Lineage Inc
For the period ended Jun 30, 2024. Filed Aug 21, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 21, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Leases
(13)Leases
The Company leases real estate, most significantly warehouses for use in operations, as well as equipment for use within owned and leased warehouses. The Company also leases vehicles, trailers and other equipment. The Company has not pledged any assets as collateral related to the Company’s existing leases as of June 30, 2024 and December 31, 2023.
Right-of-use asset balances are as follows:
| (in millions) | June 30, 2024 | December 31, 2023 |
|---|---|---|
| Finance lease right-of-use assets | $1,622 | $1,608 |
| Less: accumulated amortization | (403) | (365) |
| Finance lease right-of-use assets, net | $1,219 | $1,243 |
| Operating lease right-of-use assets | $894 | $892 |
| Less: accumulated amortization | (189) | (168) |
| Operating lease right-of-use assets, net | $705 | $724 |
Lease liabilities are presented in the following line items in the condensed consolidated balance sheets:
| June 30, 2024 | December 31, 2023 | |||
|---|---|---|---|---|
| (in millions) | Finance Leases | Operating Leases | Finance Leases | Operating Leases |
| Accounts payable and accrued liabilities | $72 | $53 | $76 | $60 |
| Long-term finance lease obligations | 1,291 | — | 1,305 | — |
| Long-term operating lease obligations | — | 677 | — | 692 |
| Total lease obligations | $1,363 | $730 | $1,381 | $752 |
Maturities of lease liabilities for each of the next five years and thereafter as of June 30, 2024 are as follows (in millions):
| Years Ending December 31: | Finance Leases | Operating Leases |
|---|---|---|
| 2024 (six months remaining) | $82 | $50 |
| 2025 | 159 | 97 |
| 2026 | 157 | 95 |
| 2027 | 151 | 93 |
| 2028 | 142 | 85 |
| 2029 and thereafter | 1,687 | 779 |
| Total lease payments | 2,378 | 1,199 |
| Less imputed interest | (1,015) | (469) |
| Total | $1,363 | $730 |
Supplemental condensed consolidated balance sheet information related to leases is as follows:
| June 30, | December 31, | |
|---|---|---|
| 2024 | 2023 | |
| Weighted average remaining lease term (in years): | ||
| Finance | 15.9 | 16.5 |
| Operating | 15.5 | 15.9 |
| Weighted average discount rate: | ||
| Finance | 6.8% | 6.8% |
| Operating | 6.5% | 6.5% |
The components of lease expense are as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | |||
|---|---|---|---|---|
| (in millions) | 2024 | 2023 | 2024 | 2023 |
| Finance lease cost: | ||||
| Amortization of ROU assets | $24 | $23 | $48 | $46 |
| Interest on lease liabilities | 23 | 23 | 46 | 46 |
| Operating lease cost | 29 | 29 | 58 | 57 |
| Variable & short-term lease cost | 10 | 6 | 19 | 12 |
| Sublease income | (7) | (3) | (11) | (5) |
| Total lease cost | $79 | $78 | $160 | $156 |
Supplemental cash flow information related to leases is as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | |||
|---|---|---|---|---|
| (in millions) | 2024 | 2023 | 2024 | 2023 |
| Cash paid for amounts included in the measurement of lease liability | ||||
| Operating cash flows from finance leases | $24 | $23 | $46 | $45 |
| Finance cash flows from finance leases | 18 | 15 | 32 | 25 |
| Operating cash flows from operating leases | 27 | 24 | 50 | 48 |
| ROU assets obtained in exchange for lease obligations (excluding the effect of acquisitions) | ||||
| Finance leases | $22 | $— | $37 | $3 |
| Operating leases | 8 | 55 | 12 | 73 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.