Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

LEASES

We lease various assets in the ordinary course of business as follows: warehouses to store our materials and perform staging activities for certain products we install, various office spaces for selling and administrative activities to support our business, and certain vehicles and equipment to facilitate our operations, including, but not limited to, trucks, forklifts and office equipment.

The table below presents the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheets:

		As of September 30,			As of December 31,
(in thousands)	Classification	2021			2020
Assets
Non-Current
Operating	Operating lease right-of-use assets	$	61,028		$	53,766
Finance	Property and equipment, net	5,019			4,946
Total lease assets		$	66,047		$	58,712
Liabilities
Current
Operating	Current maturities of operating lease obligations	$	21,278		$	18,758
Financing	Current maturities of finance lease obligations	1,780			2,073
Non-Current
Operating	Operating lease obligations	39,155			34,413
Financing	Finance lease obligations	3,038			2,430
Total lease liabilities		$	65,251		$	57,674
Weighted-average remaining lease term:
Operating leases		3.9 years			4.1 years
Finance leases		3.2 years			2.6 years
Weighted-average discount rate:
Operating leases		3.37		%	3.67		%
Finance leases		4.95		%	5.08		%

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Lease Costs

The table below presents certain information related to the lease costs for finance and operating leases:

		Three months ended September 30,				Nine months ended September 30,
(in thousands)	Classification	2021		2020		2021		2020
Operating lease cost(1)	Administrative	$	6,927	$	5,760	$	19,947	$	16,972
Finance lease cost
Amortization of leased assets(2)	Cost of sales	769		856		2,342		2,762
Interest on finance lease obligations	Interest expense, net	54		64		161		207
Total lease costs		$	7,750	$	6,680	$	22,450	$	19,941

(1)Includes variable lease costs of $0.7 million and $0.6 million for the three months ended September 30, 2021 and 2020, respectively, and $2.2 million and $1.9 million for the nine months ended September 30, 2021 and 2020, respectively, and short-term lease costs of $0.3 million and $0.2 million for the three months ended September 30, 2021 and 2020, respectively, and $0.8 million and $0.6 million for the nine months ended September 30, 2021 and 2020, respectively.

(2)Includes variable lease costs of $0.2 million for each of the three months ended September 30, 2021 and 2020, and $0.5 million and $0.6 million for each of the nine months ended September 30, 2021 and 2020.

Other Information

The table below presents supplemental cash flow information related to leases (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	5,821	$	4,949	$	16,763	$	14,501
Operating cash flows for finance leases	54		64		161		207
Financing cash flows for finance leases	532		606		1,573		1,998

Undiscounted Cash Flows

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years for the finance lease obligations and operating lease obligations recorded on the Condensed Consolidated Balance Sheet as of September 30, 2021 (in thousands):

	Finance Leases		Operating Leases
			Related Party		Other		Total Operating
Remainder of 2021	$	661	$	342	$	5,696	$	6,038
2022	1,751		1,347		20,432		21,779
2023	1,278		906		14,878		15,784
2024	869		645		8,112		8,757
2025	501		519		4,481		5,000
Thereafter	200		—		7,496		7,496
Total minimum lease payments	5,260		$	3,759	$	61,095	64,854
Less: Amounts representing executory costs	(36)
Less: Amounts representing interest	(406)						(4,421)
Present value of future minimum lease payments	4,818						60,433
Less: Current obligation under leases	(1,780)						(21,278)
Long-term lease obligations	$	3,038					$	39,155

Leases

LEASES

We lease various assets in the ordinary course of business as follows: warehouses to store our materials and perform staging activities for certain products we install, various office spaces for selling and administrative activities to support our business, and certain vehicles and equipment to facilitate our operations, including, but not limited to, trucks, forklifts and office equipment.

The table below presents the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheets:

		As of September 30,			As of December 31,
(in thousands)	Classification	2021			2020
Assets
Non-Current
Operating	Operating lease right-of-use assets	$	61,028		$	53,766
Finance	Property and equipment, net	5,019			4,946
Total lease assets		$	66,047		$	58,712
Liabilities
Current
Operating	Current maturities of operating lease obligations	$	21,278		$	18,758
Financing	Current maturities of finance lease obligations	1,780			2,073
Non-Current
Operating	Operating lease obligations	39,155			34,413
Financing	Finance lease obligations	3,038			2,430
Total lease liabilities		$	65,251		$	57,674
Weighted-average remaining lease term:
Operating leases		3.9 years			4.1 years
Finance leases		3.2 years			2.6 years
Weighted-average discount rate:
Operating leases		3.37		%	3.67		%
Finance leases		4.95		%	5.08		%

+

Lease Costs

The table below presents certain information related to the lease costs for finance and operating leases:

		Three months ended September 30,				Nine months ended September 30,
(in thousands)	Classification	2021		2020		2021		2020
Operating lease cost(1)	Administrative	$	6,927	$	5,760	$	19,947	$	16,972
Finance lease cost
Amortization of leased assets(2)	Cost of sales	769		856		2,342		2,762
Interest on finance lease obligations	Interest expense, net	54		64		161		207
Total lease costs		$	7,750	$	6,680	$	22,450	$	19,941

(1)Includes variable lease costs of $0.7 million and $0.6 million for the three months ended September 30, 2021 and 2020, respectively, and $2.2 million and $1.9 million for the nine months ended September 30, 2021 and 2020, respectively, and short-term lease costs of $0.3 million and $0.2 million for the three months ended September 30, 2021 and 2020, respectively, and $0.8 million and $0.6 million for the nine months ended September 30, 2021 and 2020, respectively.

(2)Includes variable lease costs of $0.2 million for each of the three months ended September 30, 2021 and 2020, and $0.5 million and $0.6 million for each of the nine months ended September 30, 2021 and 2020.

Other Information

The table below presents supplemental cash flow information related to leases (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	5,821	$	4,949	$	16,763	$	14,501
Operating cash flows for finance leases	54		64		161		207
Financing cash flows for finance leases	532		606		1,573		1,998

Undiscounted Cash Flows

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years for the finance lease obligations and operating lease obligations recorded on the Condensed Consolidated Balance Sheet as of September 30, 2021 (in thousands):

	Finance Leases		Operating Leases
			Related Party		Other		Total Operating
Remainder of 2021	$	661	$	342	$	5,696	$	6,038
2022	1,751		1,347		20,432		21,779
2023	1,278		906		14,878		15,784
2024	869		645		8,112		8,757
2025	501		519		4,481		5,000
Thereafter	200		—		7,496		7,496
Total minimum lease payments	5,260		$	3,759	$	61,095	64,854
Less: Amounts representing executory costs	(36)
Less: Amounts representing interest	(406)						(4,421)
Present value of future minimum lease payments	4,818						60,433
Less: Current obligation under leases	(1,780)						(21,278)
Long-term lease obligations	$	3,038					$	39,155