Lease Obligations

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Lease Obligations

Lease Obligations

From time-to-time, the Company enters into non-cancelable leases for some of our facility, vehicle and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from one to six years, some of which may include options to extend the leases for up to five years, and some of which may include options to terminate the leases within one year. Currently, all the Company’s leases contain fixed payment terms. The Company may decide to cancel or terminate a lease before the end of its term, in which case we are typically liable to the lessor for the remaining lease payments under the term of the lease. Additionally, all of the Company's month-to-month leases are cancelable, by the Company or the lessor, at any time and are not included in our right-of-use asset or liability. At September 30, 2021, the Company had several leases with residual value guarantees. Typically, the Company has purchase options on the equipment underlying its long-term leases and many of its short-term rental arrangements. The Company may exercise some of these purchase options when the need for equipment is on-going and the purchase option price is attractive. Leases are accounted for as operating or finance leases, depending on the terms of the lease.

The following is a summary of the lease-related assets and liabilities recorded:

		September 30, 2021		December 31, 2020
(in thousands)	Classification on the Consolidated Balance Sheet
Assets
Operating lease right-of-use assets	Operating lease right-of-use assets	$	21,447	$	22,291
Finance lease right-of-use assets	Property and equipment, net of accumulated depreciation	—		390
Total right-of-use lease assets		$	21,447	$	22,681
Liabilities
Current
Operating lease obligations	Current portion of operating lease obligations	$	7,451	$	6,612
Finance lease obligations	Current portion of finance lease obligations	—		318
Total current obligations		7,451		6,930
Non-current
Operating lease obligations	Operating lease obligations, net of current maturities	14,015		15,730
Total non-current obligations		14,015		15,730
Total lease obligations		$	21,466	$	22,660

The following is a summary of the lease terms and discount rates:

	September 30, 2021		December 31, 2020
Weighted-average remaining lease term - finance leases	zero years		0.4 years
Weighted-average remaining lease term - operating leases	3.0 years		3.4 years
Weighted-average discount rate - finance leases	—	%	2.6	%
Weighted-average discount rate - operating leases	3.9	%	3.9	%

The following is a summary of certain information related to the lease costs for finance and operating leases:

(in thousands)	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Lease cost:
Finance lease cost:
Amortization of right-of-use assets	$	11	$	240	$	386	$	737
Interest on lease liabilities	—		7		—		27
Operating lease cost	2,515		2,327		7,474		6,875
Variable lease costs	78		106		233		259
Total lease cost	$	2,604	$	2,680	$	8,093	$	7,898

The following is a summary of other information and supplemental cash flow information related to finance and operating leases:

	Nine months ended September 30,
(in thousands)	2021		2020
Other information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	7,635	$	6,676
Right-of-use asset obtained in exchange for new operating lease obligations	$	5,687	$	5,592

The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets under operating leases, less imputed interest, as of September 30, 2021 were as follows:

(in thousands)	Operating Lease Obligations
Remainder of 2021	$	2,642
2022	9,430
2023	6,953
2024	3,847
2025	1,685
2026	977
Thereafter	10
Total minimum lease payments	25,544
Financing component	(4,078)
Net present value of minimum lease payments	21,466
Less: current portion of finance and operating lease obligations	(7,451)
Long-term finance and operating lease obligations	$	14,015

The financing component for operating lease obligations represents the effect of discounting the lease payments to their present value. As of September 30, 2021, the Company had no outstanding finance lease obligations.

Certain subsidiaries of the Company have operating leases for facilities from third party companies that are owned, in whole or part, by employees of the subsidiaries. The terms and rental rates of these leases are at market rental rates. As of September 30, 2021, the minimum lease payments required under these leases totaled $2.5 million, which are due over the next 2.8 years.

Lease Obligations

Lease Obligations

From time-to-time, the Company enters into non-cancelable leases for some of our facility, vehicle and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from one to six years, some of which may include options to extend the leases for up to five years, and some of which may include options to terminate the leases within one year. Currently, all the Company’s leases contain fixed payment terms. The Company may decide to cancel or terminate a lease before the end of its term, in which case we are typically liable to the lessor for the remaining lease payments under the term of the lease. Additionally, all of the Company's month-to-month leases are cancelable, by the Company or the lessor, at any time and are not included in our right-of-use asset or liability. At September 30, 2021, the Company had several leases with residual value guarantees. Typically, the Company has purchase options on the equipment underlying its long-term leases and many of its short-term rental arrangements. The Company may exercise some of these purchase options when the need for equipment is on-going and the purchase option price is attractive. Leases are accounted for as operating or finance leases, depending on the terms of the lease.

The following is a summary of the lease-related assets and liabilities recorded:

		September 30, 2021		December 31, 2020
(in thousands)	Classification on the Consolidated Balance Sheet
Assets
Operating lease right-of-use assets	Operating lease right-of-use assets	$	21,447	$	22,291
Finance lease right-of-use assets	Property and equipment, net of accumulated depreciation	—		390
Total right-of-use lease assets		$	21,447	$	22,681
Liabilities
Current
Operating lease obligations	Current portion of operating lease obligations	$	7,451	$	6,612
Finance lease obligations	Current portion of finance lease obligations	—		318
Total current obligations		7,451		6,930
Non-current
Operating lease obligations	Operating lease obligations, net of current maturities	14,015		15,730
Total non-current obligations		14,015		15,730
Total lease obligations		$	21,466	$	22,660

The following is a summary of the lease terms and discount rates:

	September 30, 2021		December 31, 2020
Weighted-average remaining lease term - finance leases	zero years		0.4 years
Weighted-average remaining lease term - operating leases	3.0 years		3.4 years
Weighted-average discount rate - finance leases	—	%	2.6	%
Weighted-average discount rate - operating leases	3.9	%	3.9	%

The following is a summary of certain information related to the lease costs for finance and operating leases:

(in thousands)	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Lease cost:
Finance lease cost:
Amortization of right-of-use assets	$	11	$	240	$	386	$	737
Interest on lease liabilities	—		7		—		27
Operating lease cost	2,515		2,327		7,474		6,875
Variable lease costs	78		106		233		259
Total lease cost	$	2,604	$	2,680	$	8,093	$	7,898

The following is a summary of other information and supplemental cash flow information related to finance and operating leases:

	Nine months ended September 30,
(in thousands)	2021		2020
Other information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	7,635	$	6,676
Right-of-use asset obtained in exchange for new operating lease obligations	$	5,687	$	5,592

The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets under operating leases, less imputed interest, as of September 30, 2021 were as follows:

(in thousands)	Operating Lease Obligations
Remainder of 2021	$	2,642
2022	9,430
2023	6,953
2024	3,847
2025	1,685
2026	977
Thereafter	10
Total minimum lease payments	25,544
Financing component	(4,078)
Net present value of minimum lease payments	21,466
Less: current portion of finance and operating lease obligations	(7,451)
Long-term finance and operating lease obligations	$	14,015

The financing component for operating lease obligations represents the effect of discounting the lease payments to their present value. As of September 30, 2021, the Company had no outstanding finance lease obligations.

Certain subsidiaries of the Company have operating leases for facilities from third party companies that are owned, in whole or part, by employees of the subsidiaries. The terms and rental rates of these leases are at market rental rates. As of September 30, 2021, the minimum lease payments required under these leases totaled $2.5 million, which are due over the next 2.8 years.