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LEASES
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
LEASES LEASES
Leasing Arrangements as Lessee
We determine if an arrangement is a lease upon commencement of the contract. If an arrangement is determined to be a long-term lease (greater than 12 months), we recognize a right-of-use asset and lease liability based on the present value of the future minimum lease payments over the lease term at the commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Our lease terms may also include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Right-of-use assets are included in other deferred charges, the current portion of lease liabilities is included in accrued expenses and the long-term portion of lease liabilities is included in other deferred credits and other liabilities on our consolidated statements of financial position.
We have elected to apply the short-term lease exception for contracts that have a lease term of twelve months or less and do not include an option to purchase the underlying asset. Therefore, we do not recognize a right-of-use asset or lease liability for such contracts. We recognize short-term lease payments as expense on a straight-line basis over the lease term. Variable lease payments that do not depend on an index or rate are recognized as expense.
We have lease agreements as lessee for the right to use various facilities and operational assets. Rent expense for all short-term and long-term operating leases was $0.6 million for both the three months ended March 31, 2024 and 2023. Rent expense is included in various categories of operating expenses on our consolidated statements of operations based on the type and purpose of the lease. As of March 31, 2024, there were no arrangements accounted for as finance leases.
Our consolidated statements of financial position include the following lease components (dollars in thousands):
March 31,
2024		December 31,
2023
Operating leases
Operating lease right-of-use assets$9,061 $9,072 
Less: Accumulated amortization(2,845)(2,595)
Net operating lease right-of-use assets$6,216 $6,477 
Operating lease liabilities - current$(344)$(371)
Operating lease liabilities - noncurrent(1,312)(1,396)
Total operating lease liabilities$(1,656)$(1,767)
Operating leases
Weighted average remaining lease term (years)7.57.0
Weighted average discount rate4.76 %4.68 %
Future expected minimum lease commitments under operating leases are as follows (dollars in thousands):
Year 1$408 
Year 2209 
Year 3206 
Year 4509 
Year 5139 
Thereafter465 
Total lease payments$1,936 
Less imputed interest(280)
Total$1,656 
Leasing Arrangements as Lessor
We have lease agreements as lessor for certain operational assets. The revenue from these lease agreements of $0.9 million for both the three months ended March 31, 2024 and 2023 are included in other operating revenue on our consolidated statements of operations.
The lease arrangement with the Springerville Partnership is not reflected in our lease right right-of-use asset or liability balances as the associated revenues and expenses are eliminated in consolidation. See Note 16 - Variable Interest Entities. However, as the non-controlling interest associated with this lease arrangement generates book-tax differences, a deferred tax asset and liability have been recorded.
LEASES LEASES
Leasing Arrangements as Lessee
We determine if an arrangement is a lease upon commencement of the contract. If an arrangement is determined to be a long-term lease (greater than 12 months), we recognize a right-of-use asset and lease liability based on the present value of the future minimum lease payments over the lease term at the commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Our lease terms may also include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Right-of-use assets are included in other deferred charges, the current portion of lease liabilities is included in accrued expenses and the long-term portion of lease liabilities is included in other deferred credits and other liabilities on our consolidated statements of financial position.
We have elected to apply the short-term lease exception for contracts that have a lease term of twelve months or less and do not include an option to purchase the underlying asset. Therefore, we do not recognize a right-of-use asset or lease liability for such contracts. We recognize short-term lease payments as expense on a straight-line basis over the lease term. Variable lease payments that do not depend on an index or rate are recognized as expense.
We have lease agreements as lessee for the right to use various facilities and operational assets. Rent expense for all short-term and long-term operating leases was $0.6 million for both the three months ended March 31, 2024 and 2023. Rent expense is included in various categories of operating expenses on our consolidated statements of operations based on the type and purpose of the lease. As of March 31, 2024, there were no arrangements accounted for as finance leases.
Our consolidated statements of financial position include the following lease components (dollars in thousands):
March 31,
2024		December 31,
2023
Operating leases
Operating lease right-of-use assets$9,061 $9,072 
Less: Accumulated amortization(2,845)(2,595)
Net operating lease right-of-use assets$6,216 $6,477 
Operating lease liabilities - current$(344)$(371)
Operating lease liabilities - noncurrent(1,312)(1,396)
Total operating lease liabilities$(1,656)$(1,767)
Operating leases
Weighted average remaining lease term (years)7.57.0
Weighted average discount rate4.76 %4.68 %
Future expected minimum lease commitments under operating leases are as follows (dollars in thousands):
Year 1$408 
Year 2209 
Year 3206 
Year 4509 
Year 5139 
Thereafter465 
Total lease payments$1,936 
Less imputed interest(280)
Total$1,656 
Leasing Arrangements as Lessor
We have lease agreements as lessor for certain operational assets. The revenue from these lease agreements of $0.9 million for both the three months ended March 31, 2024 and 2023 are included in other operating revenue on our consolidated statements of operations.
The lease arrangement with the Springerville Partnership is not reflected in our lease right right-of-use asset or liability balances as the associated revenues and expenses are eliminated in consolidation. See Note 16 - Variable Interest Entities. However, as the non-controlling interest associated with this lease arrangement generates book-tax differences, a deferred tax asset and liability have been recorded.