LEASES

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

LEASES

NOTE 9. LEASES

The following table presents information about the Company’s right-of-use assets and lease liabilities at September 30, 2022 and December 31, 2021 (in thousands):

	Balance Sheet Line Items	September 30, 2022		December 31, 2021
Right-of-use assets:
Operating lease right-of-use assets	Operating lease assets	$	31,342	$	34,832
Finance lease right-of-use assets	Property, plant and equipment, net	28,819		38,365
Total right-of-use assets		$	60,161	$	73,197
Operating lease liabilities (1):
Current operating lease liabilities	Current portion of operating lease liabilities	$	724	$	10,992
Noncurrent operating lease liabilities	Operating lease liabilities, less current portion	4,363		33,727
Total operating lease liabilities		$	5,087	$	44,719
Finance lease liabilities (1):
Current finance lease liabilities	Accounts payable and accrued expenses	$	—	$	6,841
Noncurrent finance lease liabilities	Other liabilities	1,415		18,374
Total finance lease liabilities		$	1,415	$	25,215

__________

(1)Amounts at September 30, 2022 exclude operating lease liabilities of $33.6 million and finance lease liabilities of $18.8 million that are classified as Liabilities subject to compromise in the Condensed Consolidated Balance Sheets.

The following table presents information about lease costs and expenses and sublease income for the three and nine months ended September 30, 2022 and 2021 (in thousands):

		Three Months Ended September 30,				Nine Months Ended September 30,
	Statement of Operations Line Items	2022		2021		2022		2021
Operating lease cost	Various (1)	$	3,415	$	3,612	$	8,452	$	10,869
Finance lease cost:
Amortization of right-of-use assets	Various (1)	$	2,024	$	2,311	$	6,455	$	6,933
Interest on lease liabilities	Interest expense, net	$	271	$	310	$	877	$	1,015
Other lease costs and income:
Variable lease costs (2)	Various (1)	$	3,525	$	3,035	$	8,220	$	9,099
Finance lease right-of-use asset impairment charges	Asset impairment charges	$	—	$	—	$	3,063	$	—
Sublease income	Various (1)	$	(1,560)	$	(957)	$	(4,810)	$	(2,837)

__________

(1)Amounts are included in the Condensed Consolidated Statements of Operations based on the function that the underlying leased asset supports. The following table presents the components of such aggregate amounts for the three and nine months ended September 30, 2022 and 2021 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Cost of revenues	$	1,539	$	2,988	$	4,668	$	9,032
Selling, general and administrative	$	5,812	$	4,959	$	13,488	$	14,870
Research and development	$	53	$	54	$	161	$	162

(2)Amounts represent variable lease costs incurred that were not included in the initial measurement of the lease liability such as common area maintenance and utilities costs associated with leased real estate and certain costs associated with our automobile leases.

The following table provides certain cash flow and supplemental noncash information related to our lease liabilities for the nine months ended September 30, 2022 and 2021 (in thousands):

	Nine Months Ended September 30,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash payments for operating leases	$	9,746	$	10,010
Operating cash payments for finance leases	$	1,439	$	1,791
Financing cash payments for finance leases	$	4,501	$	4,044
Lease liabilities arising from obtaining right-of-use assets:
Operating leases (1)	$	1,296	$	4,985

__________

(1)The amount in 2022 primarily relates to a new lease agreement. The amount in 2021 primarily relates to an increase in lease liabilities and right-of-use assets related to a lease modification.

LEASES

NOTE 9. LEASES

The following table presents information about the Company’s right-of-use assets and lease liabilities at September 30, 2022 and December 31, 2021 (in thousands):

	Balance Sheet Line Items	September 30, 2022		December 31, 2021
Right-of-use assets:
Operating lease right-of-use assets	Operating lease assets	$	31,342	$	34,832
Finance lease right-of-use assets	Property, plant and equipment, net	28,819		38,365
Total right-of-use assets		$	60,161	$	73,197
Operating lease liabilities (1):
Current operating lease liabilities	Current portion of operating lease liabilities	$	724	$	10,992
Noncurrent operating lease liabilities	Operating lease liabilities, less current portion	4,363		33,727
Total operating lease liabilities		$	5,087	$	44,719
Finance lease liabilities (1):
Current finance lease liabilities	Accounts payable and accrued expenses	$	—	$	6,841
Noncurrent finance lease liabilities	Other liabilities	1,415		18,374
Total finance lease liabilities		$	1,415	$	25,215

__________

(1)Amounts at September 30, 2022 exclude operating lease liabilities of $33.6 million and finance lease liabilities of $18.8 million that are classified as Liabilities subject to compromise in the Condensed Consolidated Balance Sheets.

The following table presents information about lease costs and expenses and sublease income for the three and nine months ended September 30, 2022 and 2021 (in thousands):

		Three Months Ended September 30,				Nine Months Ended September 30,
	Statement of Operations Line Items	2022		2021		2022		2021
Operating lease cost	Various (1)	$	3,415	$	3,612	$	8,452	$	10,869
Finance lease cost:
Amortization of right-of-use assets	Various (1)	$	2,024	$	2,311	$	6,455	$	6,933
Interest on lease liabilities	Interest expense, net	$	271	$	310	$	877	$	1,015
Other lease costs and income:
Variable lease costs (2)	Various (1)	$	3,525	$	3,035	$	8,220	$	9,099
Finance lease right-of-use asset impairment charges	Asset impairment charges	$	—	$	—	$	3,063	$	—
Sublease income	Various (1)	$	(1,560)	$	(957)	$	(4,810)	$	(2,837)

__________

(1)Amounts are included in the Condensed Consolidated Statements of Operations based on the function that the underlying leased asset supports. The following table presents the components of such aggregate amounts for the three and nine months ended September 30, 2022 and 2021 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Cost of revenues	$	1,539	$	2,988	$	4,668	$	9,032
Selling, general and administrative	$	5,812	$	4,959	$	13,488	$	14,870
Research and development	$	53	$	54	$	161	$	162

(2)Amounts represent variable lease costs incurred that were not included in the initial measurement of the lease liability such as common area maintenance and utilities costs associated with leased real estate and certain costs associated with our automobile leases.

The following table provides certain cash flow and supplemental noncash information related to our lease liabilities for the nine months ended September 30, 2022 and 2021 (in thousands):

	Nine Months Ended September 30,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash payments for operating leases	$	9,746	$	10,010
Operating cash payments for finance leases	$	1,439	$	1,791
Financing cash payments for finance leases	$	4,501	$	4,044
Lease liabilities arising from obtaining right-of-use assets:
Operating leases (1)	$	1,296	$	4,985

__________

(1)The amount in 2022 primarily relates to a new lease agreement. The amount in 2021 primarily relates to an increase in lease liabilities and right-of-use assets related to a lease modification.