v3.24.2
Leases
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Leases Leases
The Company has operating and finance leases primarily for vehicles, equipment, railcars, office space, and facilities. The terms and conditions for these leases vary by the type of underlying asset.
Certain leases include variable lease payments for items such as property taxes, insurance, maintenance, and other operating expenses associated with leased assets. Payments that vary based on an index or rate are included in the measurement of lease assets and liabilities at the rate as of the commencement date. All other variable lease payments are excluded from the measurement of lease assets and liabilities, and are recognized in the period in which the obligation for those payments is incurred.
The components of lease expense for the three and six months ended June 30, 2024 and 2023 were as follows:
Three Months Ended June 30,Six Months Ended June 30,
($ in thousands)2024202320242023
Finance lease cost:
Amortization of right-of-use assets$9,933 $2,328 $18,844 $4,564 
Interest on lease liabilities3,920 695 7,293 1,389 
Operating lease cost8,656 10,064 17,691 20,638 
Variable lease cost1,621 1,271 3,388 2,517 
Short-term lease cost860 2,354 1,882 4,405 
Total lease cost, net$24,990 $16,712 $49,098 $33,513 

Supplemental cash flow and other information related to leases for the three and six months ended June 30, 2024 and 2023 were as follows:
Three Months Ended June 30,Six Months Ended June 30,
($ in thousands)2024202320242023
Cash paid for amounts included in measurement of liabilities:
Operating leases$8,742 $10,383 $17,797 $20,260 
Finance leases15,102 3,523 27,729 6,461 
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases5,458 12,358 9,700 16,920 
Finance leases51,367 14,384 81,505 17,173 
During the three months ended June 30, 2024, the Company amended certain operating leases, the change in terms of which caused the leases to be reclassified as finance leases. In connection with the amendments, the Company wrote-off a de minimis amount of operating lease right-of-use assets and liabilities. Additionally, the Company recognized finance lease right-of-use assets of $3.8 million and liabilities of $3.8 million. There was no gain or loss recognized as a result of these amendments. During the three months ended June 30, 2023, the Company did not reclassify any operating or finance leases.
Lease terms and discount rates as of June 30, 2024 and December 31, 2023 were as follows:
June 30, 2024December 31, 2023
Weighted-average remaining lease term:
Operating leases4.1 years4.3 years
Finance leases3.4 years3.3 years
Weighted-average discount rate:
Operating leases6.4 %6.0 %
Finance leases7.8 %8.0 %
Future minimum lease commitments as of June 30, 2024 are as follows:
($ in thousands)FinanceOperating
Remainder of 2024$35,736 $16,427 
202571,581 31,670 
202673,664 20,821 
202742,995 10,979 
202833,825 3,132 
Thereafter17,735 12,568 
Total lease payments275,536 95,597 
Less imputed interest(38,924)(10,908)
Total$236,612 $84,689 

The Company’s vehicle leases typically include a residual value guarantee. For the Company’s vehicle leases classified as operating leases, the total residual value guaranteed as of June 30, 2024 is $12.6 million; the payment is not probable and therefore has not been included in the measurement of the lease liability and right-of-use asset. For vehicle leases that are classified as finance leases, the Company includes the residual value guarantee, estimated in the lease agreement, in the financing lease liability.
Lessor Arrangements
The Company leases dry and wet sand containers and conveyor belts to customers through operating leases, where the lessor for tax purposes is considered to be the owner of the equipment during the term of the lease. The lease agreements do not include options for the lessee to purchase the underlying asset at the end of the lease term for either a stated fixed price or fair market value. However, some of the leases contain a termination clause in which the customer can cancel the contract. The leases can be subject to variable lease payments if the customer requests more units than what is agreed upon in the lease. The Company does not record any lease assets or liabilities related to these variable items.
The carrying amount of equipment leased to others, included in property, plant and equipment, under operating leases as of June 30, 2024 and December 31, 2023 were as follows:
($ in thousands)June 30, 2024December 31, 2023
Equipment leased to others - at original cost$143,117 $138,781 
Less: Accumulated depreciation(33,799)(25,819)
Equipment leased to others - net$109,318 $112,962 
Future payments receivable for operating leases as of June 30, 2024 are as follows:
($ in thousands)
Remainder of 2024$3,650 
20255,412 
20262,239 
2027— 
2028— 
Thereafter— 
Total$11,301 
Revenues from operating leases for the three and six months ended June 30, 2024 were $8.7 million and $17.8 million, respectively. Revenues from operating leases for the three and six months ended June 30, 2023 were $9.6 million and $18.2 million, respectively
Leases Leases
The Company has operating and finance leases primarily for vehicles, equipment, railcars, office space, and facilities. The terms and conditions for these leases vary by the type of underlying asset.
Certain leases include variable lease payments for items such as property taxes, insurance, maintenance, and other operating expenses associated with leased assets. Payments that vary based on an index or rate are included in the measurement of lease assets and liabilities at the rate as of the commencement date. All other variable lease payments are excluded from the measurement of lease assets and liabilities, and are recognized in the period in which the obligation for those payments is incurred.
The components of lease expense for the three and six months ended June 30, 2024 and 2023 were as follows:
Three Months Ended June 30,Six Months Ended June 30,
($ in thousands)2024202320242023
Finance lease cost:
Amortization of right-of-use assets$9,933 $2,328 $18,844 $4,564 
Interest on lease liabilities3,920 695 7,293 1,389 
Operating lease cost8,656 10,064 17,691 20,638 
Variable lease cost1,621 1,271 3,388 2,517 
Short-term lease cost860 2,354 1,882 4,405 
Total lease cost, net$24,990 $16,712 $49,098 $33,513 

Supplemental cash flow and other information related to leases for the three and six months ended June 30, 2024 and 2023 were as follows:
Three Months Ended June 30,Six Months Ended June 30,
($ in thousands)2024202320242023
Cash paid for amounts included in measurement of liabilities:
Operating leases$8,742 $10,383 $17,797 $20,260 
Finance leases15,102 3,523 27,729 6,461 
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases5,458 12,358 9,700 16,920 
Finance leases51,367 14,384 81,505 17,173 
During the three months ended June 30, 2024, the Company amended certain operating leases, the change in terms of which caused the leases to be reclassified as finance leases. In connection with the amendments, the Company wrote-off a de minimis amount of operating lease right-of-use assets and liabilities. Additionally, the Company recognized finance lease right-of-use assets of $3.8 million and liabilities of $3.8 million. There was no gain or loss recognized as a result of these amendments. During the three months ended June 30, 2023, the Company did not reclassify any operating or finance leases.
Lease terms and discount rates as of June 30, 2024 and December 31, 2023 were as follows:
June 30, 2024December 31, 2023
Weighted-average remaining lease term:
Operating leases4.1 years4.3 years
Finance leases3.4 years3.3 years
Weighted-average discount rate:
Operating leases6.4 %6.0 %
Finance leases7.8 %8.0 %
Future minimum lease commitments as of June 30, 2024 are as follows:
($ in thousands)FinanceOperating
Remainder of 2024$35,736 $16,427 
202571,581 31,670 
202673,664 20,821 
202742,995 10,979 
202833,825 3,132 
Thereafter17,735 12,568 
Total lease payments275,536 95,597 
Less imputed interest(38,924)(10,908)
Total$236,612 $84,689 

The Company’s vehicle leases typically include a residual value guarantee. For the Company’s vehicle leases classified as operating leases, the total residual value guaranteed as of June 30, 2024 is $12.6 million; the payment is not probable and therefore has not been included in the measurement of the lease liability and right-of-use asset. For vehicle leases that are classified as finance leases, the Company includes the residual value guarantee, estimated in the lease agreement, in the financing lease liability.
Lessor Arrangements
The Company leases dry and wet sand containers and conveyor belts to customers through operating leases, where the lessor for tax purposes is considered to be the owner of the equipment during the term of the lease. The lease agreements do not include options for the lessee to purchase the underlying asset at the end of the lease term for either a stated fixed price or fair market value. However, some of the leases contain a termination clause in which the customer can cancel the contract. The leases can be subject to variable lease payments if the customer requests more units than what is agreed upon in the lease. The Company does not record any lease assets or liabilities related to these variable items.
The carrying amount of equipment leased to others, included in property, plant and equipment, under operating leases as of June 30, 2024 and December 31, 2023 were as follows:
($ in thousands)June 30, 2024December 31, 2023
Equipment leased to others - at original cost$143,117 $138,781 
Less: Accumulated depreciation(33,799)(25,819)
Equipment leased to others - net$109,318 $112,962 
Future payments receivable for operating leases as of June 30, 2024 are as follows:
($ in thousands)
Remainder of 2024$3,650 
20255,412 
20262,239 
2027— 
2028— 
Thereafter— 
Total$11,301 
Revenues from operating leases for the three and six months ended June 30, 2024 were $8.7 million and $17.8 million, respectively. Revenues from operating leases for the three and six months ended June 30, 2023 were $9.6 million and $18.2 million, respectively
Leases Leases
The Company has operating and finance leases primarily for vehicles, equipment, railcars, office space, and facilities. The terms and conditions for these leases vary by the type of underlying asset.
Certain leases include variable lease payments for items such as property taxes, insurance, maintenance, and other operating expenses associated with leased assets. Payments that vary based on an index or rate are included in the measurement of lease assets and liabilities at the rate as of the commencement date. All other variable lease payments are excluded from the measurement of lease assets and liabilities, and are recognized in the period in which the obligation for those payments is incurred.
The components of lease expense for the three and six months ended June 30, 2024 and 2023 were as follows:
Three Months Ended June 30,Six Months Ended June 30,
($ in thousands)2024202320242023
Finance lease cost:
Amortization of right-of-use assets$9,933 $2,328 $18,844 $4,564 
Interest on lease liabilities3,920 695 7,293 1,389 
Operating lease cost8,656 10,064 17,691 20,638 
Variable lease cost1,621 1,271 3,388 2,517 
Short-term lease cost860 2,354 1,882 4,405 
Total lease cost, net$24,990 $16,712 $49,098 $33,513 

Supplemental cash flow and other information related to leases for the three and six months ended June 30, 2024 and 2023 were as follows:
Three Months Ended June 30,Six Months Ended June 30,
($ in thousands)2024202320242023
Cash paid for amounts included in measurement of liabilities:
Operating leases$8,742 $10,383 $17,797 $20,260 
Finance leases15,102 3,523 27,729 6,461 
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases5,458 12,358 9,700 16,920 
Finance leases51,367 14,384 81,505 17,173 
During the three months ended June 30, 2024, the Company amended certain operating leases, the change in terms of which caused the leases to be reclassified as finance leases. In connection with the amendments, the Company wrote-off a de minimis amount of operating lease right-of-use assets and liabilities. Additionally, the Company recognized finance lease right-of-use assets of $3.8 million and liabilities of $3.8 million. There was no gain or loss recognized as a result of these amendments. During the three months ended June 30, 2023, the Company did not reclassify any operating or finance leases.
Lease terms and discount rates as of June 30, 2024 and December 31, 2023 were as follows:
June 30, 2024December 31, 2023
Weighted-average remaining lease term:
Operating leases4.1 years4.3 years
Finance leases3.4 years3.3 years
Weighted-average discount rate:
Operating leases6.4 %6.0 %
Finance leases7.8 %8.0 %
Future minimum lease commitments as of June 30, 2024 are as follows:
($ in thousands)FinanceOperating
Remainder of 2024$35,736 $16,427 
202571,581 31,670 
202673,664 20,821 
202742,995 10,979 
202833,825 3,132 
Thereafter17,735 12,568 
Total lease payments275,536 95,597 
Less imputed interest(38,924)(10,908)
Total$236,612 $84,689 

The Company’s vehicle leases typically include a residual value guarantee. For the Company’s vehicle leases classified as operating leases, the total residual value guaranteed as of June 30, 2024 is $12.6 million; the payment is not probable and therefore has not been included in the measurement of the lease liability and right-of-use asset. For vehicle leases that are classified as finance leases, the Company includes the residual value guarantee, estimated in the lease agreement, in the financing lease liability.
Lessor Arrangements
The Company leases dry and wet sand containers and conveyor belts to customers through operating leases, where the lessor for tax purposes is considered to be the owner of the equipment during the term of the lease. The lease agreements do not include options for the lessee to purchase the underlying asset at the end of the lease term for either a stated fixed price or fair market value. However, some of the leases contain a termination clause in which the customer can cancel the contract. The leases can be subject to variable lease payments if the customer requests more units than what is agreed upon in the lease. The Company does not record any lease assets or liabilities related to these variable items.
The carrying amount of equipment leased to others, included in property, plant and equipment, under operating leases as of June 30, 2024 and December 31, 2023 were as follows:
($ in thousands)June 30, 2024December 31, 2023
Equipment leased to others - at original cost$143,117 $138,781 
Less: Accumulated depreciation(33,799)(25,819)
Equipment leased to others - net$109,318 $112,962 
Future payments receivable for operating leases as of June 30, 2024 are as follows:
($ in thousands)
Remainder of 2024$3,650 
20255,412 
20262,239 
2027— 
2028— 
Thereafter— 
Total$11,301 
Revenues from operating leases for the three and six months ended June 30, 2024 were $8.7 million and $17.8 million, respectively. Revenues from operating leases for the three and six months ended June 30, 2023 were $9.6 million and $18.2 million, respectively