LEASES

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

LEASES

NOTE 14 — LEASES

Our land leases are classified as finance leases and include one or more options to extend the lease term for up to 40 years, as well as to terminate the lease within five years, at our sole discretion. We are reasonably certain that those options will be exercised, and that our termination rights will not be exercised, and we have, therefore, included those assumptions within our right of use assets and corresponding lease liabilities. Our office space leases are classified as operating leases and include one or more options to extend the lease term up to 10 years, at our sole discretion. As we are not reasonably certain that those

options will be exercised, none are recognized as part of our right of use assets and lease liabilities. As none of our leases provide an implicit rate, we have determined our own discount rate.

The following table shows the classification and location of our right-of-use assets and lease liabilities on our Consolidated Balance Sheets (in thousands):

Leases	Consolidated Balance Sheets Classification	September 30, 2022		December 31, 2021
Right of use asset
Operating	Other non-current assets	$	13,932	$	10,166
Finance	Property, plant and equipment, net	57,002		57,883
Total leased assets		$	70,934	$	68,049
Liabilities
Current
Operating	Accrued and other liabilities	$	2,570	$	2,147
Finance	Accrued and other liabilities	138		132
Non-Current
Operating	Other non-current liabilities	12,771		9,563
Finance	Finance lease liabilities	49,998		50,103
Total leased liabilities		$	65,477	$	61,945

Lease costs recognized in our Consolidated Statements of Operations is summarized as follows (in thousands):

	Nine months ended
Lease costs	2022		2021
Operating lease cost	$	2,247	$	2,056
Finance lease cost
Amortization of lease assets	881		494
Interest on lease liabilities	2,983		1,908
Finance lease cost	$	3,864	$	2,402
Total lease cost	$	6,111	$	4,458

Other information about lease amounts recognized in our Consolidated Financial Statements is as follows:

	September 30, 2022
Lease term and discount rate
Weighted average remaining lease term (years)
Operating lease	4.8
Finance lease	48.7
Weighted average discount rate
Operating lease	6.2	%
Finance lease	9.4	%

The following table includes other quantitative information for our operating and finance leases (in thousands):

	Nine Months Ended September 30,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,545	$	2,173
Operating cash flows from finance leases	$	2,868	$	1,007
Financing cash flows from finance leases	$	1	$	1,862

The table below presents a maturity analysis of our lease liability on an undiscounted basis and reconciles those amounts to the present value of the lease liability as of September 30, 2022 (in thousands):

	Operating		Finance
2022	$	822	$	1,229
2023	3,579		4,111
2024	3,843		4,111
2025	3,886		4,111
2026	3,908		4,111
After 2026	1,936		182,222
Total lease payments	$	17,974	$	199,895
Less: discount	2,633		149,759
Present value of lease liability	$	15,341	$	50,136

LEASES

NOTE 14 — LEASES

Our land leases are classified as finance leases and include one or more options to extend the lease term for up to 40 years, as well as to terminate the lease within five years, at our sole discretion. We are reasonably certain that those options will be exercised, and that our termination rights will not be exercised, and we have, therefore, included those assumptions within our right of use assets and corresponding lease liabilities. Our office space leases are classified as operating leases and include one or more options to extend the lease term up to 10 years, at our sole discretion. As we are not reasonably certain that those

options will be exercised, none are recognized as part of our right of use assets and lease liabilities. As none of our leases provide an implicit rate, we have determined our own discount rate.

The following table shows the classification and location of our right-of-use assets and lease liabilities on our Consolidated Balance Sheets (in thousands):

Leases	Consolidated Balance Sheets Classification	September 30, 2022		December 31, 2021
Right of use asset
Operating	Other non-current assets	$	13,932	$	10,166
Finance	Property, plant and equipment, net	57,002		57,883
Total leased assets		$	70,934	$	68,049
Liabilities
Current
Operating	Accrued and other liabilities	$	2,570	$	2,147
Finance	Accrued and other liabilities	138		132
Non-Current
Operating	Other non-current liabilities	12,771		9,563
Finance	Finance lease liabilities	49,998		50,103
Total leased liabilities		$	65,477	$	61,945

Lease costs recognized in our Consolidated Statements of Operations is summarized as follows (in thousands):

	Nine months ended
Lease costs	2022		2021
Operating lease cost	$	2,247	$	2,056
Finance lease cost
Amortization of lease assets	881		494
Interest on lease liabilities	2,983		1,908
Finance lease cost	$	3,864	$	2,402
Total lease cost	$	6,111	$	4,458

Other information about lease amounts recognized in our Consolidated Financial Statements is as follows:

	September 30, 2022
Lease term and discount rate
Weighted average remaining lease term (years)
Operating lease	4.8
Finance lease	48.7
Weighted average discount rate
Operating lease	6.2	%
Finance lease	9.4	%

The following table includes other quantitative information for our operating and finance leases (in thousands):

	Nine Months Ended September 30,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,545	$	2,173
Operating cash flows from finance leases	$	2,868	$	1,007
Financing cash flows from finance leases	$	1	$	1,862

The table below presents a maturity analysis of our lease liability on an undiscounted basis and reconciles those amounts to the present value of the lease liability as of September 30, 2022 (in thousands):

	Operating		Finance
2022	$	822	$	1,229
2023	3,579		4,111
2024	3,843		4,111
2025	3,886		4,111
2026	3,908		4,111
After 2026	1,936		182,222
Total lease payments	$	17,974	$	199,895
Less: discount	2,633		149,759
Present value of lease liability	$	15,341	$	50,136