LEASES (Tables)
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3 Months Ended |
Mar. 31, 2023 |
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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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March 31, 2023 |
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December 31, 2022 |
Sales-type and direct financing leases: |
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Lease receivables, net of unearned income and deferred selling profit |
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$ |
257,643 |
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$ |
266,380 |
Unguaranteed residual values, net of unearned income and deferred selling profit |
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|
15,269 |
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|
15,159 |
Total net investment in sales-type and direct financing leases |
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$ |
272,912 |
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|
$ |
281,539 |
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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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March 31, 2023 |
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December 31, 2022 |
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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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$ |
34,520 |
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$ |
5,358 |
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$ |
35,729 |
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$ |
5,588 |
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Lease liabilities |
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45,897 |
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7,983 |
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47,696 |
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|
8,288 |
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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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6.70 |
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5.83 |
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6.80 |
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6.08 |
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Weighted-average discount rate (1) |
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2.96 |
% |
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1.17 |
% |
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2.91 |
% |
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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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Three months ended March 31, |
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2023 |
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2022 |
Cash paid for amounts included in measurement of lease liabilities: |
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Operating Cash Flows from Finance Leases |
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$ |
24 |
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$ |
27 |
Operating Cash Flows from Operating Leases |
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2,812 |
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|
2,891 |
Financing Cash Flows from Finance Leases |
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|
306 |
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|
294 |
ROU assets obtained in exchange for lease obligations: |
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Operating leases |
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$ |
852 |
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$ |
143 |
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| Lease Cost |
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Three months ended March 31, |
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2023 |
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2022 |
Net Operating Lease Cost |
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$ |
2,240 |
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$ |
2,309 |
Finance Lease Cost: |
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Amortization of right-of-use assets |
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230 |
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|
230 |
Interest on lease liabilities |
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24 |
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27 |
Total Lease Cost |
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$ |
2,494 |
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$ |
2,566 |
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| Maturities of Lessor and Lessee Arrangements Outstanding |
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Three months ended March 31, |
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2023 |
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2022 |
Net Operating Lease Cost |
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$ |
2,240 |
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$ |
2,309 |
Finance Lease Cost: |
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Amortization of right-of-use assets |
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230 |
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|
230 |
Interest on lease liabilities |
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24 |
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27 |
Total Lease Cost |
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$ |
2,494 |
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$ |
2,566 |
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The maturities of lessor and lessee arrangements outstanding are presented in the table below (dollars in thousands):
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March 31, 2023 |
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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 |
For the remaining nine months of 2023 |
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$ |
49,822 |
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$ |
8,243 |
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$ |
996 |
2024 |
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|
66,025 |
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|
10,394 |
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1,358 |
2025 |
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55,221 |
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|
8,214 |
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1,392 |
2026 |
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43,834 |
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|
5,711 |
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|
1,427 |
2027 |
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|
33,152 |
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|
4,450 |
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|
1,462 |
Thereafter |
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38,814 |
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|
14,129 |
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|
1,626 |
Total undiscounted cash flows |
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286,868 |
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|
51,141 |
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|
8,261 |
Less: Adjustments (1) |
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29,225 |
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5,244 |
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|
278 |
Total (2) |
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$ |
257,643 |
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$ |
45,897 |
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$ |
7,983 |
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(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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