LEASES (Tables)
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9 Months Ended |
Sep. 30, 2022 |
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| Leases [Abstract] |
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| Net Investment in Sales-Type and Direct Financing Lease |
Total net investment in sales-type and direct financing leases consists of the following (dollars in thousands):
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September 30, 2022 |
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December 31, 2021 |
Sales-type and direct financing leases: |
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Lease receivables, net of unearned income and deferred selling profit |
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$ |
254,773 |
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$ |
199,423 |
Unguaranteed residual values, net of unearned income and deferred selling profit |
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|
12,219 |
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|
|
8,911 |
Total net investment in sales-type and direct financing leases |
|
$ |
266,992 |
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|
$ |
208,334 |
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| Lessee Lease Portfolio and Other Supplemental Lease Information |
The tables below provide information about the Company’s lessee lease portfolio and other supplemental lease information (dollars in thousands):
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September 30, 2022 |
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December 31, 2021 |
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Operating |
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Finance |
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Operating |
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Finance |
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ROU assets |
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$ |
31,821 |
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|
$ |
5,817 |
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$ |
40,653 |
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$ |
6,506 |
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Lease liabilities |
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44,145 |
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8,593 |
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50,742 |
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9,477 |
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Lease Term and Discount Rate of Operating leases: |
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Weighted-average remaining lease term (years) |
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6.44 |
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6.33 |
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6.75 |
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7.08 |
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Weighted-average discount rate (1) |
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2.63 |
% |
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|
1.17 |
% |
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|
2.57 |
% |
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|
1.17 |
% |
(1) An incremental borrowing rate is used based on information available at commencement date of lease or at remeasurement date
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| Other Lease Information |
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Nine months ended September 30, |
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2022 |
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2021 |
Cash paid for amounts included in measurement of lease liabilities: |
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Operating Cash Flows from Finance Leases |
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$ |
79 |
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$ |
89 |
Operating Cash Flows from Operating Leases |
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8,514 |
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|
8,961 |
Financing Cash Flows from Finance Leases |
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|
885 |
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|
851 |
ROU assets obtained in exchange for lease obligations: |
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Operating leases |
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$ |
1,268 |
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$ |
2,412 |
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| Lease Cost |
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Three months ended September 30, |
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Nine months ended September 30, |
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2022 |
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2021 |
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2022 |
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2021 |
Net Operating Lease Cost |
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$ |
2,117 |
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$ |
2,535 |
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$ |
6,658 |
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$ |
7,615 |
Finance Lease Cost: |
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Amortization of right-of-use assets |
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230 |
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230 |
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|
689 |
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|
689 |
Interest on lease liabilities |
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25 |
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29 |
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|
79 |
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|
89 |
Total Lease Cost |
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$ |
2,372 |
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$ |
2,794 |
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$ |
7,426 |
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$ |
8,393 |
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| Maturities of Lessor and Lessee Arrangements Outstanding |
The maturities of lessor and lessee arrangements outstanding at September 30, 2022 are presented in the table below (dollars in thousands):
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September 30, 2022 |
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Lessor |
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Lessee |
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Sales-type and Direct Financing |
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Operating |
|
Finance |
For the remaining three months of 2022 |
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$ |
16,842 |
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$ |
2,806 |
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$ |
329 |
2023 |
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|
65,059 |
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|
10,388 |
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|
1,325 |
2024 |
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|
62,282 |
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|
9,441 |
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|
1,358 |
2025 |
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|
48,508 |
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|
7,297 |
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|
1,392 |
2026 |
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|
36,606 |
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|
4,826 |
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|
1,427 |
Thereafter |
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|
50,030 |
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|
13,642 |
|
|
3,088 |
Total undiscounted cash flows |
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|
279,327 |
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|
48,400 |
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|
8,919 |
Less: Adjustments (1) |
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24,554 |
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|
4,255 |
|
|
326 |
Total (2) |
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$ |
254,773 |
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$ |
44,145 |
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$ |
8,593 |
(1) Lessor – unearned income and unearned guaranteed residual value; Lessee – imputed interest
(2) Represents lease receivables for lessor arrangements and lease liabilities for lessee arrangements
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