Other Long-Term Liabilities

9 Months Ended

Sep. 30, 2022

Liabilities, Other than Long-term Debt, Noncurrent [Abstract]

Other Long-Term Liabilities

12.Other Long-Term Liabilities

Other long-term liabilities at September 30, 2022 and December 31, 2021 consisted of the following:

	September 30, 2022		December 31, 2021
Sale-leaseback arrangement	$	15,369	$	15,969
Deferred compensation		1,763		2,759
Accrued liabilities expected to be covered by insurance		295		214
Total other long-term liabilities	$	17,427	$	18,942

Sale-Leaseback Arrangement

On September 27, 2019, the Company entered into a purchase and sale agreement (the “Purchase and Sale Agreement”). Pursuant to the terms of the Purchase and Sale Agreement, the Company sold its 17300 & 17140 Market Street location in Channelview, Texas (the “Property”) for a purchase price of $19.1 million. Concurrent with the sale of the Property, the Company entered into a fifteen-year lease agreement (the “Lease Agreement”), whereby the Company will lease back the Property at an annual rental rate of approximately $1.5 million, subject to annual rent increases of 2.0%. Under the Lease Agreement, the Company has two consecutive options to extend the term of the Lease by ten years for each such option. This transaction was recorded as a failed sale-leaseback. The Company recorded a liability for the amounts received, will continue to depreciate the non-land portion of the asset, and has imputed an interest rate so that the net carrying amount of the financial liability and remaining assets will be zero at the end of the initial lease term.