LEASES (Tables)
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12 Months Ended |
Dec. 31, 2022 |
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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December 31, 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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$ |
266,380 |
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$ |
199,423 |
Unguaranteed residual values, net of unearned income and deferred selling profit |
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15,159 |
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8,911 |
Total net investment in sales-type and direct financing leases |
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$ |
281,539 |
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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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December 31, 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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$ |
35,729 |
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$ |
5,588 |
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$ |
40,653 |
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$ |
6,506 |
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Lease liabilities |
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47,696 |
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8,288 |
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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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6.80 |
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6.08 |
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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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2.91 |
% |
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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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Year ended December 31, |
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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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$ |
103 |
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$ |
117 |
Operating Cash Flows from Operating Leases |
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11,266 |
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11,923 |
Financing Cash Flows from Finance Leases |
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1,189 |
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1,144 |
ROU assets obtained in exchange for lease obligations: |
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Operating leases |
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$ |
7,326 |
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$ |
3,666 |
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Lease Cost |
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Year ended December 31, |
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2022 |
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2021 |
Net Operating Lease Cost |
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$ |
8,839 |
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$ |
10,121 |
Finance Lease Cost: |
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Amortization of right-of-use assets |
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919 |
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919 |
Interest on lease liabilities |
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103 |
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117 |
Total Lease Cost |
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$ |
9,861 |
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$ |
11,157 |
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Maturities of Lessor and Lessee Arrangements Outstanding |
The maturities of lessor and lessee arrangements outstanding are presented in the table below (dollars in thousands):
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Year ended December 31, |
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Lessor |
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Lessee |
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Sales-type and Direct Financing |
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Operating |
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Finance |
2023 |
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$ |
66,192 |
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$ |
11,036 |
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$ |
1,325 |
2024 |
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65,360 |
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10,221 |
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1,358 |
2025 |
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54,432 |
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8,098 |
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1,392 |
2026 |
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42,918 |
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5,597 |
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1,427 |
2027 |
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32,036 |
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4,279 |
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1,462 |
Thereafter |
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35,553 |
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13,935 |
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1,626 |
Total undiscounted cash flows |
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296,491 |
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53,166 |
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8,590 |
Less: Adjustments (1) |
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30,111 |
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5,470 |
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|
302 |
Total (2) |
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$ |
266,380 |
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$ |
47,696 |
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$ |
8,288 |
(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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