Leases

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Leases

Leases

Facilities, Energy Servers, and Vehicles

For the three months ended March 31, 2024 and 2023, rent expense for all occupied facilities was $5.6 million and $5.6 million, respectively.

Operating and financing lease right-of-use assets and lease liabilities as of March 31, 2024 and December 31, 2023, were as follows (in thousands):

	March 31,		December 31,
	2024		2023
Operating Leases:
Operating lease right-of-use assets, net 1, 2	$	138,941	$	139,732
Current operating lease liabilities	(20,513)		(20,245)
Non-current operating lease liabilities	(141,024)		(141,939)
Total operating lease liabilities	$	(161,537)	$	(162,184)
Finance Leases:
Finance lease right-of-use assets, net 2, 3, 4	$	2,508	$	2,708
Current finance lease liabilities5	(981)		(1,072)
Non-current finance lease liabilities6	(1,730)		(1,837)
Total finance lease liabilities	$	(2,711)	$	(2,909)
Total lease liabilities	$	(164,248)	$	(165,093)

1 These assets primarily include leases for facilities, 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 condensed consolidated balance sheets.

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

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

The components of our lease costs for the three months ended March 31, 2024 and 2023, were as follows (in thousands):

	Three Months Ended March 31,
	2024		2023
Operating lease costs	$	8,905	$	7,799
Financing lease costs:
Amortization of right-of-use assets	297		201
Interest on lease liabilities	66		62
Total financing lease costs	363		263
Short-term lease costs	9		444
Total lease costs	$	9,277	$	8,506

Weighted average remaining lease terms and discount rates for our leases as of March 31, 2024 and December 31, 2023, were as follows:

	March 31,		December 31,
	2024		2023
Weighted average remaining lease term:
Operating leases	7.2 years		7.4 years
Finance leases	3.2 years		3.2 years
Weighted average discount rate:
Operating leases	10.6	%	10.6	%
Finance leases	9.6	%	9.5	%

Future lease payments under lease agreements as of March 31, 2024 were as follows (in thousands):

	Operating Leases		Finance Leases
Remainder of 2024	$	27,468	$	961
2025	34,009		888
2026	34,014		654
2027	32,875		486
2028	26,618		157
2029	19,847		4
Thereafter	61,116		—
Total minimum lease payments	235,947		3,150
Less: amounts representing interest or imputed interest	(74,410)		(439)
Present value of lease liabilities	$	161,537	$	2,711

Managed Services Financing

For details on Managed Services Financing refer to Part I, Item 7, Section Purchase and Financing Options, sub-section Managed Services Financing and Part II, Item 8, Note 8 — Leases in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

We recognized $7.1 million and $7.3 million of product revenue, $2.3 million and $3.0 million of installation revenue, $1.3 million and $1.2 million of financing obligations, and $4.1 million and $5.5 million of operating lease right-of-use assets and operating lease liabilities from successful sale and leaseback transactions for the three months ended March 31, 2024 and 2023, respectively.

The recognized operating lease expense from successful sale and leaseback transactions for the three months ended March 31, 2024 and 2023, was $3.1 million and $2.1 million, respectively.

At March 31, 2024, future lease payments under the Managed Services Agreements financing obligations were as follows (in thousands):

	Financing Obligations
Remainder of 2024	$	32,615
2025	43,157
2026	38,595
2027	22,271
2028	12,369
Thereafter	26,773
Total minimum lease payments	175,780
Less: imputed interest	(90,616)
Present value of net minimum lease payments	85,164
Less: current financing obligations	(36,729)
Long-term financing obligations	$	48,435

The total financing obligations, as reflected in our condensed consolidated balance sheets, were $441.5 million and $444.8 million as of March 31, 2024 and December 31, 2023, 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.

Leases

Leases

Facilities, Energy Servers, and Vehicles

For the three months ended March 31, 2024 and 2023, rent expense for all occupied facilities was $5.6 million and $5.6 million, respectively.

Operating and financing lease right-of-use assets and lease liabilities as of March 31, 2024 and December 31, 2023, were as follows (in thousands):

	March 31,		December 31,
	2024		2023
Operating Leases:
Operating lease right-of-use assets, net 1, 2	$	138,941	$	139,732
Current operating lease liabilities	(20,513)		(20,245)
Non-current operating lease liabilities	(141,024)		(141,939)
Total operating lease liabilities	$	(161,537)	$	(162,184)
Finance Leases:
Finance lease right-of-use assets, net 2, 3, 4	$	2,508	$	2,708
Current finance lease liabilities5	(981)		(1,072)
Non-current finance lease liabilities6	(1,730)		(1,837)
Total finance lease liabilities	$	(2,711)	$	(2,909)
Total lease liabilities	$	(164,248)	$	(165,093)

1 These assets primarily include leases for facilities, 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 condensed consolidated balance sheets.

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

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

The components of our lease costs for the three months ended March 31, 2024 and 2023, were as follows (in thousands):

	Three Months Ended March 31,
	2024		2023
Operating lease costs	$	8,905	$	7,799
Financing lease costs:
Amortization of right-of-use assets	297		201
Interest on lease liabilities	66		62
Total financing lease costs	363		263
Short-term lease costs	9		444
Total lease costs	$	9,277	$	8,506

Weighted average remaining lease terms and discount rates for our leases as of March 31, 2024 and December 31, 2023, were as follows:

	March 31,		December 31,
	2024		2023
Weighted average remaining lease term:
Operating leases	7.2 years		7.4 years
Finance leases	3.2 years		3.2 years
Weighted average discount rate:
Operating leases	10.6	%	10.6	%
Finance leases	9.6	%	9.5	%

Future lease payments under lease agreements as of March 31, 2024 were as follows (in thousands):

	Operating Leases		Finance Leases
Remainder of 2024	$	27,468	$	961
2025	34,009		888
2026	34,014		654
2027	32,875		486
2028	26,618		157
2029	19,847		4
Thereafter	61,116		—
Total minimum lease payments	235,947		3,150
Less: amounts representing interest or imputed interest	(74,410)		(439)
Present value of lease liabilities	$	161,537	$	2,711

Managed Services Financing

For details on Managed Services Financing refer to Part I, Item 7, Section Purchase and Financing Options, sub-section Managed Services Financing and Part II, Item 8, Note 8 — Leases in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

We recognized $7.1 million and $7.3 million of product revenue, $2.3 million and $3.0 million of installation revenue, $1.3 million and $1.2 million of financing obligations, and $4.1 million and $5.5 million of operating lease right-of-use assets and operating lease liabilities from successful sale and leaseback transactions for the three months ended March 31, 2024 and 2023, respectively.

The recognized operating lease expense from successful sale and leaseback transactions for the three months ended March 31, 2024 and 2023, was $3.1 million and $2.1 million, respectively.

At March 31, 2024, future lease payments under the Managed Services Agreements financing obligations were as follows (in thousands):

	Financing Obligations
Remainder of 2024	$	32,615
2025	43,157
2026	38,595
2027	22,271
2028	12,369
Thereafter	26,773
Total minimum lease payments	175,780
Less: imputed interest	(90,616)
Present value of net minimum lease payments	85,164
Less: current financing obligations	(36,729)
Long-term financing obligations	$	48,435

The total financing obligations, as reflected in our condensed consolidated balance sheets, were $441.5 million and $444.8 million as of March 31, 2024 and December 31, 2023, 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.

Leases

Leases

Facilities, Energy Servers, and Vehicles

For the three months ended March 31, 2024 and 2023, rent expense for all occupied facilities was $5.6 million and $5.6 million, respectively.

Operating and financing lease right-of-use assets and lease liabilities as of March 31, 2024 and December 31, 2023, were as follows (in thousands):

	March 31,		December 31,
	2024		2023
Operating Leases:
Operating lease right-of-use assets, net 1, 2	$	138,941	$	139,732
Current operating lease liabilities	(20,513)		(20,245)
Non-current operating lease liabilities	(141,024)		(141,939)
Total operating lease liabilities	$	(161,537)	$	(162,184)
Finance Leases:
Finance lease right-of-use assets, net 2, 3, 4	$	2,508	$	2,708
Current finance lease liabilities5	(981)		(1,072)
Non-current finance lease liabilities6	(1,730)		(1,837)
Total finance lease liabilities	$	(2,711)	$	(2,909)
Total lease liabilities	$	(164,248)	$	(165,093)

1 These assets primarily include leases for facilities, 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 condensed consolidated balance sheets.

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

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

The components of our lease costs for the three months ended March 31, 2024 and 2023, were as follows (in thousands):

	Three Months Ended March 31,
	2024		2023
Operating lease costs	$	8,905	$	7,799
Financing lease costs:
Amortization of right-of-use assets	297		201
Interest on lease liabilities	66		62
Total financing lease costs	363		263
Short-term lease costs	9		444
Total lease costs	$	9,277	$	8,506

Weighted average remaining lease terms and discount rates for our leases as of March 31, 2024 and December 31, 2023, were as follows:

	March 31,		December 31,
	2024		2023
Weighted average remaining lease term:
Operating leases	7.2 years		7.4 years
Finance leases	3.2 years		3.2 years
Weighted average discount rate:
Operating leases	10.6	%	10.6	%
Finance leases	9.6	%	9.5	%

Future lease payments under lease agreements as of March 31, 2024 were as follows (in thousands):

	Operating Leases		Finance Leases
Remainder of 2024	$	27,468	$	961
2025	34,009		888
2026	34,014		654
2027	32,875		486
2028	26,618		157
2029	19,847		4
Thereafter	61,116		—
Total minimum lease payments	235,947		3,150
Less: amounts representing interest or imputed interest	(74,410)		(439)
Present value of lease liabilities	$	161,537	$	2,711

Managed Services Financing

For details on Managed Services Financing refer to Part I, Item 7, Section Purchase and Financing Options, sub-section Managed Services Financing and Part II, Item 8, Note 8 — Leases in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

We recognized $7.1 million and $7.3 million of product revenue, $2.3 million and $3.0 million of installation revenue, $1.3 million and $1.2 million of financing obligations, and $4.1 million and $5.5 million of operating lease right-of-use assets and operating lease liabilities from successful sale and leaseback transactions for the three months ended March 31, 2024 and 2023, respectively.

The recognized operating lease expense from successful sale and leaseback transactions for the three months ended March 31, 2024 and 2023, was $3.1 million and $2.1 million, respectively.

At March 31, 2024, future lease payments under the Managed Services Agreements financing obligations were as follows (in thousands):

	Financing Obligations
Remainder of 2024	$	32,615
2025	43,157
2026	38,595
2027	22,271
2028	12,369
Thereafter	26,773
Total minimum lease payments	175,780
Less: imputed interest	(90,616)
Present value of net minimum lease payments	85,164
Less: current financing obligations	(36,729)
Long-term financing obligations	$	48,435

The total financing obligations, as reflected in our condensed consolidated balance sheets, were $441.5 million and $444.8 million as of March 31, 2024 and December 31, 2023, 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.

Leases

Leases

Facilities, Energy Servers, and Vehicles

For the three months ended March 31, 2024 and 2023, rent expense for all occupied facilities was $5.6 million and $5.6 million, respectively.

Operating and financing lease right-of-use assets and lease liabilities as of March 31, 2024 and December 31, 2023, were as follows (in thousands):

	March 31,		December 31,
	2024		2023
Operating Leases:
Operating lease right-of-use assets, net 1, 2	$	138,941	$	139,732
Current operating lease liabilities	(20,513)		(20,245)
Non-current operating lease liabilities	(141,024)		(141,939)
Total operating lease liabilities	$	(161,537)	$	(162,184)
Finance Leases:
Finance lease right-of-use assets, net 2, 3, 4	$	2,508	$	2,708
Current finance lease liabilities5	(981)		(1,072)
Non-current finance lease liabilities6	(1,730)		(1,837)
Total finance lease liabilities	$	(2,711)	$	(2,909)
Total lease liabilities	$	(164,248)	$	(165,093)

1 These assets primarily include leases for facilities, 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 condensed consolidated balance sheets.

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

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

The components of our lease costs for the three months ended March 31, 2024 and 2023, were as follows (in thousands):

	Three Months Ended March 31,
	2024		2023
Operating lease costs	$	8,905	$	7,799
Financing lease costs:
Amortization of right-of-use assets	297		201
Interest on lease liabilities	66		62
Total financing lease costs	363		263
Short-term lease costs	9		444
Total lease costs	$	9,277	$	8,506

Weighted average remaining lease terms and discount rates for our leases as of March 31, 2024 and December 31, 2023, were as follows:

	March 31,		December 31,
	2024		2023
Weighted average remaining lease term:
Operating leases	7.2 years		7.4 years
Finance leases	3.2 years		3.2 years
Weighted average discount rate:
Operating leases	10.6	%	10.6	%
Finance leases	9.6	%	9.5	%

Future lease payments under lease agreements as of March 31, 2024 were as follows (in thousands):

	Operating Leases		Finance Leases
Remainder of 2024	$	27,468	$	961
2025	34,009		888
2026	34,014		654
2027	32,875		486
2028	26,618		157
2029	19,847		4
Thereafter	61,116		—
Total minimum lease payments	235,947		3,150
Less: amounts representing interest or imputed interest	(74,410)		(439)
Present value of lease liabilities	$	161,537	$	2,711

Managed Services Financing

For details on Managed Services Financing refer to Part I, Item 7, Section Purchase and Financing Options, sub-section Managed Services Financing and Part II, Item 8, Note 8 — Leases in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

We recognized $7.1 million and $7.3 million of product revenue, $2.3 million and $3.0 million of installation revenue, $1.3 million and $1.2 million of financing obligations, and $4.1 million and $5.5 million of operating lease right-of-use assets and operating lease liabilities from successful sale and leaseback transactions for the three months ended March 31, 2024 and 2023, respectively.

The recognized operating lease expense from successful sale and leaseback transactions for the three months ended March 31, 2024 and 2023, was $3.1 million and $2.1 million, respectively.

At March 31, 2024, future lease payments under the Managed Services Agreements financing obligations were as follows (in thousands):

	Financing Obligations
Remainder of 2024	$	32,615
2025	43,157
2026	38,595
2027	22,271
2028	12,369
Thereafter	26,773
Total minimum lease payments	175,780
Less: imputed interest	(90,616)
Present value of net minimum lease payments	85,164
Less: current financing obligations	(36,729)
Long-term financing obligations	$	48,435

The total financing obligations, as reflected in our condensed consolidated balance sheets, were $441.5 million and $444.8 million as of March 31, 2024 and December 31, 2023, 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.