Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

Leases

Facilities, Office Buildings and Vehicles

We lease most of our facilities, office buildings and vehicles under operating and finance leases that expire at various dates through February 2036. We lease various manufacturing facilities in Sunnyvale, Fremont and Mountain View, California. Our Sunnyvale manufacturing facility lease was entered into in April 2005 and expires in December 2023. In June 2020 and in March 2021, we signed leases in Fremont that will expire in 2027 and 2036, respectively, to replace our manufacturing facilities in Sunnyvale and Mountain View. These existing plants together comprise approximately 534,894 square feet of space. In June 2021, we extended the lease term for our headquarters in San Jose, California to 2031 and leased two additional floors. We lease additional office space as field offices in the United States and around the world including in China, India, Japan, the Republic of Korea, Taiwan and the United Arab Emirates.

Some of these 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 three months ended September 30, 2021 and 2020, rent expense for all occupied facilities was $4.4 million and $2.8 million, respectively. For the nine months ended September 30, 2021 and 2020, rent expense for all occupied facilities was $11.4 million and $6.8 million, respectively.

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 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 for facilities, office buildings and vehicles as of September 30, 2021 and December 31, 2020 were as follows (in thousands):

	September 30,		December 31,
	2021		2020
Assets:
Operating lease right-of-use assets, net 1, 2	$	70,055	$	35,621
Financing lease right-of-use assets, net 2, 3, 4	2,943		334
Total	$	72,998	$	35,955
Liabilities:
Current:
Operating lease liabilities	$	6,206	$	7,899
Financing lease liabilities 5	798		74
Total current lease liabilities	7,004		7,973
Non-current:
Operating lease liabilities	78,146		41,849
Financing lease liabilities 6	2,165		267
Total non-current lease liabilities	80,311		42,116
Total lease liabilities	$	87,315	$	50,089

1 These assets primarily include leases for facilities, office buildings 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, net of accumulated amortization.

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 facilities, office buildings and vehicles' lease costs for the three and nine months ended September 30, 2021 and 2020 were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating lease costs	$	3,925	$	2,683	$	10,620	$	6,280
Financing lease costs:
Amortization of financing lease right-of-use assets	214		15		1,096		32
Interest expense for financing lease liabilities	51		4		296		10
Total financing lease costs	265		19		1,392		42
Short-term lease costs	625		131		951		668
Total lease costs	$	4,815	$	2,833	$	12,963	$	6,990

Weighted average remaining lease terms and discount rates for our facilities, office buildings and vehicles as of September 30, 2021 and December 31, 2020 were as follows:

	September 30,		December 31,
	2021		2020
Remaining lease term (years):
Operating leases	9.3 years		6.7 years
Finance leases	3.6 years		4.2 years
Discount rate:
Operating leases	9.3	%	8.7	%
Finance leases	7.6	%	7.0	%

Future lease payments under lease agreements for our facilities, office buildings, and vehicles as of September 30, 2021, were as follows (in thousands):

	Operating Leases		Finance Leases
Remainder of 2021	$	3,581	$	240
2022	13,076		960
2023	14,949		955
2024	13,455		782
2025	13,477		313
Thereafter	79,085		88
Total minimum lease payments	137,623		3,338
Less: amounts representing interest or imputed interest	(53,271)		(375)
Present value of lease liabilities	$	84,352	$	2,963

Managed Services and Portfolio Financings Through 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. Prior to our adoption of ASC 842 as of January 1, 2020, such arrangements with customers that qualified as leases were classified as either sales-type leases or operating leases. For all pre-existing Managed Services Financings or Portfolio Financings through PPA Entities, we have carried over the accounting classifications for those transactions and continue to account for such transactions as either sales-type leases or operating leases under ASC 842. Customer arrangements under Managed Services and Portfolio Financings through PPA Entities entered into after January 1, 2021 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 PPA Entities include non-cancellable lease terms, during which terms the majority of our investment in Energy Servers under lease are typically recovered. We mitigate remaining residual value risk of its Energy Servers through its provision of maintenance on the Energy Servers during the lease term and through insurance whose 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 condensed consolidated balance sheets. These financing obligations are included in each agreements' contract value and are recognized as short-term or long-term liabilities based on the estimated payment dates. The lease agreements expire on various dates through 2034. For successful sale-and-leaseback transactions, we recorded right-of-use assets and lease liabilities and recorded lease expense over the lease term. The recognized lease expense has been immaterial.

At September 30, 2021, future lease payments under the Managed Services financing obligations and the sublease payments from the customers under the related operating leases were as follows (in thousands):

	Financing Obligations		Sublease Payments1
Remainder of 2021	$	10,412	$	(10,412)
2022	42,265		(42,265)
2023	43,223		(43,223)
2024	41,141		(41,141)
2025	40,106		(40,106)
Thereafter	90,023		(90,023)
Total lease payments	267,170		$	(267,170)
Less: imputed interest	(154,762)
Total lease obligations	112,408
Less: current obligations	(14,260)
Long-term lease obligations	$	98,148

1 Sublease Payments primarily represents the fees received by the bank from our customer for the electricity generated by our Energy Servers leased under our Managed Services and other similar arrangements, which also pay down our financing obligation to the bank.

The long-term financing obligations, as reflected in our condensed consolidated balance sheets, were $456.3 million and $460.0 million as of September 30, 2021 and December 31, 2020, respectively. The difference between these obligations and the principal obligations in the table above will be offset against the carrying value of the related Energy Servers at the end of the lease and the remainder recognized as a gain at that point.

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

The components of our aggregate net investment in sales-type leases under our Portfolio Financings through PPA entities consisted of the following (in thousands):

	September 30,		December 31,
	2021		2020
Lease payment receivables, net1	$	45,784	$	49,806
Estimated residual value of leased assets (unguaranteed)	890		890
Net investment in sales-type leases	46,674		50,696
Less: current portion	(5,693)		(5,428)
Non-current portion of net investment in sales-type leases	$	40,981	$	45,268

1 Net of current estimated credit losses of approximately $0.1 million as of September 30, 2021 and December 31, 2020.

As of September 30, 2021, the future scheduled customer payments from sales-type leases were as follows (in thousands):

	Future minimum lease payments
Remainder of 2021	$	1,494
2022	6,110
2023	6,435
2024	6,797
2025	7,125
Thereafter	19,176
Total undiscounted cash flows	47,137
Less: imputed interest	(1,302)
Present value of lease payments1	$	45,835
1 Amount comprises a current and long-term portion of lease receivables of $5.7 million and $41.0 million, respectively, after giving effect to a $0.1 million current expected credit loss reserve on the long-term portion, which is reflected as a component of the net investment in sales-type leases presented in our condensed consolidated statement of financial position as customer financing receivables.

Future estimated operating lease payments we expect to receive from Portfolio Financing arrangements through PPA Entities as of September 30, 2021, were as follows (in thousands):

	Operating Leases
Remainder of 2021	$	10,850
2022	44,205
2023	45,290
2024	46,533
2025	47,553
Thereafter	264,018
Total lease payments	$	458,449

Leases

Leases

Facilities, Office Buildings and Vehicles

We lease most of our facilities, office buildings and vehicles under operating and finance leases that expire at various dates through February 2036. We lease various manufacturing facilities in Sunnyvale, Fremont and Mountain View, California. Our Sunnyvale manufacturing facility lease was entered into in April 2005 and expires in December 2023. In June 2020 and in March 2021, we signed leases in Fremont that will expire in 2027 and 2036, respectively, to replace our manufacturing facilities in Sunnyvale and Mountain View. These existing plants together comprise approximately 534,894 square feet of space. In June 2021, we extended the lease term for our headquarters in San Jose, California to 2031 and leased two additional floors. We lease additional office space as field offices in the United States and around the world including in China, India, Japan, the Republic of Korea, Taiwan and the United Arab Emirates.

Some of these 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 three months ended September 30, 2021 and 2020, rent expense for all occupied facilities was $4.4 million and $2.8 million, respectively. For the nine months ended September 30, 2021 and 2020, rent expense for all occupied facilities was $11.4 million and $6.8 million, respectively.

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 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 for facilities, office buildings and vehicles as of September 30, 2021 and December 31, 2020 were as follows (in thousands):

	September 30,		December 31,
	2021		2020
Assets:
Operating lease right-of-use assets, net 1, 2	$	70,055	$	35,621
Financing lease right-of-use assets, net 2, 3, 4	2,943		334
Total	$	72,998	$	35,955
Liabilities:
Current:
Operating lease liabilities	$	6,206	$	7,899
Financing lease liabilities 5	798		74
Total current lease liabilities	7,004		7,973
Non-current:
Operating lease liabilities	78,146		41,849
Financing lease liabilities 6	2,165		267
Total non-current lease liabilities	80,311		42,116
Total lease liabilities	$	87,315	$	50,089

1 These assets primarily include leases for facilities, office buildings 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, net of accumulated amortization.

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 facilities, office buildings and vehicles' lease costs for the three and nine months ended September 30, 2021 and 2020 were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating lease costs	$	3,925	$	2,683	$	10,620	$	6,280
Financing lease costs:
Amortization of financing lease right-of-use assets	214		15		1,096		32
Interest expense for financing lease liabilities	51		4		296		10
Total financing lease costs	265		19		1,392		42
Short-term lease costs	625		131		951		668
Total lease costs	$	4,815	$	2,833	$	12,963	$	6,990

Weighted average remaining lease terms and discount rates for our facilities, office buildings and vehicles as of September 30, 2021 and December 31, 2020 were as follows:

	September 30,		December 31,
	2021		2020
Remaining lease term (years):
Operating leases	9.3 years		6.7 years
Finance leases	3.6 years		4.2 years
Discount rate:
Operating leases	9.3	%	8.7	%
Finance leases	7.6	%	7.0	%

Future lease payments under lease agreements for our facilities, office buildings, and vehicles as of September 30, 2021, were as follows (in thousands):

	Operating Leases		Finance Leases
Remainder of 2021	$	3,581	$	240
2022	13,076		960
2023	14,949		955
2024	13,455		782
2025	13,477		313
Thereafter	79,085		88
Total minimum lease payments	137,623		3,338
Less: amounts representing interest or imputed interest	(53,271)		(375)
Present value of lease liabilities	$	84,352	$	2,963

Managed Services and Portfolio Financings Through 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. Prior to our adoption of ASC 842 as of January 1, 2020, such arrangements with customers that qualified as leases were classified as either sales-type leases or operating leases. For all pre-existing Managed Services Financings or Portfolio Financings through PPA Entities, we have carried over the accounting classifications for those transactions and continue to account for such transactions as either sales-type leases or operating leases under ASC 842. Customer arrangements under Managed Services and Portfolio Financings through PPA Entities entered into after January 1, 2021 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 PPA Entities include non-cancellable lease terms, during which terms the majority of our investment in Energy Servers under lease are typically recovered. We mitigate remaining residual value risk of its Energy Servers through its provision of maintenance on the Energy Servers during the lease term and through insurance whose 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 condensed consolidated balance sheets. These financing obligations are included in each agreements' contract value and are recognized as short-term or long-term liabilities based on the estimated payment dates. The lease agreements expire on various dates through 2034. For successful sale-and-leaseback transactions, we recorded right-of-use assets and lease liabilities and recorded lease expense over the lease term. The recognized lease expense has been immaterial.

At September 30, 2021, future lease payments under the Managed Services financing obligations and the sublease payments from the customers under the related operating leases were as follows (in thousands):

	Financing Obligations		Sublease Payments1
Remainder of 2021	$	10,412	$	(10,412)
2022	42,265		(42,265)
2023	43,223		(43,223)
2024	41,141		(41,141)
2025	40,106		(40,106)
Thereafter	90,023		(90,023)
Total lease payments	267,170		$	(267,170)
Less: imputed interest	(154,762)
Total lease obligations	112,408
Less: current obligations	(14,260)
Long-term lease obligations	$	98,148

1 Sublease Payments primarily represents the fees received by the bank from our customer for the electricity generated by our Energy Servers leased under our Managed Services and other similar arrangements, which also pay down our financing obligation to the bank.

The long-term financing obligations, as reflected in our condensed consolidated balance sheets, were $456.3 million and $460.0 million as of September 30, 2021 and December 31, 2020, respectively. The difference between these obligations and the principal obligations in the table above will be offset against the carrying value of the related Energy Servers at the end of the lease and the remainder recognized as a gain at that point.

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

The components of our aggregate net investment in sales-type leases under our Portfolio Financings through PPA entities consisted of the following (in thousands):

	September 30,		December 31,
	2021		2020
Lease payment receivables, net1	$	45,784	$	49,806
Estimated residual value of leased assets (unguaranteed)	890		890
Net investment in sales-type leases	46,674		50,696
Less: current portion	(5,693)		(5,428)
Non-current portion of net investment in sales-type leases	$	40,981	$	45,268

1 Net of current estimated credit losses of approximately $0.1 million as of September 30, 2021 and December 31, 2020.

As of September 30, 2021, the future scheduled customer payments from sales-type leases were as follows (in thousands):

	Future minimum lease payments
Remainder of 2021	$	1,494
2022	6,110
2023	6,435
2024	6,797
2025	7,125
Thereafter	19,176
Total undiscounted cash flows	47,137
Less: imputed interest	(1,302)
Present value of lease payments1	$	45,835
1 Amount comprises a current and long-term portion of lease receivables of $5.7 million and $41.0 million, respectively, after giving effect to a $0.1 million current expected credit loss reserve on the long-term portion, which is reflected as a component of the net investment in sales-type leases presented in our condensed consolidated statement of financial position as customer financing receivables.

Future estimated operating lease payments we expect to receive from Portfolio Financing arrangements through PPA Entities as of September 30, 2021, were as follows (in thousands):

	Operating Leases
Remainder of 2021	$	10,850
2022	44,205
2023	45,290
2024	46,533
2025	47,553
Thereafter	264,018
Total lease payments	$	458,449

Leases

Leases

Facilities, Office Buildings and Vehicles

We lease most of our facilities, office buildings and vehicles under operating and finance leases that expire at various dates through February 2036. We lease various manufacturing facilities in Sunnyvale, Fremont and Mountain View, California. Our Sunnyvale manufacturing facility lease was entered into in April 2005 and expires in December 2023. In June 2020 and in March 2021, we signed leases in Fremont that will expire in 2027 and 2036, respectively, to replace our manufacturing facilities in Sunnyvale and Mountain View. These existing plants together comprise approximately 534,894 square feet of space. In June 2021, we extended the lease term for our headquarters in San Jose, California to 2031 and leased two additional floors. We lease additional office space as field offices in the United States and around the world including in China, India, Japan, the Republic of Korea, Taiwan and the United Arab Emirates.

Some of these 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 three months ended September 30, 2021 and 2020, rent expense for all occupied facilities was $4.4 million and $2.8 million, respectively. For the nine months ended September 30, 2021 and 2020, rent expense for all occupied facilities was $11.4 million and $6.8 million, respectively.

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 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 for facilities, office buildings and vehicles as of September 30, 2021 and December 31, 2020 were as follows (in thousands):

	September 30,		December 31,
	2021		2020
Assets:
Operating lease right-of-use assets, net 1, 2	$	70,055	$	35,621
Financing lease right-of-use assets, net 2, 3, 4	2,943		334
Total	$	72,998	$	35,955
Liabilities:
Current:
Operating lease liabilities	$	6,206	$	7,899
Financing lease liabilities 5	798		74
Total current lease liabilities	7,004		7,973
Non-current:
Operating lease liabilities	78,146		41,849
Financing lease liabilities 6	2,165		267
Total non-current lease liabilities	80,311		42,116
Total lease liabilities	$	87,315	$	50,089

1 These assets primarily include leases for facilities, office buildings 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, net of accumulated amortization.

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 facilities, office buildings and vehicles' lease costs for the three and nine months ended September 30, 2021 and 2020 were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating lease costs	$	3,925	$	2,683	$	10,620	$	6,280
Financing lease costs:
Amortization of financing lease right-of-use assets	214		15		1,096		32
Interest expense for financing lease liabilities	51		4		296		10
Total financing lease costs	265		19		1,392		42
Short-term lease costs	625		131		951		668
Total lease costs	$	4,815	$	2,833	$	12,963	$	6,990

Weighted average remaining lease terms and discount rates for our facilities, office buildings and vehicles as of September 30, 2021 and December 31, 2020 were as follows:

	September 30,		December 31,
	2021		2020
Remaining lease term (years):
Operating leases	9.3 years		6.7 years
Finance leases	3.6 years		4.2 years
Discount rate:
Operating leases	9.3	%	8.7	%
Finance leases	7.6	%	7.0	%

Future lease payments under lease agreements for our facilities, office buildings, and vehicles as of September 30, 2021, were as follows (in thousands):

	Operating Leases		Finance Leases
Remainder of 2021	$	3,581	$	240
2022	13,076		960
2023	14,949		955
2024	13,455		782
2025	13,477		313
Thereafter	79,085		88
Total minimum lease payments	137,623		3,338
Less: amounts representing interest or imputed interest	(53,271)		(375)
Present value of lease liabilities	$	84,352	$	2,963

Managed Services and Portfolio Financings Through 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. Prior to our adoption of ASC 842 as of January 1, 2020, such arrangements with customers that qualified as leases were classified as either sales-type leases or operating leases. For all pre-existing Managed Services Financings or Portfolio Financings through PPA Entities, we have carried over the accounting classifications for those transactions and continue to account for such transactions as either sales-type leases or operating leases under ASC 842. Customer arrangements under Managed Services and Portfolio Financings through PPA Entities entered into after January 1, 2021 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 PPA Entities include non-cancellable lease terms, during which terms the majority of our investment in Energy Servers under lease are typically recovered. We mitigate remaining residual value risk of its Energy Servers through its provision of maintenance on the Energy Servers during the lease term and through insurance whose 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 condensed consolidated balance sheets. These financing obligations are included in each agreements' contract value and are recognized as short-term or long-term liabilities based on the estimated payment dates. The lease agreements expire on various dates through 2034. For successful sale-and-leaseback transactions, we recorded right-of-use assets and lease liabilities and recorded lease expense over the lease term. The recognized lease expense has been immaterial.

At September 30, 2021, future lease payments under the Managed Services financing obligations and the sublease payments from the customers under the related operating leases were as follows (in thousands):

	Financing Obligations		Sublease Payments1
Remainder of 2021	$	10,412	$	(10,412)
2022	42,265		(42,265)
2023	43,223		(43,223)
2024	41,141		(41,141)
2025	40,106		(40,106)
Thereafter	90,023		(90,023)
Total lease payments	267,170		$	(267,170)
Less: imputed interest	(154,762)
Total lease obligations	112,408
Less: current obligations	(14,260)
Long-term lease obligations	$	98,148

1 Sublease Payments primarily represents the fees received by the bank from our customer for the electricity generated by our Energy Servers leased under our Managed Services and other similar arrangements, which also pay down our financing obligation to the bank.

The long-term financing obligations, as reflected in our condensed consolidated balance sheets, were $456.3 million and $460.0 million as of September 30, 2021 and December 31, 2020, respectively. The difference between these obligations and the principal obligations in the table above will be offset against the carrying value of the related Energy Servers at the end of the lease and the remainder recognized as a gain at that point.

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

The components of our aggregate net investment in sales-type leases under our Portfolio Financings through PPA entities consisted of the following (in thousands):

	September 30,		December 31,
	2021		2020
Lease payment receivables, net1	$	45,784	$	49,806
Estimated residual value of leased assets (unguaranteed)	890		890
Net investment in sales-type leases	46,674		50,696
Less: current portion	(5,693)		(5,428)
Non-current portion of net investment in sales-type leases	$	40,981	$	45,268

1 Net of current estimated credit losses of approximately $0.1 million as of September 30, 2021 and December 31, 2020.

As of September 30, 2021, the future scheduled customer payments from sales-type leases were as follows (in thousands):

	Future minimum lease payments
Remainder of 2021	$	1,494
2022	6,110
2023	6,435
2024	6,797
2025	7,125
Thereafter	19,176
Total undiscounted cash flows	47,137
Less: imputed interest	(1,302)
Present value of lease payments1	$	45,835
1 Amount comprises a current and long-term portion of lease receivables of $5.7 million and $41.0 million, respectively, after giving effect to a $0.1 million current expected credit loss reserve on the long-term portion, which is reflected as a component of the net investment in sales-type leases presented in our condensed consolidated statement of financial position as customer financing receivables.

Future estimated operating lease payments we expect to receive from Portfolio Financing arrangements through PPA Entities as of September 30, 2021, were as follows (in thousands):

	Operating Leases
Remainder of 2021	$	10,850
2022	44,205
2023	45,290
2024	46,533
2025	47,553
Thereafter	264,018
Total lease payments	$	458,449

Leases

Leases

Facilities, Office Buildings and Vehicles

We lease most of our facilities, office buildings and vehicles under operating and finance leases that expire at various dates through February 2036. We lease various manufacturing facilities in Sunnyvale, Fremont and Mountain View, California. Our Sunnyvale manufacturing facility lease was entered into in April 2005 and expires in December 2023. In June 2020 and in March 2021, we signed leases in Fremont that will expire in 2027 and 2036, respectively, to replace our manufacturing facilities in Sunnyvale and Mountain View. These existing plants together comprise approximately 534,894 square feet of space. In June 2021, we extended the lease term for our headquarters in San Jose, California to 2031 and leased two additional floors. We lease additional office space as field offices in the United States and around the world including in China, India, Japan, the Republic of Korea, Taiwan and the United Arab Emirates.

Some of these 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 three months ended September 30, 2021 and 2020, rent expense for all occupied facilities was $4.4 million and $2.8 million, respectively. For the nine months ended September 30, 2021 and 2020, rent expense for all occupied facilities was $11.4 million and $6.8 million, respectively.

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 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 for facilities, office buildings and vehicles as of September 30, 2021 and December 31, 2020 were as follows (in thousands):

	September 30,		December 31,
	2021		2020
Assets:
Operating lease right-of-use assets, net 1, 2	$	70,055	$	35,621
Financing lease right-of-use assets, net 2, 3, 4	2,943		334
Total	$	72,998	$	35,955
Liabilities:
Current:
Operating lease liabilities	$	6,206	$	7,899
Financing lease liabilities 5	798		74
Total current lease liabilities	7,004		7,973
Non-current:
Operating lease liabilities	78,146		41,849
Financing lease liabilities 6	2,165		267
Total non-current lease liabilities	80,311		42,116
Total lease liabilities	$	87,315	$	50,089

1 These assets primarily include leases for facilities, office buildings 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, net of accumulated amortization.

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 facilities, office buildings and vehicles' lease costs for the three and nine months ended September 30, 2021 and 2020 were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating lease costs	$	3,925	$	2,683	$	10,620	$	6,280
Financing lease costs:
Amortization of financing lease right-of-use assets	214		15		1,096		32
Interest expense for financing lease liabilities	51		4		296		10
Total financing lease costs	265		19		1,392		42
Short-term lease costs	625		131		951		668
Total lease costs	$	4,815	$	2,833	$	12,963	$	6,990

Weighted average remaining lease terms and discount rates for our facilities, office buildings and vehicles as of September 30, 2021 and December 31, 2020 were as follows:

	September 30,		December 31,
	2021		2020
Remaining lease term (years):
Operating leases	9.3 years		6.7 years
Finance leases	3.6 years		4.2 years
Discount rate:
Operating leases	9.3	%	8.7	%
Finance leases	7.6	%	7.0	%

Future lease payments under lease agreements for our facilities, office buildings, and vehicles as of September 30, 2021, were as follows (in thousands):

	Operating Leases		Finance Leases
Remainder of 2021	$	3,581	$	240
2022	13,076		960
2023	14,949		955
2024	13,455		782
2025	13,477		313
Thereafter	79,085		88
Total minimum lease payments	137,623		3,338
Less: amounts representing interest or imputed interest	(53,271)		(375)
Present value of lease liabilities	$	84,352	$	2,963

Managed Services and Portfolio Financings Through 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. Prior to our adoption of ASC 842 as of January 1, 2020, such arrangements with customers that qualified as leases were classified as either sales-type leases or operating leases. For all pre-existing Managed Services Financings or Portfolio Financings through PPA Entities, we have carried over the accounting classifications for those transactions and continue to account for such transactions as either sales-type leases or operating leases under ASC 842. Customer arrangements under Managed Services and Portfolio Financings through PPA Entities entered into after January 1, 2021 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 PPA Entities include non-cancellable lease terms, during which terms the majority of our investment in Energy Servers under lease are typically recovered. We mitigate remaining residual value risk of its Energy Servers through its provision of maintenance on the Energy Servers during the lease term and through insurance whose 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 condensed consolidated balance sheets. These financing obligations are included in each agreements' contract value and are recognized as short-term or long-term liabilities based on the estimated payment dates. The lease agreements expire on various dates through 2034. For successful sale-and-leaseback transactions, we recorded right-of-use assets and lease liabilities and recorded lease expense over the lease term. The recognized lease expense has been immaterial.

At September 30, 2021, future lease payments under the Managed Services financing obligations and the sublease payments from the customers under the related operating leases were as follows (in thousands):

	Financing Obligations		Sublease Payments1
Remainder of 2021	$	10,412	$	(10,412)
2022	42,265		(42,265)
2023	43,223		(43,223)
2024	41,141		(41,141)
2025	40,106		(40,106)
Thereafter	90,023		(90,023)
Total lease payments	267,170		$	(267,170)
Less: imputed interest	(154,762)
Total lease obligations	112,408
Less: current obligations	(14,260)
Long-term lease obligations	$	98,148

1 Sublease Payments primarily represents the fees received by the bank from our customer for the electricity generated by our Energy Servers leased under our Managed Services and other similar arrangements, which also pay down our financing obligation to the bank.

The long-term financing obligations, as reflected in our condensed consolidated balance sheets, were $456.3 million and $460.0 million as of September 30, 2021 and December 31, 2020, respectively. The difference between these obligations and the principal obligations in the table above will be offset against the carrying value of the related Energy Servers at the end of the lease and the remainder recognized as a gain at that point.

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

The components of our aggregate net investment in sales-type leases under our Portfolio Financings through PPA entities consisted of the following (in thousands):

	September 30,		December 31,
	2021		2020
Lease payment receivables, net1	$	45,784	$	49,806
Estimated residual value of leased assets (unguaranteed)	890		890
Net investment in sales-type leases	46,674		50,696
Less: current portion	(5,693)		(5,428)
Non-current portion of net investment in sales-type leases	$	40,981	$	45,268

1 Net of current estimated credit losses of approximately $0.1 million as of September 30, 2021 and December 31, 2020.

As of September 30, 2021, the future scheduled customer payments from sales-type leases were as follows (in thousands):

	Future minimum lease payments
Remainder of 2021	$	1,494
2022	6,110
2023	6,435
2024	6,797
2025	7,125
Thereafter	19,176
Total undiscounted cash flows	47,137
Less: imputed interest	(1,302)
Present value of lease payments1	$	45,835
1 Amount comprises a current and long-term portion of lease receivables of $5.7 million and $41.0 million, respectively, after giving effect to a $0.1 million current expected credit loss reserve on the long-term portion, which is reflected as a component of the net investment in sales-type leases presented in our condensed consolidated statement of financial position as customer financing receivables.

Future estimated operating lease payments we expect to receive from Portfolio Financing arrangements through PPA Entities as of September 30, 2021, were as follows (in thousands):

	Operating Leases
Remainder of 2021	$	10,850
2022	44,205
2023	45,290
2024	46,533
2025	47,553
Thereafter	264,018
Total lease payments	$	458,449