Leases

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Leases

NOTE 10. LEASES

We lease certain equipment, office space and land. Lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease.

The following table presents supplemental balance sheet information related to lease assets and liabilities:

(in thousands)	Classification	September 30, 2022		December 31, 2021
Assets
Operating lease assets	Other long-term assets	$	10,071	$	8,514
Finance lease assets1	Property, plant and equipment, net		13,365		10,663
Total lease assets		$	23,436	$	19,177
Liabilities
Current:
Operating lease liabilities	Accounts payable and accrued liabilities	$	2,819	$	3,021
Finance lease liabilities	Accounts payable and accrued liabilities		4,883		3,577
Noncurrent:
Operating lease liabilities	Other long-term obligations		7,219		5,598
Finance lease liabilities	Other long-term obligations		8,318		6,972
Total lease liabilities		$	23,239	$	19,168

1 Finance lease assets are presented net of accumulated amortization of $7.6 million and $4.5 million as of September 30, 2022 and December 31, 2021, respectively.

The following table presents the components of lease expense:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Operating lease costs1	$	805	$	1,156	$	2,633	$	3,769
Finance lease costs:
Amortization of leased assets		1,137		741		3,061		1,963
Interest on lease liabilities		90		60		226		162
Net lease costs	$	2,032	$	1,957	$	5,920	$	5,894

1 Excludes short-term leases and variable lease costs, which are immaterial.

The following table presents supplemental cash flow information related to leases:

	Nine Months Ended September 30,
(in thousands)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	2,733	$	3,723
Operating cash flows for finance leases	$	226	$	162
Financing cash flows for finance leases	$	3,110	$	1,963
Leased assets exchanged for new lease liabilities:
Operating leases1	$	3,931	$	213
Finance leases	$	5,761	$	3,916

1 Includes $2.4 million for an office lease assumed in the CatchMark merger. See Note 13: CatchMark Merger.