XML 36 R23.htm IDEA: XBRL DOCUMENT v3.23.1
LEASES
 3 Months Ended
Mar. 31, 2023
Leases [Abstract]  
LEASES LEASES
Finance Leases

The Company's finance lease liabilities consisted of the following as of March 31, 2023 and December 31, 2022 (in thousands):
CreditorLoan TypeMarch 31, 2023December 31, 2022
VRA Finance leaseFinance Lease$45,029 $45,311 
PlaqueminesFinance Lease1,145 1,169 
Harvey Ford Finance Lease46 47 
DLL financialFinance Lease23 — 
Centerpoint BlakelyFinance Lease14,998 — 
$61,241 $46,527 
Future maturities of finance lease obligations, as of March 31, 2023, are summarized as follows (in thousands):
Period Ended March 31,Amount Due
2024$7,834 
20257,834 
20267,831 
20277,824 
202819,955 
Thereafter62,790 
Total lease payments114,068 
Less: interest(52,827)
Present value of financing lease liabilities$61,241 

The following table summarizes the lease cost recognized in our consolidated statements of operations (in thousands):
Three Months Ended March 31,
Lease Cost Type20232022
Amortization of finance lease ROU assets$784 $28 
Interest on lease liabilities1,382 6 
Net finance lease costs$2,166 $34 
Operating Leases
Operating leases are included in operating lease right-of-use lease assets, and operating current and long-term lease liabilities on the consolidated balance sheets. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Variable lease expense is recognized in the period in which the obligation for those payments is incurred. Lease expense for equipment is included in cost of revenues and other rents are included in selling, general and administrative expense on the unaudited consolidated statements of operations and are reported net of lease income.
The following table summarizes the operating lease costs recognized (in thousands):
Three Months Ended March 31,
Lease Cost Type20232022
Operating lease cost$3,070 $1,434 
Variable lease cost260 45 
Short-term lease cost1,929 1,864 
Net lease cost$5,259 $3,343 
Cash Flows
The following table summarizes the supplemental cash flow information related to leases as follows (in thousands):
Three Months Ended March 31,
Lease Cost Type20232022
Cash paid for amounts included in the measurement of liabilities
Payments on financing lease$310 $98 
Payments on operating lease$3,070 $1,434 
Non-cash supplemental amounts
ROU assets obtained from new finance lease liabilities$15,024 $— 
ROU assets obtained from new operating lease liabilities$15,078 $— 
Maturities of our lease liabilities for all operating leases are as follows as of March 31, 2023 (in thousands):
For the period ending March 31,FacilitiesEquipmentPlantRailcarTotal
2024$590 $3,929 $7,259 $1,359 $13,137 
2025435 3,708 7,259 846 12,248 
2026345 3,401 7,259 479 11,484 
2027300 3,401 7,263 320 11,284 
2028300 2,186 7,314 122 9,922 
Thereafter1,375 — 64,807 — 66,182 
Total lease payments3,345 16,625 101,161 3,126 124,257 
Less: interest(992)(3,733)(50,656)(241)(55,622)
Present value of operating lease liabilities$2,353 $12,892 $50,505 $2,885 $68,635 

The weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of March 31, 2023:
Remaining lease term and discount rate:March 31, 2023
Weighted average remaining lease terms (years)
   Lease facilities5.21
   Lease equipment4.47
   Lease plant14.02
   Lease railcar2.25
Weighted average discount rate
   Lease facilities9.22 %
   Lease equipment11.70 %
   Lease plant10.62 %
   Lease railcar8.00 %
There are two plant leases that have multiple 5-year extension options for a total of 20 years, two plant leases with multiple 1-year extension options for a total of 20 years and seven equipment leases with a 3-year extension option. These extension options have been included in the lease right-of-use asset and lease obligation.
The Company will reassess the lease terms and purchase options when there is a significant change in circumstances or when the Company elects to exercise an option that had previously been determined that it was not reasonably certain to do so.
LEASES LEASES
Finance Leases

The Company's finance lease liabilities consisted of the following as of March 31, 2023 and December 31, 2022 (in thousands):
CreditorLoan TypeMarch 31, 2023December 31, 2022
VRA Finance leaseFinance Lease$45,029 $45,311 
PlaqueminesFinance Lease1,145 1,169 
Harvey Ford Finance Lease46 47 
DLL financialFinance Lease23 — 
Centerpoint BlakelyFinance Lease14,998 — 
$61,241 $46,527 
Future maturities of finance lease obligations, as of March 31, 2023, are summarized as follows (in thousands):
Period Ended March 31,Amount Due
2024$7,834 
20257,834 
20267,831 
20277,824 
202819,955 
Thereafter62,790 
Total lease payments114,068 
Less: interest(52,827)
Present value of financing lease liabilities$61,241 

The following table summarizes the lease cost recognized in our consolidated statements of operations (in thousands):
Three Months Ended March 31,
Lease Cost Type20232022
Amortization of finance lease ROU assets$784 $28 
Interest on lease liabilities1,382 6 
Net finance lease costs$2,166 $34 
Operating Leases
Operating leases are included in operating lease right-of-use lease assets, and operating current and long-term lease liabilities on the consolidated balance sheets. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Variable lease expense is recognized in the period in which the obligation for those payments is incurred. Lease expense for equipment is included in cost of revenues and other rents are included in selling, general and administrative expense on the unaudited consolidated statements of operations and are reported net of lease income.
The following table summarizes the operating lease costs recognized (in thousands):
Three Months Ended March 31,
Lease Cost Type20232022
Operating lease cost$3,070 $1,434 
Variable lease cost260 45 
Short-term lease cost1,929 1,864 
Net lease cost$5,259 $3,343 
Cash Flows
The following table summarizes the supplemental cash flow information related to leases as follows (in thousands):
Three Months Ended March 31,
Lease Cost Type20232022
Cash paid for amounts included in the measurement of liabilities
Payments on financing lease$310 $98 
Payments on operating lease$3,070 $1,434 
Non-cash supplemental amounts
ROU assets obtained from new finance lease liabilities$15,024 $— 
ROU assets obtained from new operating lease liabilities$15,078 $— 
Maturities of our lease liabilities for all operating leases are as follows as of March 31, 2023 (in thousands):
For the period ending March 31,FacilitiesEquipmentPlantRailcarTotal
2024$590 $3,929 $7,259 $1,359 $13,137 
2025435 3,708 7,259 846 12,248 
2026345 3,401 7,259 479 11,484 
2027300 3,401 7,263 320 11,284 
2028300 2,186 7,314 122 9,922 
Thereafter1,375 — 64,807 — 66,182 
Total lease payments3,345 16,625 101,161 3,126 124,257 
Less: interest(992)(3,733)(50,656)(241)(55,622)
Present value of operating lease liabilities$2,353 $12,892 $50,505 $2,885 $68,635 

The weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of March 31, 2023:
Remaining lease term and discount rate:March 31, 2023
Weighted average remaining lease terms (years)
   Lease facilities5.21
   Lease equipment4.47
   Lease plant14.02
   Lease railcar2.25
Weighted average discount rate
   Lease facilities9.22 %
   Lease equipment11.70 %
   Lease plant10.62 %
   Lease railcar8.00 %
There are two plant leases that have multiple 5-year extension options for a total of 20 years, two plant leases with multiple 1-year extension options for a total of 20 years and seven equipment leases with a 3-year extension option. These extension options have been included in the lease right-of-use asset and lease obligation.
The Company will reassess the lease terms and purchase options when there is a significant change in circumstances or when the Company elects to exercise an option that had previously been determined that it was not reasonably certain to do so.