LEASES (Tables)
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9 Months Ended |
Sep. 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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September 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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$ |
325,556 |
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$ |
266,380 |
Unguaranteed residual values, net of unearned income and deferred selling profit |
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16,711 |
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15,159 |
Total net investment in sales-type and direct financing leases |
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$ |
342,267 |
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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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September 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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$ |
68,807 |
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$ |
4,899 |
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$ |
35,729 |
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$ |
5,588 |
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Lease liabilities |
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75,502 |
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7,369 |
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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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11.66 |
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5.33 |
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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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6.06 |
% |
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1.17 |
% |
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2.91 |
% |
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1.17 |
% |
(1) A lease implicit rate or 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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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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$ |
68 |
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$ |
79 |
Operating Cash Flows from Operating Leases |
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8,902 |
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8,514 |
Financing Cash Flows from Finance Leases |
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919 |
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|
885 |
ROU assets obtained in exchange for lease obligations: |
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Operating leases |
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$ |
38,318 |
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$ |
1,268 |
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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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2023 |
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2022 |
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2023 |
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2022 |
Net Operating Lease Cost |
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$ |
2,381 |
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$ |
2,117 |
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$ |
7,291 |
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$ |
6,658 |
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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22 |
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25 |
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68 |
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|
79 |
Total Lease Cost |
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$ |
2,633 |
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$ |
2,372 |
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$ |
8,048 |
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$ |
7,426 |
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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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September 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 |
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Finance |
For the remaining three months of 2023 |
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$ |
20,314 |
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$ |
3,536 |
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$ |
337 |
2024 |
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84,391 |
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13,666 |
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1,358 |
2025 |
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73,581 |
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11,603 |
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1,392 |
2026 |
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62,743 |
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9,146 |
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1,427 |
2027 |
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50,928 |
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|
7,759 |
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|
1,462 |
Thereafter |
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76,765 |
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66,137 |
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|
1,627 |
Total undiscounted cash flows |
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368,722 |
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111,847 |
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|
7,603 |
Less: Adjustments (1) |
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43,166 |
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36,345 |
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|
234 |
Total (2) |
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$ |
325,556 |
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$ |
75,502 |
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$ |
7,369 |
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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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