
|
|
6,847 |
|
|
489 |
2028 |
|
|
6,895 |
|
|
— |
Thereafter |
|
|
326,137 |
|
|
— |
Total future minimum lease payments |
|
|
356,916 |
|
|
3,351 |
Less: Amount representing interest |
|
|
(299,830) |
|
|
(209) |
Present value of lease liabilities |
|
|
57,086 |
|
|
3,142 |
Less: Current lease obligations |
|
|
(3,964) |
|
|
(1,897) |
Long-term lease obligations |
|
$ |
53,122 |
|
$ |
1,245 |
|
| Finance Lease, Liability, Maturity |
|
|
|
|
|
|
|
(In thousands) |
|
|
|
|
|
|
|
|
Operating |
|
Finance |
Years Ending December 31, |
|
Leases |
|
Leases |
2024 (excluding the nine months ended September 30, 2024) |
|
$ |
2,007 |
|
$ |
489 |
2025 |
|
|
7,883 |
|
|
1,721 |
2026 |
|
|
7,147 |
|
|
652 |
2027 |
|
|
6,847 |
|
|
489 |
2028 |
|
|
6,895 |
|
|
— |
Thereafter |
|
|
326,137 |
|
|
— |
Total future minimum lease payments |
|
|
356,916 |
|
|
3,351 |
Less: Amount representing interest |
|
|
(299,830) |
|
|
(209) |
Present value of lease liabilities |
|
|
57,086 |
|
|
3,142 |
Less: Current lease obligations |
|
|
(3,964) |
|
|
(1,897) |
Long-term lease obligations |
|
$ |
53,122 |
|
$ |
1,245 |
|
| Other Information Related To Lease Term And Discount Rate |
Other information related to lease term and discount rate is as follows:
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
Lease Term and Discount Rate |
|
2024 |
|
2023 |
Weighted-average remaining lease term |
|
|
|
|
|
|
Operating leases |
|
55.6 |
years |
|
67.9 |
years |
Finance leases |
|
2.2 |
years |
|
2.8 |
years |
Weighted-average discount rate |
|
|
|
|
|
|
Operating leases |
|
10.85 |
% |
|
10.91 |
% |
Finance leases |
|
7.00 |
% |
|
7.46 |
% |
|
| Supplemental Cash Flow Information Related To Leases |
|
|
|
|
|
|
|
(In thousands) |
|
Nine Months Ended |
|
|
September 30, |
Cash paid for amounts included in the measurement of lease liabilities: |
|
2024 |
|
2023 |
Operating cash flows for operating leases |
|
$ |
5,727 |
|
$ |
5,813 |
Operating cash flows for finance leases |
|
$ |
210 |
|
$ |
309 |
Financing cash flows for finance leases |
|
$ |
1,257 |
|
$ |
1,159 |
|