Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Leases

Leases

Facilities, Energy Servers, and Vehicles

For the three and six months ended June 30, 2022, rent expense for all occupied facilities was $4.7 million and $9.2 million, respectively. For the three and six months ended June 30, 2021, rent expense for all occupied facilities was $3.8 million and $7.0 million, respectively.

Operating and finance lease right-of-use assets and lease liabilities for facilities, Energy Servers, and vehicles as of June 30, 2022 and December 31, 2021 were as follows (in thousands):

	June 30,		December 31,
	2022		2021
Operating Leases:
Operating lease right-of-use assets, net 1, 2	$	110,362	$	106,660
Current operating lease liabilities	(12,581)		(13,101)
Non-current operating lease liabilities	(118,291)		(106,187)
Total operating lease liabilities	$	(130,872)	$	(119,288)
Finance Leases:
Finance lease right-of-use assets, net 2, 3, 4	$	2,614	$	2,944
Current finance lease liabilities	(924)		(863)
Non-current finance lease liabilities	(1,876)		(2,157)
Total finance lease liabilities	$	(2,800)	$	(3,020)
Total lease liabilities	$	(133,672)	$	(122,308)

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 sheet.

The components of our facilities, Energy Servers, and vehicles' lease costs for the three and six months ended June 30, 2022 and 2021 were as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Operating lease costs	$	6,049	$	3,743	$	11,885	$	6,757
Finance lease costs:
Amortization of finance lease right-of-use assets	263		174		521		881
Interest expense for finance lease liabilities	52		46		105		244
Total finance lease costs	315		220		626		1,125
Short-term lease costs	167		169		241		341
Total lease costs	$	6,531	$	4,132	$	12,752	$	8,223

Weighted average remaining lease terms and discount rates for our facilities, Energy Servers and vehicles as of June 30, 2022 and December 31, 2021 were as follows:

	June 30,		December 31,
	2022		2021
Weighted average remaining lease term:
Operating leases	9.2 years		8.9 years
Finance leases	3.3 years		3.5 years
Weighted average discount rate:
Operating leases	9.8	%	9.6	%
Finance leases	7.7	%	7.6	%

Future lease payments under lease agreements for our facilities, Energy Servers and vehicles as of June 30, 2022 were as follows (in thousands):

	Operating Leases		Finance Leases
Remainder of 2022	$	9,456	$	509
2023	19,496		1,013
2024	18,007		840
2025	18,246		369
2026	17,853		139
Thereafter	76,434		32
Total minimum lease payments	159,492		2,902
Less: amounts representing interest or imputed interest	(28,620)		(102)
Present value of lease liabilities	$	130,872	$	2,800

Managed Services and Portfolio Financings Through PPA Entities

At June 30, 2022, future lease payments under the Managed Services Agreements financing obligations were as follows (in thousands):

	Financing Obligations
Remainder of 2022	$	21,687
2023	44,041
2024	41,967
2025	40,939
2026	36,339
Thereafter	55,427
Total minimum lease payments	240,400
Less: imputed interest	(134,902)
Present value of net minimum lease payments	105,498
Less: current financing obligations	(16,159)
Long-term financing obligations	$	89,339

The long-term financing obligations, as reflected in our condensed consolidated balance sheets, were $447.6 million and $461.9 million as of June 30, 2022 and December 31, 2021, 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

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

	June 30,		December 31,
	2022		2021
Lease payment receivables, net1	$	—	$	44,378
Estimated residual value of leased assets (unguaranteed)	—		890
Net investment in sales-type leases	—		45,268
Less: current portion	—		(5,784)
Non-current portion of net investment in sales-type leases	$	—	$	39,484

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

As of June 30, 2022, there was no net investment in sales-type leases as a result of PPA IIIa Repowering. Please refer to Note 11 - Portfolio Financing for details.

As of June 30, 2022, future estimated operating minimum lease payments we expect to receive from Portfolio Financing arrangements through PPA Entities were as follows (in thousands):

	Operating Leases
Remainder of 2022	$	20,237
2023	43,620
2024	45,571
2025	46,609
2026	47,757
Thereafter	213,233
Total minimum lease payments	$	417,027

Leases

Leases

Facilities, Energy Servers, and Vehicles

For the three and six months ended June 30, 2022, rent expense for all occupied facilities was $4.7 million and $9.2 million, respectively. For the three and six months ended June 30, 2021, rent expense for all occupied facilities was $3.8 million and $7.0 million, respectively.

Operating and finance lease right-of-use assets and lease liabilities for facilities, Energy Servers, and vehicles as of June 30, 2022 and December 31, 2021 were as follows (in thousands):

	June 30,		December 31,
	2022		2021
Operating Leases:
Operating lease right-of-use assets, net 1, 2	$	110,362	$	106,660
Current operating lease liabilities	(12,581)		(13,101)
Non-current operating lease liabilities	(118,291)		(106,187)
Total operating lease liabilities	$	(130,872)	$	(119,288)
Finance Leases:
Finance lease right-of-use assets, net 2, 3, 4	$	2,614	$	2,944
Current finance lease liabilities	(924)		(863)
Non-current finance lease liabilities	(1,876)		(2,157)
Total finance lease liabilities	$	(2,800)	$	(3,020)
Total lease liabilities	$	(133,672)	$	(122,308)

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 sheet.

The components of our facilities, Energy Servers, and vehicles' lease costs for the three and six months ended June 30, 2022 and 2021 were as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Operating lease costs	$	6,049	$	3,743	$	11,885	$	6,757
Finance lease costs:
Amortization of finance lease right-of-use assets	263		174		521		881
Interest expense for finance lease liabilities	52		46		105		244
Total finance lease costs	315		220		626		1,125
Short-term lease costs	167		169		241		341
Total lease costs	$	6,531	$	4,132	$	12,752	$	8,223

Weighted average remaining lease terms and discount rates for our facilities, Energy Servers and vehicles as of June 30, 2022 and December 31, 2021 were as follows:

	June 30,		December 31,
	2022		2021
Weighted average remaining lease term:
Operating leases	9.2 years		8.9 years
Finance leases	3.3 years		3.5 years
Weighted average discount rate:
Operating leases	9.8	%	9.6	%
Finance leases	7.7	%	7.6	%

Future lease payments under lease agreements for our facilities, Energy Servers and vehicles as of June 30, 2022 were as follows (in thousands):

	Operating Leases		Finance Leases
Remainder of 2022	$	9,456	$	509
2023	19,496		1,013
2024	18,007		840
2025	18,246		369
2026	17,853		139
Thereafter	76,434		32
Total minimum lease payments	159,492		2,902
Less: amounts representing interest or imputed interest	(28,620)		(102)
Present value of lease liabilities	$	130,872	$	2,800

Managed Services and Portfolio Financings Through PPA Entities

At June 30, 2022, future lease payments under the Managed Services Agreements financing obligations were as follows (in thousands):

	Financing Obligations
Remainder of 2022	$	21,687
2023	44,041
2024	41,967
2025	40,939
2026	36,339
Thereafter	55,427
Total minimum lease payments	240,400
Less: imputed interest	(134,902)
Present value of net minimum lease payments	105,498
Less: current financing obligations	(16,159)
Long-term financing obligations	$	89,339

The long-term financing obligations, as reflected in our condensed consolidated balance sheets, were $447.6 million and $461.9 million as of June 30, 2022 and December 31, 2021, 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

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

	June 30,		December 31,
	2022		2021
Lease payment receivables, net1	$	—	$	44,378
Estimated residual value of leased assets (unguaranteed)	—		890
Net investment in sales-type leases	—		45,268
Less: current portion	—		(5,784)
Non-current portion of net investment in sales-type leases	$	—	$	39,484

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

As of June 30, 2022, there was no net investment in sales-type leases as a result of PPA IIIa Repowering. Please refer to Note 11 - Portfolio Financing for details.

As of June 30, 2022, future estimated operating minimum lease payments we expect to receive from Portfolio Financing arrangements through PPA Entities were as follows (in thousands):

	Operating Leases
Remainder of 2022	$	20,237
2023	43,620
2024	45,571
2025	46,609
2026	47,757
Thereafter	213,233
Total minimum lease payments	$	417,027

Leases

Leases

Facilities, Energy Servers, and Vehicles

For the three and six months ended June 30, 2022, rent expense for all occupied facilities was $4.7 million and $9.2 million, respectively. For the three and six months ended June 30, 2021, rent expense for all occupied facilities was $3.8 million and $7.0 million, respectively.

Operating and finance lease right-of-use assets and lease liabilities for facilities, Energy Servers, and vehicles as of June 30, 2022 and December 31, 2021 were as follows (in thousands):

	June 30,		December 31,
	2022		2021
Operating Leases:
Operating lease right-of-use assets, net 1, 2	$	110,362	$	106,660
Current operating lease liabilities	(12,581)		(13,101)
Non-current operating lease liabilities	(118,291)		(106,187)
Total operating lease liabilities	$	(130,872)	$	(119,288)
Finance Leases:
Finance lease right-of-use assets, net 2, 3, 4	$	2,614	$	2,944
Current finance lease liabilities	(924)		(863)
Non-current finance lease liabilities	(1,876)		(2,157)
Total finance lease liabilities	$	(2,800)	$	(3,020)
Total lease liabilities	$	(133,672)	$	(122,308)

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 sheet.

The components of our facilities, Energy Servers, and vehicles' lease costs for the three and six months ended June 30, 2022 and 2021 were as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Operating lease costs	$	6,049	$	3,743	$	11,885	$	6,757
Finance lease costs:
Amortization of finance lease right-of-use assets	263		174		521		881
Interest expense for finance lease liabilities	52		46		105		244
Total finance lease costs	315		220		626		1,125
Short-term lease costs	167		169		241		341
Total lease costs	$	6,531	$	4,132	$	12,752	$	8,223

Weighted average remaining lease terms and discount rates for our facilities, Energy Servers and vehicles as of June 30, 2022 and December 31, 2021 were as follows:

	June 30,		December 31,
	2022		2021
Weighted average remaining lease term:
Operating leases	9.2 years		8.9 years
Finance leases	3.3 years		3.5 years
Weighted average discount rate:
Operating leases	9.8	%	9.6	%
Finance leases	7.7	%	7.6	%

Future lease payments under lease agreements for our facilities, Energy Servers and vehicles as of June 30, 2022 were as follows (in thousands):

	Operating Leases		Finance Leases
Remainder of 2022	$	9,456	$	509
2023	19,496		1,013
2024	18,007		840
2025	18,246		369
2026	17,853		139
Thereafter	76,434		32
Total minimum lease payments	159,492		2,902
Less: amounts representing interest or imputed interest	(28,620)		(102)
Present value of lease liabilities	$	130,872	$	2,800

Managed Services and Portfolio Financings Through PPA Entities

At June 30, 2022, future lease payments under the Managed Services Agreements financing obligations were as follows (in thousands):

	Financing Obligations
Remainder of 2022	$	21,687
2023	44,041
2024	41,967
2025	40,939
2026	36,339
Thereafter	55,427
Total minimum lease payments	240,400
Less: imputed interest	(134,902)
Present value of net minimum lease payments	105,498
Less: current financing obligations	(16,159)
Long-term financing obligations	$	89,339

The long-term financing obligations, as reflected in our condensed consolidated balance sheets, were $447.6 million and $461.9 million as of June 30, 2022 and December 31, 2021, 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

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

	June 30,		December 31,
	2022		2021
Lease payment receivables, net1	$	—	$	44,378
Estimated residual value of leased assets (unguaranteed)	—		890
Net investment in sales-type leases	—		45,268
Less: current portion	—		(5,784)
Non-current portion of net investment in sales-type leases	$	—	$	39,484

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

As of June 30, 2022, there was no net investment in sales-type leases as a result of PPA IIIa Repowering. Please refer to Note 11 - Portfolio Financing for details.

As of June 30, 2022, future estimated operating minimum lease payments we expect to receive from Portfolio Financing arrangements through PPA Entities were as follows (in thousands):

	Operating Leases
Remainder of 2022	$	20,237
2023	43,620
2024	45,571
2025	46,609
2026	47,757
Thereafter	213,233
Total minimum lease payments	$	417,027

Leases

Leases

Facilities, Energy Servers, and Vehicles

For the three and six months ended June 30, 2022, rent expense for all occupied facilities was $4.7 million and $9.2 million, respectively. For the three and six months ended June 30, 2021, rent expense for all occupied facilities was $3.8 million and $7.0 million, respectively.

Operating and finance lease right-of-use assets and lease liabilities for facilities, Energy Servers, and vehicles as of June 30, 2022 and December 31, 2021 were as follows (in thousands):

	June 30,		December 31,
	2022		2021
Operating Leases:
Operating lease right-of-use assets, net 1, 2	$	110,362	$	106,660
Current operating lease liabilities	(12,581)		(13,101)
Non-current operating lease liabilities	(118,291)		(106,187)
Total operating lease liabilities	$	(130,872)	$	(119,288)
Finance Leases:
Finance lease right-of-use assets, net 2, 3, 4	$	2,614	$	2,944
Current finance lease liabilities	(924)		(863)
Non-current finance lease liabilities	(1,876)		(2,157)
Total finance lease liabilities	$	(2,800)	$	(3,020)
Total lease liabilities	$	(133,672)	$	(122,308)

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 sheet.

The components of our facilities, Energy Servers, and vehicles' lease costs for the three and six months ended June 30, 2022 and 2021 were as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Operating lease costs	$	6,049	$	3,743	$	11,885	$	6,757
Finance lease costs:
Amortization of finance lease right-of-use assets	263		174		521		881
Interest expense for finance lease liabilities	52		46		105		244
Total finance lease costs	315		220		626		1,125
Short-term lease costs	167		169		241		341
Total lease costs	$	6,531	$	4,132	$	12,752	$	8,223

Weighted average remaining lease terms and discount rates for our facilities, Energy Servers and vehicles as of June 30, 2022 and December 31, 2021 were as follows:

	June 30,		December 31,
	2022		2021
Weighted average remaining lease term:
Operating leases	9.2 years		8.9 years
Finance leases	3.3 years		3.5 years
Weighted average discount rate:
Operating leases	9.8	%	9.6	%
Finance leases	7.7	%	7.6	%

Future lease payments under lease agreements for our facilities, Energy Servers and vehicles as of June 30, 2022 were as follows (in thousands):

	Operating Leases		Finance Leases
Remainder of 2022	$	9,456	$	509
2023	19,496		1,013
2024	18,007		840
2025	18,246		369
2026	17,853		139
Thereafter	76,434		32
Total minimum lease payments	159,492		2,902
Less: amounts representing interest or imputed interest	(28,620)		(102)
Present value of lease liabilities	$	130,872	$	2,800

Managed Services and Portfolio Financings Through PPA Entities

At June 30, 2022, future lease payments under the Managed Services Agreements financing obligations were as follows (in thousands):

	Financing Obligations
Remainder of 2022	$	21,687
2023	44,041
2024	41,967
2025	40,939
2026	36,339
Thereafter	55,427
Total minimum lease payments	240,400
Less: imputed interest	(134,902)
Present value of net minimum lease payments	105,498
Less: current financing obligations	(16,159)
Long-term financing obligations	$	89,339

The long-term financing obligations, as reflected in our condensed consolidated balance sheets, were $447.6 million and $461.9 million as of June 30, 2022 and December 31, 2021, 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

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

	June 30,		December 31,
	2022		2021
Lease payment receivables, net1	$	—	$	44,378
Estimated residual value of leased assets (unguaranteed)	—		890
Net investment in sales-type leases	—		45,268
Less: current portion	—		(5,784)
Non-current portion of net investment in sales-type leases	$	—	$	39,484

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

As of June 30, 2022, there was no net investment in sales-type leases as a result of PPA IIIa Repowering. Please refer to Note 11 - Portfolio Financing for details.

As of June 30, 2022, future estimated operating minimum lease payments we expect to receive from Portfolio Financing arrangements through PPA Entities were as follows (in thousands):

	Operating Leases
Remainder of 2022	$	20,237
2023	43,620
2024	45,571
2025	46,609
2026	47,757
Thereafter	213,233
Total minimum lease payments	$	417,027