LEASES

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

LEASES

NOTE 14 — LEASES

Our land leases are classified as finance leases and include one or more options to extend the lease term for up to 40 years, as well as to terminate the lease within five years, at our sole discretion. We are reasonably certain that those options will be exercised, and that our termination rights will not be exercised, and we have, therefore, included those assumptions within our right of use assets and corresponding lease liabilities. Our office space leases are classified as operating leases and include one or more options to extend the lease term up to 10 years, at our sole discretion. As we are not reasonably certain that those

options will be exercised, none are recognized as part of our right of use assets and lease liabilities. As none of our leases provide an implicit rate, we have determined our own discount rate.

The following table shows the classification and location of our right-of-use assets and lease liabilities on our Consolidated Balance Sheets (in thousands):

Leases	Consolidated Balance Sheets Classification	June 30, 2022		December 31, 2021
Right of use asset
Operating	Other non-current assets	$	12,872	$	10,166
Finance	Property, plant and equipment, net	57,295		57,883
Total leased assets		$	70,167	$	68,049
Liabilities
Current
Operating	Accrued and other liabilities	$	2,473	$	2,147
Finance	Accrued and other liabilities	136		132
Non-Current
Operating	Other non-current liabilities	11,910		9,563
Finance	Finance lease liabilities	50,034		50,103
Total leased liabilities		$	64,553	$	61,945

Lease costs recognized in our Consolidated Statements of Operations is summarized as follows (in thousands):

	Six months ended
Lease Costs	2022		2021
Operating lease cost	$	1,452	$	1,448
Finance lease cost
Amortization of lease assets	587		201
Interest on lease liabilities	1,990		911
Finance lease cost	$	2,577	$	1,112
Total lease cost	$	4,029	$	2,560

Other information about lease amounts recognized in our Consolidated Financial Statements is as follows:

	June 30, 2022
Lease term and discount rate
Weighted average remaining lease term (years)
Operating lease	5.0
Finance lease	48.9
Weighted average discount rate
Operating lease	6.1	%
Finance lease	9.4	%

The following table includes other quantitative information for our operating and finance leases (in thousands):

	Six Months Ended June 30,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,494	$	724
Operating cash flows from finance leases	$	—	$	—
Financing cash flows from finance leases	$	2,668	$	—

The table below presents a maturity analysis of our lease liability on an undiscounted basis and reconciles those amounts to the present value of the lease liability as of June 30, 2022 (in thousands):

	Operating		Finance
2022	$	1,614	$	2,055
2023	3,316		4,111
2024	3,359		4,111
2025	3,401		4,111
2026	3,423		4,111
After 2026	1,633		182,222
Total lease payments	$	16,746	$	200,721
Less: discount	2,362		150,551
Present value of lease liability	$	14,384	$	50,170

LEASES

NOTE 14 — LEASES

Our land leases are classified as finance leases and include one or more options to extend the lease term for up to 40 years, as well as to terminate the lease within five years, at our sole discretion. We are reasonably certain that those options will be exercised, and that our termination rights will not be exercised, and we have, therefore, included those assumptions within our right of use assets and corresponding lease liabilities. Our office space leases are classified as operating leases and include one or more options to extend the lease term up to 10 years, at our sole discretion. As we are not reasonably certain that those

options will be exercised, none are recognized as part of our right of use assets and lease liabilities. As none of our leases provide an implicit rate, we have determined our own discount rate.

The following table shows the classification and location of our right-of-use assets and lease liabilities on our Consolidated Balance Sheets (in thousands):

Leases	Consolidated Balance Sheets Classification	June 30, 2022		December 31, 2021
Right of use asset
Operating	Other non-current assets	$	12,872	$	10,166
Finance	Property, plant and equipment, net	57,295		57,883
Total leased assets		$	70,167	$	68,049
Liabilities
Current
Operating	Accrued and other liabilities	$	2,473	$	2,147
Finance	Accrued and other liabilities	136		132
Non-Current
Operating	Other non-current liabilities	11,910		9,563
Finance	Finance lease liabilities	50,034		50,103
Total leased liabilities		$	64,553	$	61,945

Lease costs recognized in our Consolidated Statements of Operations is summarized as follows (in thousands):

	Six months ended
Lease Costs	2022		2021
Operating lease cost	$	1,452	$	1,448
Finance lease cost
Amortization of lease assets	587		201
Interest on lease liabilities	1,990		911
Finance lease cost	$	2,577	$	1,112
Total lease cost	$	4,029	$	2,560

Other information about lease amounts recognized in our Consolidated Financial Statements is as follows:

	June 30, 2022
Lease term and discount rate
Weighted average remaining lease term (years)
Operating lease	5.0
Finance lease	48.9
Weighted average discount rate
Operating lease	6.1	%
Finance lease	9.4	%

The following table includes other quantitative information for our operating and finance leases (in thousands):

	Six Months Ended June 30,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,494	$	724
Operating cash flows from finance leases	$	—	$	—
Financing cash flows from finance leases	$	2,668	$	—

The table below presents a maturity analysis of our lease liability on an undiscounted basis and reconciles those amounts to the present value of the lease liability as of June 30, 2022 (in thousands):

	Operating		Finance
2022	$	1,614	$	2,055
2023	3,316		4,111
2024	3,359		4,111
2025	3,401		4,111
2026	3,423		4,111
After 2026	1,633		182,222
Total lease payments	$	16,746	$	200,721
Less: discount	2,362		150,551
Present value of lease liability	$	14,384	$	50,170