v3.22.2.2
Leases
 9 Months Ended
Sep. 30, 2022
Leases [Abstract]  
Leases
Note 8 — Leases
Operating Leases
The Company has operating leases, primarily for real estate and equipment, with terms that vary from one to nine years, included in operating lease costs in the table below. The operating leases are included in Operating leases, right-of-use assets, Other current liabilities and Operating leases, right-of-use obligations in the Condensed Consolidated Balance Sheets.
Lease costs associated with yard and field offices are included in cost of services and executive offices are included in general and administrative costs in the Condensed Consolidated Statements of Operations. Lease costs and other information related to operating leases for the three and nine months ended September 30, 2022 and 2021, are as follows (in millions):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Short-term lease costs$4.4 $1.1 $9.9 $1.9 
Operating lease costs$1.1 $0.5 $2.2 $1.3 
Operating cash outflows from operating leases$0.7 $0.4 $1.9 $1.1 
Weighted average remaining lease term4.7 years5.2 years
Weighted average discount rate7.9 %8.8 %
Aggregate future minimum lease payments under operating leases are as follows (in millions):
For the twelve months ending September 30,
Total
2023$3.0 
20243.0 
20253.0 
20262.9 
20272.3 
Thereafter0.3 
Total future minimum lease payments14.5 
Less: amount representing interest(2.2)
Present value of future minimum lease payments12.3 
Less: current portion of operating lease obligations(2.2)
Long-term portion of operating lease obligations$10.1 
Finance Leases
The Company leases certain assets, primarily automobiles, under finance leases with terms that are generally three to five years. The assets and liabilities under finance leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the assets. The assets are amortized over the shorter of the estimated useful lives or over the lease term. The finance leases are included in Property and equipment, net, Other current liabilities and Other long-term liabilities in the Condensed Consolidated Balance Sheets.
Lease costs and other information related to finance leases for the three and nine months ended September 30, 2022 and 2021, are as follows (in millions):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Amortization of finance leases$0.5 $0.6 $1.5 $2.2 
Interest on lease liabilities$0.2 $0.1 $0.6 $0.3 
Financing cash outflows from finance leases$1.1 $0.2 $3.4 $2.4 
Weighted average remaining lease term1.4 years1.5 years
Weighted average discount rate2.6 %2.8 %
Aggregate future minimum lease payments under finance leases are as follows (in millions):
For the twelve months ending September 30,Total
2023$4.0 
20242.1 
20250.8 
20260.1 
Total future minimum lease payments7.0 
Less: amount representing interest(0.4)
Present value of future minimum lease payments6.6 
Less: current portion of finance lease obligations(3.8)
Long-term portion of finance lease obligations$2.8 
Note 9 — Other Financing Liabilities
During the three and nine months ended September 30, 2021, the Company entered into an agreement to sell a parcel of land and a building attached thereto, and subsequently leased back the property. The Company received cash of $12.1 million from the sale, and the lease has a 15-year term with an annual rent escalation of two percent per annum.
During the three and nine months ended September 30, 2021, the Company entered into an agreement to sell certain other fixed assets and subsequently leased back such assets. The Company received cash of $3.5 million to be paid over 18 to 60 months.
These sales did not qualify for sale accounting, therefore these leases were classified as finance leases and no gain or loss was recorded. The net book value of the assets remained in Property and equipment, net and are depreciating over their original useful lives.
As of September 30, 2022, aggregate future lease payments of the financing liabilities are as follows (in millions):
For the twelve months ending September 30,
Total
2023$0.8 
20240.6 
20250.7 
20260.7 
20270.8 
Thereafter9.0 
Total future minimum lease payments$12.6 
Leases
Note 8 — Leases
Operating Leases
The Company has operating leases, primarily for real estate and equipment, with terms that vary from one to nine years, included in operating lease costs in the table below. The operating leases are included in Operating leases, right-of-use assets, Other current liabilities and Operating leases, right-of-use obligations in the Condensed Consolidated Balance Sheets.
Lease costs associated with yard and field offices are included in cost of services and executive offices are included in general and administrative costs in the Condensed Consolidated Statements of Operations. Lease costs and other information related to operating leases for the three and nine months ended September 30, 2022 and 2021, are as follows (in millions):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Short-term lease costs$4.4 $1.1 $9.9 $1.9 
Operating lease costs$1.1 $0.5 $2.2 $1.3 
Operating cash outflows from operating leases$0.7 $0.4 $1.9 $1.1 
Weighted average remaining lease term4.7 years5.2 years
Weighted average discount rate7.9 %8.8 %
Aggregate future minimum lease payments under operating leases are as follows (in millions):
For the twelve months ending September 30,
Total
2023$3.0 
20243.0 
20253.0 
20262.9 
20272.3 
Thereafter0.3 
Total future minimum lease payments14.5 
Less: amount representing interest(2.2)
Present value of future minimum lease payments12.3 
Less: current portion of operating lease obligations(2.2)
Long-term portion of operating lease obligations$10.1 
Finance Leases
The Company leases certain assets, primarily automobiles, under finance leases with terms that are generally three to five years. The assets and liabilities under finance leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the assets. The assets are amortized over the shorter of the estimated useful lives or over the lease term. The finance leases are included in Property and equipment, net, Other current liabilities and Other long-term liabilities in the Condensed Consolidated Balance Sheets.
Lease costs and other information related to finance leases for the three and nine months ended September 30, 2022 and 2021, are as follows (in millions):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Amortization of finance leases$0.5 $0.6 $1.5 $2.2 
Interest on lease liabilities$0.2 $0.1 $0.6 $0.3 
Financing cash outflows from finance leases$1.1 $0.2 $3.4 $2.4 
Weighted average remaining lease term1.4 years1.5 years
Weighted average discount rate2.6 %2.8 %
Aggregate future minimum lease payments under finance leases are as follows (in millions):
For the twelve months ending September 30,Total
2023$4.0 
20242.1 
20250.8 
20260.1 
Total future minimum lease payments7.0 
Less: amount representing interest(0.4)
Present value of future minimum lease payments6.6 
Less: current portion of finance lease obligations(3.8)
Long-term portion of finance lease obligations$2.8