LEASES (Tables)
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6 Months Ended |
Jun. 30, 2024 |
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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 as of the periods ended (dollars in thousands):
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June 30, 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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$ |
483,269 |
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|
$ |
409,264 |
Unguaranteed residual values, net of unearned income and deferred selling profit |
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|
28,397 |
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|
|
21,484 |
Total net investment in sales-type and direct financing leases |
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$ |
511,666 |
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|
$ |
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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June 30, 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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$ |
76,778 |
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$ |
4,210 |
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$ |
71,788 |
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$ |
4,669 |
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Lease liabilities |
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|
81,925 |
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6,417 |
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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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11.19 |
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4.58 |
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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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6.17 |
% |
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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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Six months ended June 30, |
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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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$ |
39 |
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$ |
46 |
Operating Cash Flows from Operating Leases |
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|
7,084 |
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|
6,156 |
Financing Cash Flows from Finance Leases |
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|
636 |
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|
612 |
ROU assets obtained in exchange for lease obligations: |
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Operating leases |
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$ |
2,662 |
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$ |
(241) |
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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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2024 |
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2023 |
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2024 |
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2023 |
Net Operating Lease Cost |
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$ |
3,438 |
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$ |
2,358 |
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$ |
6,546 |
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$ |
4,910 |
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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|
19 |
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23 |
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39 |
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|
46 |
Total Lease Cost |
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$ |
3,687 |
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$ |
2,611 |
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$ |
7,044 |
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$ |
5,415 |
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| Maturities of Lessor and Lessee Arrangements Outstanding |
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Three months ended June 30, |
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Six months ended June 30, |
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2024 |
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2023 |
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|
2024 |
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2023 |
Net Operating Lease Cost |
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$ |
3,438 |
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$ |
2,358 |
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$ |
6,546 |
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$ |
4,910 |
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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|
19 |
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|
23 |
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|
39 |
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|
46 |
Total Lease Cost |
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$ |
3,687 |
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$ |
2,611 |
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$ |
7,044 |
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$ |
5,415 |
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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June 30, 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 six months of 2024 |
|
$ |
62,279 |
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$ |
7,450 |
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$ |
683 |
2025 |
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|
112,320 |
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|
14,326 |
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|
1,392 |
2026 |
|
|
101,889 |
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|
11,565 |
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|
1,427 |
2027 |
|
|
101,721 |
|
|
10,156 |
|
|
1,462 |
2028 |
|
|
77,100 |
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|
9,164 |
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|
1,499 |
Thereafter |
|
|
111,743 |
|
|
66,906 |
|
|
128 |
Total undiscounted cash flows |
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|
567,052 |
|
|
119,567 |
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|
6,591 |
Less: Adjustments (1) |
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|
83,783 |
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|
37,642 |
|
|
174 |
Total (2) |
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$ |
483,269 |
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$ |
81,925 |
|
$ |
6,417 |
(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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