Leases (Tables)

3 Months Ended

Mar. 31, 2022

Operating lease right-of-use assets and lease liabilities as of March 31, 2022 and December 31, 2021 are as follows:


Description	Location in Balance Sheet	March 31, 2022 (1)		December 31, 2021 (1)
Noncurrent assets:		(In thousands)
Chartered-in contracts greater than 12 months	Operating lease right-of-use assets	$	16,377	$	15,039
Office leases	Operating lease right-of-use assets	2,277		1,978
Operating lease right-of-use assets		$	18,654	$	17,017

Liabilities:
Chartered-in contracts greater than 12 months	Current portion of operating lease liabilities	$	14,966	$	15,039
Office leases	Current portion of operating lease liabilities	783		689
Lease liabilities - current portion		$	15,749	$	15,728

Chartered-in contracts greater than 12 months	Noncurrent portion of operating lease liabilities	$	1,412	$	—
Office leases	Noncurrent portion of operating lease liabilities	$	1,487	$	1,282
Lease liabilities - noncurrent portion		$	2,899	$	1,282

(1) The Operating lease right-of-use assets and Operating lease liabilities represent the present value of lease payments for the remaining term of the lease. The discount rate used ranged from 1.33% to 6.08%. The weighted average discount rate used to calculate the lease liability was 2.88%.

Charter Hire Expense

The table below presents the components of the Company’s lease expenses and sublease income on a gross basis earned from chartered-in contracts greater than 12 months for the three months ended March 31, 2022 and 2021:


(In thousands)		Three Months Ended
Description	Location in Statement of Operations	March 31, 2022		March 31, 2021
Lease expense for chartered-in contracts less than 12 months	Charter hire expenses	$	17,139	$	5,487
Lease expense for chartered-in contracts greater than 12 months	Charter hire expenses	5,572		2,993
	Total charter hire expenses	$	22,711	$	8,480

Lease expense for office leases	General and administrative expenses	$	197	$	184

Sublease income from chartered-in contracts greater than 12 months *	Revenues, net	$	8,327	$	1,146

* The sublease income represents only time charter revenue earned on the chartered-in contracts with terms more than 12 months. There is additional revenue earned from voyage charters on the same chartered-in contracts which is recorded in Revenues, net in our Condensed Consolidated Statements of Operations for the three months ended March 31, 2022 and 2021.

Future Minimum Lease Payments

The table below provides the total amount of remaining lease payments on an undiscounted basis on our chartered-in contracts and office leases greater than 12 months as of March 31, 2022:


Supplemental Disclosure Information	Chartered-in contracts greater than 12 months		Office leases		Total Operating leases
(In thousands, except percentages)

Year:
Nine months ending December 31, 2022	$	13,042	$	645	$	13,687
2023	3,472		617		4,089
2024	—		373		373
2025	—		372		372
2026	—		372		372
2027	—		74		74
	$	16,514	$	2,453	$	18,967

Present value of lease liability:
Lease liabilities - short term	$	14,966	$	783	$	15,749
Lease liabilities - long term	1,412		1,487		2,899
Total lease liabilities	$	16,378	$	2,270	$	18,648

Discount based on incremental borrowing rate	$	136	$	183	$	319