LEASES (Tables)
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6 Months Ended |
Jun. 30, 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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June 30, 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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$ |
280,023 |
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$ |
266,380 |
Unguaranteed residual values, net of unearned income and deferred selling profit |
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15,946 |
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|
15,159 |
Total net investment in sales-type and direct financing leases |
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$ |
295,969 |
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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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June 30, 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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$ |
32,725 |
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$ |
5,128 |
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$ |
35,729 |
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$ |
5,588 |
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Lease liabilities |
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40,507 |
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7,676 |
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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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6.26 |
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5.58 |
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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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Six months ended June 30, |
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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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$ |
46 |
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$ |
53 |
Operating Cash Flows from Operating Leases |
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6,156 |
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|
5,756 |
Financing Cash Flows from Finance Leases |
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612 |
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|
589 |
ROU assets obtained in exchange for lease obligations: |
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Operating leases |
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$ |
(241) |
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$ |
424 |
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| Lease Cost |
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Three months ended June 30, |
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Six months ended June 30, |
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2023 |
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2022 |
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2023 |
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2022 |
Net Operating Lease Cost |
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$ |
2,358 |
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$ |
2,230 |
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$ |
4,910 |
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$ |
5,081 |
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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459 |
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|
459 |
Interest on lease liabilities |
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23 |
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26 |
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46 |
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|
60 |
Total Lease Cost |
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$ |
2,611 |
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$ |
2,486 |
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$ |
5,415 |
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$ |
5,600 |
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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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June 30, 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 |
|
Finance |
For the remaining six months of 2023 |
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$ |
35,659 |
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$ |
5,345 |
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$ |
666 |
2024 |
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72,115 |
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10,154 |
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1,358 |
2025 |
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61,666 |
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8,027 |
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1,392 |
2026 |
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50,022 |
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5,517 |
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1,427 |
2027 |
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40,317 |
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|
4,101 |
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|
1,462 |
Thereafter |
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54,321 |
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11,666 |
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|
1,627 |
Total undiscounted cash flows |
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314,100 |
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|
44,810 |
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|
7,932 |
Less: Adjustments (1) |
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34,077 |
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4,303 |
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|
256 |
Total (2) |
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$ |
280,023 |
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$ |
40,507 |
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$ |
7,676 |
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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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