LEASES (Tables)
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3 Months Ended |
Mar. 31, 2024 |
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 as of the periods ended (dollars in thousands):
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March 31, 2024 |
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December 31, 2023 |
Sales-type and direct financing leases: |
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Lease receivables, net of unearned income and deferred selling profit |
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$ |
451,861 |
|
|
$ |
409,264 |
Unguaranteed residual values, net of unearned income and deferred selling profit |
|
|
25,726 |
|
|
|
21,484 |
Total net investment in sales-type and direct financing leases |
|
$ |
477,587 |
|
|
$ |
430,748 |
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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 for the following periods ended (dollars in thousands):
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March 31, 2024 |
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December 31, 2023 |
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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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$ |
70,704 |
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$ |
4,440 |
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$ |
71,788 |
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$ |
4,669 |
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Lease liabilities |
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|
76,140 |
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|
6,735 |
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|
|
|
78,043 |
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|
|
7,052 |
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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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11.72 |
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4.83 |
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11.75 |
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|
5.08 |
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Weighted-average discount rate (1) |
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6.25 |
% |
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|
1.17 |
% |
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|
6.21 |
% |
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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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Three months ended March 31, |
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|
2024 |
|
2023 |
Cash paid for amounts included in measurement of lease liabilities: |
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Operating Cash Flows from Finance Leases |
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$ |
20 |
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$ |
24 |
Operating Cash Flows from Operating Leases |
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|
3,403 |
|
|
2,812 |
Financing Cash Flows from Finance Leases |
|
|
317 |
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|
306 |
ROU assets obtained in exchange for lease obligations: |
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Operating leases |
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$ |
1,007 |
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$ |
852 |
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Lease Cost |
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Three months ended March 31, |
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2024 |
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2023 |
Net Operating Lease Cost |
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$ |
3,102 |
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$ |
2,240 |
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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20 |
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|
24 |
Total Lease Cost |
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$ |
3,352 |
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$ |
2,494 |
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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 for the years ending (dollars in thousands):
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March 31, 2024 |
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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 nine months of 2024 |
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$ |
85,120 |
|
$ |
10,009 |
|
$ |
1,021 |
2025 |
|
|
100,667 |
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|
12,670 |
|
|
1,392 |
2026 |
|
|
90,286 |
|
|
10,142 |
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|
1,427 |
2027 |
|
|
90,176 |
|
|
8,776 |
|
|
1,462 |
2028 |
|
|
66,633 |
|
|
7,831 |
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|
1,499 |
Thereafter |
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|
97,729 |
|
|
64,120 |
|
|
127 |
Total undiscounted cash flows |
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|
530,611 |
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|
113,548 |
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|
6,928 |
Less: Adjustments (1) |
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|
78,750 |
|
|
37,408 |
|
|
193 |
Total (2) |
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$ |
451,861 |
|
$ |
76,140 |
|
$ |
6,735 |
(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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