Leases

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Leases

Leases

Following is a summary of the weighted average remaining lease term and the weighted average discount rate for the Company’s leases:

	September 30, 2022		December 31, 2021
Weighted average remaining lease term:
Operating leases	7.5 years		8.3 years
Financing leases	4.6 years		12.5 years
Weighted average discount rate:
Operating leases	3.6	%	3.6	%
Financing leases	5.2	%	3.1	%

On March 17, 2022, the Company terminated its financing lease for the Snyder Production Center, which was scheduled to expire on December 31, 2035. See Note 2 for additional information on the lease termination.

Following is a summary of the Company’s leases within the condensed consolidated statements of operations:

	Third Quarter				First Nine Months
(in thousands)	2022		2021		2022		2021
Operating lease costs	$	7,750	$	6,828	$	22,389	$	19,647
Short-term and variable leases	3,731		4,561		11,006		12,932
Depreciation expense from financing leases	411		1,414		1,903		4,242
Interest expense on financing lease obligations	139		575		753		1,738
Total lease cost	$	12,031	$	13,378	$	36,051	$	38,559

The future minimum lease payments related to the Company’s leases include renewal options the Company has determined to be reasonably certain and exclude payments to landlords for real estate taxes and common area maintenance. Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of September 30, 2022:

(in thousands)	Operating Leases		Financing Leases
Remainder of 2022	$	7,160	$	678
2023	30,211		2,750
2024	25,409		2,808
2025	19,582		2,869
2026	18,332		1,233
Thereafter	68,457		1,304
Total minimum lease payments including interest	$	169,151	$	11,642
Less:  Amounts representing interest	23,069		1,273
Present value of minimum lease principal payments	146,082		10,369
Less:  Current portion of lease liabilities	26,465		2,259
Noncurrent portion of lease liabilities	$	119,617	$	8,110

Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of December 31, 2021:

(in thousands)	Operating Leases		Financing Leases
2022	$	26,026	$	7,145
2023	24,893		7,201
2024	20,639		7,396
2025	16,740		7,593
2026	15,575		6,100
Thereafter	65,695		49,728
Total minimum lease payments including interest	$	169,568	$	85,163
Less:  Amounts representing interest	25,474		14,097
Present value of minimum lease principal payments	144,094		71,066
Less:  Current portion of lease liabilities	22,048		6,060
Noncurrent portion of lease liabilities	$	122,046	$	65,006

Following is a summary of the Company’s leases within the condensed consolidated statements of cash flows:

	First Nine Months
(in thousands)	2022		2021
Cash flows from operating activities impact:
Operating leases	$	21,502	$	21,112
Interest payments on financing lease obligations	753		1,738
Total cash flows from operating activities impact	$	22,255	$	22,850
Cash flows from financing activities impact:
Principal payments on financing lease obligations	$	2,441	$	3,567
Total cash flows from financing activities impact	$	2,441	$	3,567

Subsequent to quarter-end, the Company entered into three operating lease commitments with lease terms of three years. These lease commitments are expected to commence during the fourth quarter of 2022. The additional lease liability associated with these lease commitments is expected to be approximately $3.8 million.

Leases

Leases

Following is a summary of the weighted average remaining lease term and the weighted average discount rate for the Company’s leases:

	September 30, 2022		December 31, 2021
Weighted average remaining lease term:
Operating leases	7.5 years		8.3 years
Financing leases	4.6 years		12.5 years
Weighted average discount rate:
Operating leases	3.6	%	3.6	%
Financing leases	5.2	%	3.1	%

On March 17, 2022, the Company terminated its financing lease for the Snyder Production Center, which was scheduled to expire on December 31, 2035. See Note 2 for additional information on the lease termination.

Following is a summary of the Company’s leases within the condensed consolidated statements of operations:

	Third Quarter				First Nine Months
(in thousands)	2022		2021		2022		2021
Operating lease costs	$	7,750	$	6,828	$	22,389	$	19,647
Short-term and variable leases	3,731		4,561		11,006		12,932
Depreciation expense from financing leases	411		1,414		1,903		4,242
Interest expense on financing lease obligations	139		575		753		1,738
Total lease cost	$	12,031	$	13,378	$	36,051	$	38,559

The future minimum lease payments related to the Company’s leases include renewal options the Company has determined to be reasonably certain and exclude payments to landlords for real estate taxes and common area maintenance. Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of September 30, 2022:

(in thousands)	Operating Leases		Financing Leases
Remainder of 2022	$	7,160	$	678
2023	30,211		2,750
2024	25,409		2,808
2025	19,582		2,869
2026	18,332		1,233
Thereafter	68,457		1,304
Total minimum lease payments including interest	$	169,151	$	11,642
Less:  Amounts representing interest	23,069		1,273
Present value of minimum lease principal payments	146,082		10,369
Less:  Current portion of lease liabilities	26,465		2,259
Noncurrent portion of lease liabilities	$	119,617	$	8,110

Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of December 31, 2021:

(in thousands)	Operating Leases		Financing Leases
2022	$	26,026	$	7,145
2023	24,893		7,201
2024	20,639		7,396
2025	16,740		7,593
2026	15,575		6,100
Thereafter	65,695		49,728
Total minimum lease payments including interest	$	169,568	$	85,163
Less:  Amounts representing interest	25,474		14,097
Present value of minimum lease principal payments	144,094		71,066
Less:  Current portion of lease liabilities	22,048		6,060
Noncurrent portion of lease liabilities	$	122,046	$	65,006

Following is a summary of the Company’s leases within the condensed consolidated statements of cash flows:

	First Nine Months
(in thousands)	2022		2021
Cash flows from operating activities impact:
Operating leases	$	21,502	$	21,112
Interest payments on financing lease obligations	753		1,738
Total cash flows from operating activities impact	$	22,255	$	22,850
Cash flows from financing activities impact:
Principal payments on financing lease obligations	$	2,441	$	3,567
Total cash flows from financing activities impact	$	2,441	$	3,567

Subsequent to quarter-end, the Company entered into three operating lease commitments with lease terms of three years. These lease commitments are expected to commence during the fourth quarter of 2022. The additional lease liability associated with these lease commitments is expected to be approximately $3.8 million.