Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

Leases

Facilities, Energy Servers, and Vehicles

We lease most of our facilities, the Energy Servers, and vehicles under operating and finance leases that expire at various dates through November 2037. We lease various manufacturing facilities in California and Delaware. We lease additional office space as field offices in the U.S. and around the world including in China, India, Germany, Japan, the Republic of Korea and Taiwan.

Some of the lease arrangements have free rent periods or escalating rent payment provisions. We recognize lease cost under such arrangements on a straight-line basis over the life of the leases. For the years ended December 31, 2023, 2022 and 2021, rent expenses for all occupied facilities were $23.0 million, $21.4 million and $16.0 million, respectively.

At inception of the contract, we assess whether a contract is a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by us. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (financing lease) or not (operating lease). Our operating leases are comprised primarily of leases for facilities, the Energy Servers, office buildings, and vehicles, and our financing leases are comprised primarily of vehicles.

Our leases have lease terms ranging from less than 1 year to 15 years, some of which include options to extend the leases. The lease term is the non-cancelable period of the lease and includes options to extend the lease when it is reasonably certain that an option will be exercised.

Lease liabilities are measured at the lease commencement date as the present value of future lease payments. Lease right-of-use assets are measured as the lease liability plus unamortized initial direct costs and prepaid (accrued) lease payments less

unamortized balance lease incentives received. In measuring the present value of the future lease payments, the discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. In that case, the lessee is required to use its Incremental Borrowing Rate (“IBR”). In computing our lease liabilities, we use the IBR based on the information available on the commencement date using an estimate of company-specific rate in the U.S. on a collateralized basis and consistent with the lease term for each lease. The lease term is the non-cancelable period of the lease and includes options to extend or terminate the lease when it is reasonably certain that an option will be exercised.

Operating and financing lease right-of-use assets and lease liabilities as of December 31, 2023 and 2022 were as follows (in thousands):

	Years Ended December 31,
	2023		2022
Operating Leases:
Operating lease right-of-use assets, net 1, 2	$	139,732	$	126,955
Current operating lease liabilities	(20,245)		(16,227)
Non-current operating lease liabilities	(141,939)		(132,363)
Total operating lease liabilities	$	(162,184)	$	(148,590)
Finance Leases:
Finance lease right-of-use assets, net 2, 3, 4	$	2,708	$	2,824
Current finance lease liabilities 5	(1,072)		(1,024)
Non-current finance lease liabilities 6	(1,837)		(1,971)
Total finance lease liabilities	(2,909)		(2,995)
Total lease liabilities	$	(165,093)	$	(151,585)

1 These assets primarily include leases for facilities, the Energy Servers, and vehicles.

2 Net of accumulated amortization.

3 These assets primarily include leases for vehicles.

4 Included in property, plant and equipment, net in the consolidated balance sheets.

5 Included in accrued expenses and other current liabilities in the consolidated balance sheets.

6 Included in other long-term liabilities in the consolidated balance sheets.

The components of our lease costs for the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands):

	Years Ended December 31,
	2023		2022		2021
Operating lease costs	$	33,190	$	25,503	$	15,850
Financing lease costs:
Amortization of right-of-use assets	891		968		1,345
Interest on lease liabilities	273		220		349
Total financing lease costs	1,164		1,188		1,694
Short-term lease costs	517		974		407
Total lease costs	$	34,871	$	27,665	$	17,951

Weighted average remaining lease terms and discount rates for our leases as of December 31, 2023 and 2022 were as follows:

	December 31,
	2023		2022
Weighted average remaining lease term:
Operating leases	7.4 years		8.6 years
Finance leases	3.2 years		3.3 years
Weighted average discount rate:
Operating leases	10.6	%	10.3	%
Finance leases	9.5	%	6.9	%

Future lease payments under lease agreements as of December 31, 2023 were as follows (in thousands):

	Operating Leases		Finance Leases
2024	$	35,666	$	1,302
2025	33,177		864
2026	33,157		630
2027	31,994		462
2028	25,690		133
Thereafter	79,707		—
Total minimum lease payments	239,391		3,391
Less: amounts representing interest or imputed interest	(77,207)		(482)
Present value of lease liabilities	$	162,184	$	2,909

Managed Services and Portfolio Financings Through the PPA Entities

Certain of our customers enter into Managed Services or Portfolio Financings through a PPA Entity to finance their lease of Bloom Energy Servers. Customer arrangements under Managed Services and Portfolio Financings through PPA Entities entered into after January 1, 2020, do not contain a lease under ASC 842 and are accounted for under ASC 606 as revenue arrangements.

Lease agreements under our Managed Services Financings and Portfolio Financings through the PPA Entities include non-cancellable lease terms, during which terms the majority of our investment in the Energy Servers under lease are typically recovered. We mitigate remaining residual value risk of the Energy Servers through provision of maintenance on the Energy Servers during the lease term and through insurance which proceeds are payable in the event of theft, loss, damage, or destruction.

Managed Services — Our Managed Services Financings with financiers that result in failed sale-and-leaseback transactions are accounted for as financing transactions. Payments received from the financier are recognized as financing obligations in our consolidated balance sheets. Proceeds from the financiers in excess of fair value of the Energy Servers under successful sale-and-leaseback transactions are also accounted for as financing obligations. These financing obligations are included in each agreement’s contract value and are recognized as short-term or long-term financing obligations based on the estimated payment dates. The lease agreements expire on various dates through 2034. For successful sale-and-leaseback transactions, we record operating lease right-of-use assets and operating lease liabilities and record operating lease expenses over the lease term. The recognized operating lease expenses for the years ended December 31, 2023 and 2022 were $9.7 million and $5.6 million. The recognized operating lease expenses for the year ended December 31, 2021 were immaterial.

We recognized $28.7 million, $20.4 million and $35.1 million of product revenue, $8.4 million, $11.3 million and $20.9 million of installation revenue, $5.0 million, $3.3 million and $10.0 million of financing obligations, and $16.5 million, $12.6 million and $29.4 million of operating lease right-of-use assets and operating lease liabilities from such successful sale and leaseback transactions for the years ended December 31, 2023, 2022 and 2021, respectively.

At December 31, 2023, future lease payments under the Managed Services Agreements financing obligations were as follows (in thousands):

	Financing Obligations
2024	$	43,799
2025	42,868
2026	38,298
2027	21,972
2028	12,068
Thereafter	26,340
Total minimum lease payments	185,345
Less: imputed interest	(97,017)
Present value of net minimum lease payments	88,328
Less: current financing obligations	(38,971)
Long-term financing obligations	$	49,357

The total financing obligations, as reflected in our consolidated balance sheets, were $444.8 million and $459.4 million as of December 31, 2023 and 2022, respectively. We expect the difference between these obligations and the principal obligations in the table above to be offset against the carrying value of the related Energy Servers at the end of the lease and the remainder recognized as either a gain or loss at that point.

Portfolio Financings through the PPA Entities — Customer arrangements entered into prior to January 1, 2020 under Portfolio Financing arrangements through a PPA Entity that qualified as leases were accounted for as either sales-type leases or operating leases. Since January 1, 2020, we have not entered into any PPAs with customers under such arrangements.

In August 2023, we sold our last consolidated PPA Entity, PPA V. For additional information, please see Note 10 — Portfolio Financings.

Leases

Leases

Facilities, Energy Servers, and Vehicles

We lease most of our facilities, the Energy Servers, and vehicles under operating and finance leases that expire at various dates through November 2037. We lease various manufacturing facilities in California and Delaware. We lease additional office space as field offices in the U.S. and around the world including in China, India, Germany, Japan, the Republic of Korea and Taiwan.

Some of the lease arrangements have free rent periods or escalating rent payment provisions. We recognize lease cost under such arrangements on a straight-line basis over the life of the leases. For the years ended December 31, 2023, 2022 and 2021, rent expenses for all occupied facilities were $23.0 million, $21.4 million and $16.0 million, respectively.

At inception of the contract, we assess whether a contract is a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by us. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (financing lease) or not (operating lease). Our operating leases are comprised primarily of leases for facilities, the Energy Servers, office buildings, and vehicles, and our financing leases are comprised primarily of vehicles.

Our leases have lease terms ranging from less than 1 year to 15 years, some of which include options to extend the leases. The lease term is the non-cancelable period of the lease and includes options to extend the lease when it is reasonably certain that an option will be exercised.

Lease liabilities are measured at the lease commencement date as the present value of future lease payments. Lease right-of-use assets are measured as the lease liability plus unamortized initial direct costs and prepaid (accrued) lease payments less

unamortized balance lease incentives received. In measuring the present value of the future lease payments, the discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. In that case, the lessee is required to use its Incremental Borrowing Rate (“IBR”). In computing our lease liabilities, we use the IBR based on the information available on the commencement date using an estimate of company-specific rate in the U.S. on a collateralized basis and consistent with the lease term for each lease. The lease term is the non-cancelable period of the lease and includes options to extend or terminate the lease when it is reasonably certain that an option will be exercised.

Operating and financing lease right-of-use assets and lease liabilities as of December 31, 2023 and 2022 were as follows (in thousands):

	Years Ended December 31,
	2023		2022
Operating Leases:
Operating lease right-of-use assets, net 1, 2	$	139,732	$	126,955
Current operating lease liabilities	(20,245)		(16,227)
Non-current operating lease liabilities	(141,939)		(132,363)
Total operating lease liabilities	$	(162,184)	$	(148,590)
Finance Leases:
Finance lease right-of-use assets, net 2, 3, 4	$	2,708	$	2,824
Current finance lease liabilities 5	(1,072)		(1,024)
Non-current finance lease liabilities 6	(1,837)		(1,971)
Total finance lease liabilities	(2,909)		(2,995)
Total lease liabilities	$	(165,093)	$	(151,585)

1 These assets primarily include leases for facilities, the Energy Servers, and vehicles.

2 Net of accumulated amortization.

3 These assets primarily include leases for vehicles.

4 Included in property, plant and equipment, net in the consolidated balance sheets.

5 Included in accrued expenses and other current liabilities in the consolidated balance sheets.

6 Included in other long-term liabilities in the consolidated balance sheets.

The components of our lease costs for the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands):

	Years Ended December 31,
	2023		2022		2021
Operating lease costs	$	33,190	$	25,503	$	15,850
Financing lease costs:
Amortization of right-of-use assets	891		968		1,345
Interest on lease liabilities	273		220		349
Total financing lease costs	1,164		1,188		1,694
Short-term lease costs	517		974		407
Total lease costs	$	34,871	$	27,665	$	17,951

Weighted average remaining lease terms and discount rates for our leases as of December 31, 2023 and 2022 were as follows:

	December 31,
	2023		2022
Weighted average remaining lease term:
Operating leases	7.4 years		8.6 years
Finance leases	3.2 years		3.3 years
Weighted average discount rate:
Operating leases	10.6	%	10.3	%
Finance leases	9.5	%	6.9	%

Future lease payments under lease agreements as of December 31, 2023 were as follows (in thousands):

	Operating Leases		Finance Leases
2024	$	35,666	$	1,302
2025	33,177		864
2026	33,157		630
2027	31,994		462
2028	25,690		133
Thereafter	79,707		—
Total minimum lease payments	239,391		3,391
Less: amounts representing interest or imputed interest	(77,207)		(482)
Present value of lease liabilities	$	162,184	$	2,909

Managed Services and Portfolio Financings Through the PPA Entities

Certain of our customers enter into Managed Services or Portfolio Financings through a PPA Entity to finance their lease of Bloom Energy Servers. Customer arrangements under Managed Services and Portfolio Financings through PPA Entities entered into after January 1, 2020, do not contain a lease under ASC 842 and are accounted for under ASC 606 as revenue arrangements.

Lease agreements under our Managed Services Financings and Portfolio Financings through the PPA Entities include non-cancellable lease terms, during which terms the majority of our investment in the Energy Servers under lease are typically recovered. We mitigate remaining residual value risk of the Energy Servers through provision of maintenance on the Energy Servers during the lease term and through insurance which proceeds are payable in the event of theft, loss, damage, or destruction.

Managed Services — Our Managed Services Financings with financiers that result in failed sale-and-leaseback transactions are accounted for as financing transactions. Payments received from the financier are recognized as financing obligations in our consolidated balance sheets. Proceeds from the financiers in excess of fair value of the Energy Servers under successful sale-and-leaseback transactions are also accounted for as financing obligations. These financing obligations are included in each agreement’s contract value and are recognized as short-term or long-term financing obligations based on the estimated payment dates. The lease agreements expire on various dates through 2034. For successful sale-and-leaseback transactions, we record operating lease right-of-use assets and operating lease liabilities and record operating lease expenses over the lease term. The recognized operating lease expenses for the years ended December 31, 2023 and 2022 were $9.7 million and $5.6 million. The recognized operating lease expenses for the year ended December 31, 2021 were immaterial.

We recognized $28.7 million, $20.4 million and $35.1 million of product revenue, $8.4 million, $11.3 million and $20.9 million of installation revenue, $5.0 million, $3.3 million and $10.0 million of financing obligations, and $16.5 million, $12.6 million and $29.4 million of operating lease right-of-use assets and operating lease liabilities from such successful sale and leaseback transactions for the years ended December 31, 2023, 2022 and 2021, respectively.

At December 31, 2023, future lease payments under the Managed Services Agreements financing obligations were as follows (in thousands):

	Financing Obligations
2024	$	43,799
2025	42,868
2026	38,298
2027	21,972
2028	12,068
Thereafter	26,340
Total minimum lease payments	185,345
Less: imputed interest	(97,017)
Present value of net minimum lease payments	88,328
Less: current financing obligations	(38,971)
Long-term financing obligations	$	49,357

The total financing obligations, as reflected in our consolidated balance sheets, were $444.8 million and $459.4 million as of December 31, 2023 and 2022, respectively. We expect the difference between these obligations and the principal obligations in the table above to be offset against the carrying value of the related Energy Servers at the end of the lease and the remainder recognized as either a gain or loss at that point.

Portfolio Financings through the PPA Entities — Customer arrangements entered into prior to January 1, 2020 under Portfolio Financing arrangements through a PPA Entity that qualified as leases were accounted for as either sales-type leases or operating leases. Since January 1, 2020, we have not entered into any PPAs with customers under such arrangements.

In August 2023, we sold our last consolidated PPA Entity, PPA V. For additional information, please see Note 10 — Portfolio Financings.

Leases

Leases

Facilities, Energy Servers, and Vehicles

We lease most of our facilities, the Energy Servers, and vehicles under operating and finance leases that expire at various dates through November 2037. We lease various manufacturing facilities in California and Delaware. We lease additional office space as field offices in the U.S. and around the world including in China, India, Germany, Japan, the Republic of Korea and Taiwan.

Some of the lease arrangements have free rent periods or escalating rent payment provisions. We recognize lease cost under such arrangements on a straight-line basis over the life of the leases. For the years ended December 31, 2023, 2022 and 2021, rent expenses for all occupied facilities were $23.0 million, $21.4 million and $16.0 million, respectively.

At inception of the contract, we assess whether a contract is a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by us. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (financing lease) or not (operating lease). Our operating leases are comprised primarily of leases for facilities, the Energy Servers, office buildings, and vehicles, and our financing leases are comprised primarily of vehicles.

Our leases have lease terms ranging from less than 1 year to 15 years, some of which include options to extend the leases. The lease term is the non-cancelable period of the lease and includes options to extend the lease when it is reasonably certain that an option will be exercised.

Lease liabilities are measured at the lease commencement date as the present value of future lease payments. Lease right-of-use assets are measured as the lease liability plus unamortized initial direct costs and prepaid (accrued) lease payments less

unamortized balance lease incentives received. In measuring the present value of the future lease payments, the discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. In that case, the lessee is required to use its Incremental Borrowing Rate (“IBR”). In computing our lease liabilities, we use the IBR based on the information available on the commencement date using an estimate of company-specific rate in the U.S. on a collateralized basis and consistent with the lease term for each lease. The lease term is the non-cancelable period of the lease and includes options to extend or terminate the lease when it is reasonably certain that an option will be exercised.

Operating and financing lease right-of-use assets and lease liabilities as of December 31, 2023 and 2022 were as follows (in thousands):

	Years Ended December 31,
	2023		2022
Operating Leases:
Operating lease right-of-use assets, net 1, 2	$	139,732	$	126,955
Current operating lease liabilities	(20,245)		(16,227)
Non-current operating lease liabilities	(141,939)		(132,363)
Total operating lease liabilities	$	(162,184)	$	(148,590)
Finance Leases:
Finance lease right-of-use assets, net 2, 3, 4	$	2,708	$	2,824
Current finance lease liabilities 5	(1,072)		(1,024)
Non-current finance lease liabilities 6	(1,837)		(1,971)
Total finance lease liabilities	(2,909)		(2,995)
Total lease liabilities	$	(165,093)	$	(151,585)

1 These assets primarily include leases for facilities, the Energy Servers, and vehicles.

2 Net of accumulated amortization.

3 These assets primarily include leases for vehicles.

4 Included in property, plant and equipment, net in the consolidated balance sheets.

5 Included in accrued expenses and other current liabilities in the consolidated balance sheets.

6 Included in other long-term liabilities in the consolidated balance sheets.

The components of our lease costs for the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands):

	Years Ended December 31,
	2023		2022		2021
Operating lease costs	$	33,190	$	25,503	$	15,850
Financing lease costs:
Amortization of right-of-use assets	891		968		1,345
Interest on lease liabilities	273		220		349
Total financing lease costs	1,164		1,188		1,694
Short-term lease costs	517		974		407
Total lease costs	$	34,871	$	27,665	$	17,951

Weighted average remaining lease terms and discount rates for our leases as of December 31, 2023 and 2022 were as follows:

	December 31,
	2023		2022
Weighted average remaining lease term:
Operating leases	7.4 years		8.6 years
Finance leases	3.2 years		3.3 years
Weighted average discount rate:
Operating leases	10.6	%	10.3	%
Finance leases	9.5	%	6.9	%

Future lease payments under lease agreements as of December 31, 2023 were as follows (in thousands):

	Operating Leases		Finance Leases
2024	$	35,666	$	1,302
2025	33,177		864
2026	33,157		630
2027	31,994		462
2028	25,690		133
Thereafter	79,707		—
Total minimum lease payments	239,391		3,391
Less: amounts representing interest or imputed interest	(77,207)		(482)
Present value of lease liabilities	$	162,184	$	2,909

Managed Services and Portfolio Financings Through the PPA Entities

Certain of our customers enter into Managed Services or Portfolio Financings through a PPA Entity to finance their lease of Bloom Energy Servers. Customer arrangements under Managed Services and Portfolio Financings through PPA Entities entered into after January 1, 2020, do not contain a lease under ASC 842 and are accounted for under ASC 606 as revenue arrangements.

Lease agreements under our Managed Services Financings and Portfolio Financings through the PPA Entities include non-cancellable lease terms, during which terms the majority of our investment in the Energy Servers under lease are typically recovered. We mitigate remaining residual value risk of the Energy Servers through provision of maintenance on the Energy Servers during the lease term and through insurance which proceeds are payable in the event of theft, loss, damage, or destruction.

Managed Services — Our Managed Services Financings with financiers that result in failed sale-and-leaseback transactions are accounted for as financing transactions. Payments received from the financier are recognized as financing obligations in our consolidated balance sheets. Proceeds from the financiers in excess of fair value of the Energy Servers under successful sale-and-leaseback transactions are also accounted for as financing obligations. These financing obligations are included in each agreement’s contract value and are recognized as short-term or long-term financing obligations based on the estimated payment dates. The lease agreements expire on various dates through 2034. For successful sale-and-leaseback transactions, we record operating lease right-of-use assets and operating lease liabilities and record operating lease expenses over the lease term. The recognized operating lease expenses for the years ended December 31, 2023 and 2022 were $9.7 million and $5.6 million. The recognized operating lease expenses for the year ended December 31, 2021 were immaterial.

We recognized $28.7 million, $20.4 million and $35.1 million of product revenue, $8.4 million, $11.3 million and $20.9 million of installation revenue, $5.0 million, $3.3 million and $10.0 million of financing obligations, and $16.5 million, $12.6 million and $29.4 million of operating lease right-of-use assets and operating lease liabilities from such successful sale and leaseback transactions for the years ended December 31, 2023, 2022 and 2021, respectively.

At December 31, 2023, future lease payments under the Managed Services Agreements financing obligations were as follows (in thousands):

	Financing Obligations
2024	$	43,799
2025	42,868
2026	38,298
2027	21,972
2028	12,068
Thereafter	26,340
Total minimum lease payments	185,345
Less: imputed interest	(97,017)
Present value of net minimum lease payments	88,328
Less: current financing obligations	(38,971)
Long-term financing obligations	$	49,357

The total financing obligations, as reflected in our consolidated balance sheets, were $444.8 million and $459.4 million as of December 31, 2023 and 2022, respectively. We expect the difference between these obligations and the principal obligations in the table above to be offset against the carrying value of the related Energy Servers at the end of the lease and the remainder recognized as either a gain or loss at that point.

Portfolio Financings through the PPA Entities — Customer arrangements entered into prior to January 1, 2020 under Portfolio Financing arrangements through a PPA Entity that qualified as leases were accounted for as either sales-type leases or operating leases. Since January 1, 2020, we have not entered into any PPAs with customers under such arrangements.

In August 2023, we sold our last consolidated PPA Entity, PPA V. For additional information, please see Note 10 — Portfolio Financings.

Leases

Leases

Facilities, Energy Servers, and Vehicles

We lease most of our facilities, the Energy Servers, and vehicles under operating and finance leases that expire at various dates through November 2037. We lease various manufacturing facilities in California and Delaware. We lease additional office space as field offices in the U.S. and around the world including in China, India, Germany, Japan, the Republic of Korea and Taiwan.

Some of the lease arrangements have free rent periods or escalating rent payment provisions. We recognize lease cost under such arrangements on a straight-line basis over the life of the leases. For the years ended December 31, 2023, 2022 and 2021, rent expenses for all occupied facilities were $23.0 million, $21.4 million and $16.0 million, respectively.

At inception of the contract, we assess whether a contract is a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by us. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (financing lease) or not (operating lease). Our operating leases are comprised primarily of leases for facilities, the Energy Servers, office buildings, and vehicles, and our financing leases are comprised primarily of vehicles.

Our leases have lease terms ranging from less than 1 year to 15 years, some of which include options to extend the leases. The lease term is the non-cancelable period of the lease and includes options to extend the lease when it is reasonably certain that an option will be exercised.

Lease liabilities are measured at the lease commencement date as the present value of future lease payments. Lease right-of-use assets are measured as the lease liability plus unamortized initial direct costs and prepaid (accrued) lease payments less

unamortized balance lease incentives received. In measuring the present value of the future lease payments, the discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. In that case, the lessee is required to use its Incremental Borrowing Rate (“IBR”). In computing our lease liabilities, we use the IBR based on the information available on the commencement date using an estimate of company-specific rate in the U.S. on a collateralized basis and consistent with the lease term for each lease. The lease term is the non-cancelable period of the lease and includes options to extend or terminate the lease when it is reasonably certain that an option will be exercised.

Operating and financing lease right-of-use assets and lease liabilities as of December 31, 2023 and 2022 were as follows (in thousands):

	Years Ended December 31,
	2023		2022
Operating Leases:
Operating lease right-of-use assets, net 1, 2	$	139,732	$	126,955
Current operating lease liabilities	(20,245)		(16,227)
Non-current operating lease liabilities	(141,939)		(132,363)
Total operating lease liabilities	$	(162,184)	$	(148,590)
Finance Leases:
Finance lease right-of-use assets, net 2, 3, 4	$	2,708	$	2,824
Current finance lease liabilities 5	(1,072)		(1,024)
Non-current finance lease liabilities 6	(1,837)		(1,971)
Total finance lease liabilities	(2,909)		(2,995)
Total lease liabilities	$	(165,093)	$	(151,585)

1 These assets primarily include leases for facilities, the Energy Servers, and vehicles.

2 Net of accumulated amortization.

3 These assets primarily include leases for vehicles.

4 Included in property, plant and equipment, net in the consolidated balance sheets.

5 Included in accrued expenses and other current liabilities in the consolidated balance sheets.

6 Included in other long-term liabilities in the consolidated balance sheets.

The components of our lease costs for the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands):

	Years Ended December 31,
	2023		2022		2021
Operating lease costs	$	33,190	$	25,503	$	15,850
Financing lease costs:
Amortization of right-of-use assets	891		968		1,345
Interest on lease liabilities	273		220		349
Total financing lease costs	1,164		1,188		1,694
Short-term lease costs	517		974		407
Total lease costs	$	34,871	$	27,665	$	17,951

Weighted average remaining lease terms and discount rates for our leases as of December 31, 2023 and 2022 were as follows:

	December 31,
	2023		2022
Weighted average remaining lease term:
Operating leases	7.4 years		8.6 years
Finance leases	3.2 years		3.3 years
Weighted average discount rate:
Operating leases	10.6	%	10.3	%
Finance leases	9.5	%	6.9	%

Future lease payments under lease agreements as of December 31, 2023 were as follows (in thousands):

	Operating Leases		Finance Leases
2024	$	35,666	$	1,302
2025	33,177		864
2026	33,157		630
2027	31,994		462
2028	25,690		133
Thereafter	79,707		—
Total minimum lease payments	239,391		3,391
Less: amounts representing interest or imputed interest	(77,207)		(482)
Present value of lease liabilities	$	162,184	$	2,909

Managed Services and Portfolio Financings Through the PPA Entities

Certain of our customers enter into Managed Services or Portfolio Financings through a PPA Entity to finance their lease of Bloom Energy Servers. Customer arrangements under Managed Services and Portfolio Financings through PPA Entities entered into after January 1, 2020, do not contain a lease under ASC 842 and are accounted for under ASC 606 as revenue arrangements.

Lease agreements under our Managed Services Financings and Portfolio Financings through the PPA Entities include non-cancellable lease terms, during which terms the majority of our investment in the Energy Servers under lease are typically recovered. We mitigate remaining residual value risk of the Energy Servers through provision of maintenance on the Energy Servers during the lease term and through insurance which proceeds are payable in the event of theft, loss, damage, or destruction.

Managed Services — Our Managed Services Financings with financiers that result in failed sale-and-leaseback transactions are accounted for as financing transactions. Payments received from the financier are recognized as financing obligations in our consolidated balance sheets. Proceeds from the financiers in excess of fair value of the Energy Servers under successful sale-and-leaseback transactions are also accounted for as financing obligations. These financing obligations are included in each agreement’s contract value and are recognized as short-term or long-term financing obligations based on the estimated payment dates. The lease agreements expire on various dates through 2034. For successful sale-and-leaseback transactions, we record operating lease right-of-use assets and operating lease liabilities and record operating lease expenses over the lease term. The recognized operating lease expenses for the years ended December 31, 2023 and 2022 were $9.7 million and $5.6 million. The recognized operating lease expenses for the year ended December 31, 2021 were immaterial.

We recognized $28.7 million, $20.4 million and $35.1 million of product revenue, $8.4 million, $11.3 million and $20.9 million of installation revenue, $5.0 million, $3.3 million and $10.0 million of financing obligations, and $16.5 million, $12.6 million and $29.4 million of operating lease right-of-use assets and operating lease liabilities from such successful sale and leaseback transactions for the years ended December 31, 2023, 2022 and 2021, respectively.

At December 31, 2023, future lease payments under the Managed Services Agreements financing obligations were as follows (in thousands):

	Financing Obligations
2024	$	43,799
2025	42,868
2026	38,298
2027	21,972
2028	12,068
Thereafter	26,340
Total minimum lease payments	185,345
Less: imputed interest	(97,017)
Present value of net minimum lease payments	88,328
Less: current financing obligations	(38,971)
Long-term financing obligations	$	49,357

The total financing obligations, as reflected in our consolidated balance sheets, were $444.8 million and $459.4 million as of December 31, 2023 and 2022, respectively. We expect the difference between these obligations and the principal obligations in the table above to be offset against the carrying value of the related Energy Servers at the end of the lease and the remainder recognized as either a gain or loss at that point.

Portfolio Financings through the PPA Entities — Customer arrangements entered into prior to January 1, 2020 under Portfolio Financing arrangements through a PPA Entity that qualified as leases were accounted for as either sales-type leases or operating leases. Since January 1, 2020, we have not entered into any PPAs with customers under such arrangements.

In August 2023, we sold our last consolidated PPA Entity, PPA V. For additional information, please see Note 10 — Portfolio Financings.