LEASES

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Leases

NOTE 14 — LEASES

Our Driftwood Project 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 other land leases are classified as finance leases and include one or more options to extend the lease term for up to 69 years or to terminate the lease within seven years, at our sole discretion. We are reasonably certain that those options and termination rights will not be exercised, and we have, therefore, excluded 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 Condensed Consolidated Balance Sheets (in thousands):

Leases	Balance Sheets Classification	March 31, 2024		December 31, 2023
Right of use asset
Operating	Other non-current assets	$	11,985	$	12,814
Finance	Property, plant and equipment, net	125,308		126,225
Total leased assets		$	137,293	$	139,039
Liabilities
Current
Operating	Accrued and other liabilities	$	3,910	$	3,835
Finance	Accrued and other liabilities	891		875
Non-current
Operating	Other non-current liabilities	9,737		10,743
Finance	Finance lease liabilities	121,221		121,450
Total leased liabilities		$	135,759	$	136,903

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

	Three Months Ended March 31,
Lease costs	2024		2023
Operating lease cost	$	1,056	$	869
Finance lease cost
Amortization of lease assets	918		709
Interest on lease liabilities	2,410		1,948
Finance lease cost	3,328		2,657
Total lease cost	$	4,384	$	3,526

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

	March 31, 2024
Lease term and discount rate
Weighted average remaining lease term (years)
Operating lease	3.3
Finance lease	35.8
Weighted average discount rate
Operating lease	6.4	%
Finance lease	8.7	%

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

	Three Months Ended March 31,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	938	$	974
Operating cash flows from finance leases	2,226		807
Financing cash flows from finance leases	177		—

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 March 31, 2024 (in thousands):

	Operating		Finance
2024	$	3,508	$	7,869
2025	4,724		10,491
2026	4,758		10,491
2027	1,955		10,491
2028	275		10,491
After 2028	—		322,334
Total lease payments	$	15,220	$	372,167
Less: discount	1,572		250,055
Present value of lease liability	$	13,648	$	122,112

Leases

NOTE 14 — LEASES

Our Driftwood Project 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 other land leases are classified as finance leases and include one or more options to extend the lease term for up to 69 years or to terminate the lease within seven years, at our sole discretion. We are reasonably certain that those options and termination rights will not be exercised, and we have, therefore, excluded 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 Condensed Consolidated Balance Sheets (in thousands):

Leases	Balance Sheets Classification	March 31, 2024		December 31, 2023
Right of use asset
Operating	Other non-current assets	$	11,985	$	12,814
Finance	Property, plant and equipment, net	125,308		126,225
Total leased assets		$	137,293	$	139,039
Liabilities
Current
Operating	Accrued and other liabilities	$	3,910	$	3,835
Finance	Accrued and other liabilities	891		875
Non-current
Operating	Other non-current liabilities	9,737		10,743
Finance	Finance lease liabilities	121,221		121,450
Total leased liabilities		$	135,759	$	136,903

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

	Three Months Ended March 31,
Lease costs	2024		2023
Operating lease cost	$	1,056	$	869
Finance lease cost
Amortization of lease assets	918		709
Interest on lease liabilities	2,410		1,948
Finance lease cost	3,328		2,657
Total lease cost	$	4,384	$	3,526

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

	March 31, 2024
Lease term and discount rate
Weighted average remaining lease term (years)
Operating lease	3.3
Finance lease	35.8
Weighted average discount rate
Operating lease	6.4	%
Finance lease	8.7	%

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

	Three Months Ended March 31,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	938	$	974
Operating cash flows from finance leases	2,226		807
Financing cash flows from finance leases	177		—

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 March 31, 2024 (in thousands):

	Operating		Finance
2024	$	3,508	$	7,869
2025	4,724		10,491
2026	4,758		10,491
2027	1,955		10,491
2028	275		10,491
After 2028	—		322,334
Total lease payments	$	15,220	$	372,167
Less: discount	1,572		250,055
Present value of lease liability	$	13,648	$	122,112