XML 41 R29.htm IDEA: XBRL DOCUMENT v3.23.1
Leases (Tables)
 3 Months Ended
Mar. 31, 2023
Leases [Abstract]  
Supplemental Balance Sheets Information
The following table summarizes the lease amounts included in the Company's condensed consolidated balance sheets:
(in thousands)Classification on the Condensed Consolidated Balance SheetsMarch 31, 2023December 31, 2022
Assets
Operating
Operating lease right-of-use assets(1)
$18,055 $18,288 
Finance
Property and equipment, net(2)(3)
8,118 7,402 
Total lease assets$26,173 $25,690 
Liabilities
Current
   OperatingCurrent operating lease liabilities$3,639 $3,562 
   FinanceCurrent portion of long-term debt2,214 2,135 
Noncurrent
   OperatingLong-term operating lease liabilities15,374 15,643 
   Finance
Long-term debt(4)
8,853 8,170 
Total lease liabilities$30,080 $29,510 
(1)     Operating lease assets are recorded net of accumulated amortization of $10.8 million at March 31, 2023 and $12.2 million at December 31, 2022.
(2)    Finance lease vehicle assets are recorded net of accumulated amortization of $5.3 million at March 31, 2023 and $6.0 million at December 31, 2022.
(3)    Includes approximately $2.6 million of net property assets associated with the Company's Pontiac Facility.
(4)    Includes approximately $5.4 million associated with the Company's sale and leaseback financing transaction. See Note 5 for further detail.
Summary of Lease Costs, Lease Terms and Discount Rates
The following table summarizes the lease costs included in the Company's condensed consolidated statements of operations for the three months ended March 31, 2023 and 2022:
Three Months Ended
March 31,
(in thousands)Classification on the Condensed Consolidated Statement of Operations20232022
Operating lease cost
Cost of revenue(1)
$561 $694 
Operating lease cost
Selling, general and administrative(1)
645 704 
Finance lease cost
   Amortization
Cost of revenue(2)
631 651 
   Interest
Interest expense, net(2)
66 66 
Total lease cost$1,903 $2,115 
(1)    Operating lease costs recorded in cost of revenue included $0.1 million of variable lease costs for each of the three months ended March 31, 2023 and 2022. In addition, $0.1 million of variable lease costs are included in selling, general and administrative for each of the three months ended March 31, 2023 and 2022, respectively. These variable costs consist of the Company's proportionate share of operating expenses, real estate taxes and utilities.
(2)     Finance lease costs recorded in cost of revenue include variable lease costs of $0.9 million and $0.8 million for the three months ended March 31, 2023 and 2022, respectively. These variable lease costs consist of fuel, maintenance, and sales tax charges.
The following is a summary of the lease terms and discount rates as of:
March 31, 2023December 31, 2022
Weighted average lease term (in years):
   Operating6.806.98
   Finance (1)
2.962.73
Weighted average discount rate:
   Operating4.88 %4.76 %
   Finance (1)
5.67 %5.06 %
(1)     Excludes the weighted average lease term and weighted average discount rate associated with the aforementioned sale-leaseback financing transaction, which has a Primary Term of 25 years and utilized an implicit rate of 11.11%. See Note 5 for further detail.
Future Minimum Commitment for Finance Leases
Future minimum commitments for finance and operating leases that have non-cancelable lease terms in excess of one year as of March 31, 2023 were as follows (in thousands):
Finance LeasesOperating Leases
Year ending:VehiclesPontiac FacilityTotal FinanceNon-Related Party
Related Party(1)
Sublease Receipts(2)
Total Operating
Remainder of 2023$1,742 $— $1,742 $3,051 $338 $(668)$2,720 
20241,745 — 1,745 3,435 450 (912)2,973 
20251,282 — 1,282 2,928 450 (939)2,439 
2026805 — 805 2,815 450 (967)2,298 
2027142 — 142 1,842 540 (327)2,055 
Thereafter— 5,351 5,351 1,834 4,275 — 6,109 
Total minimum lease payments$5,716 $5,351 $11,067 $15,904 $6,503 $(3,813)$18,594 
Amounts representing interest529 11,468 11,997 
Aggregate future value of minimum lease payments$6,245 $16,819 $23,064 
(1)    Associated with the aforementioned related party lease entered into with a former member of JMLLC.
(2)    Associated with the aforementioned third party sublease.
Future Minimum Commitment for Operating Leases
Future minimum commitments for finance and operating leases that have non-cancelable lease terms in excess of one year as of March 31, 2023 were as follows (in thousands):
Finance LeasesOperating Leases
Year ending:VehiclesPontiac FacilityTotal FinanceNon-Related Party
Related Party(1)
Sublease Receipts(2)
Total Operating
Remainder of 2023$1,742 $— $1,742 $3,051 $338 $(668)$2,720 
20241,745 — 1,745 3,435 450 (912)2,973 
20251,282 — 1,282 2,928 450 (939)2,439 
2026805 — 805 2,815 450 (967)2,298 
2027142 — 142 1,842 540 (327)2,055 
Thereafter— 5,351 5,351 1,834 4,275 — 6,109 
Total minimum lease payments$5,716 $5,351 $11,067 $15,904 $6,503 $(3,813)$18,594 
Amounts representing interest529 11,468 11,997 
Aggregate future value of minimum lease payments$6,245 $16,819 $23,064 
(1)    Associated with the aforementioned related party lease entered into with a former member of JMLLC.
(2)    Associated with the aforementioned third party sublease.
Leases Supplemental Cash Flow Information
The following is a summary of other information and supplemental cash flow information related to finance and operating leases:
Three months ended March 31,
(in thousands)20232022
Cash paid for amounts included in the measurement of lease liabilities:
   Operating cash flows from operating leases$1,164 $1,358 
   Operating cash flows from finance leases66 66 
   Financing cash flows from finance leases639 660 
Right-of-use assets exchanged for lease liabilities:
   Operating leases742 — 
   Finance leases1,402 864 
Right-of-use assets disposed or adjusted modifying operating leases liabilities— (1,276)
Right-of-use assets disposed or adjusted modifying finance leases liabilities$(1)(19)