Leases (Tables)

6 Months Ended

Jun. 30, 2022

Operating lease right-of-use assets and lease liabilities as of June 30, 2022 and December 31, 2021 are as follows:


Description	Location in Balance Sheet	June 30, 2022 (1)		December 31, 2021 (1)
Noncurrent assets:		(In thousands)
Chartered-in contracts greater than 12 months	Operating lease right-of-use assets	$	33,281	$	15,039
Office leases	Operating lease right-of-use assets	2,089		1,978
Operating lease right-of-use assets		$	35,370	$	17,017

Liabilities:
Chartered-in contracts greater than 12 months	Current portion of operating lease liabilities	$	29,112	$	15,039
Office leases	Current portion of operating lease liabilities	796		689
Lease liabilities - current portion		$	29,908	$	15,728

Chartered-in contracts greater than 12 months	Noncurrent portion of operating lease liabilities	$	4,169	$	—
Office leases	Noncurrent portion of operating lease liabilities	1,286		1,282
Lease liabilities - noncurrent portion		$	5,455	$	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 7.15%. The weighted average discount rate used to calculate the lease liability was 4.99%.

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 and six months ended June 30, 2022 and 2021:


(In thousands)		Three Months Ended				Six Months Ended
Description	Location in Statement of Operations	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Lease expense for chartered-in contracts less than 12 months	Charter hire expenses	$	14,419	$	3,158	$	31,558	$	8,645
Lease expense for chartered-in contracts greater than 12 months	Charter hire expenses	6,866		3,012		12,438		6,005
	Total charter hire expenses	$	21,285	$	6,170	$	43,996	$	14,650

Lease expense for office leases	General and administrative expenses	$	212	$	92	$	409	$	276

Sublease income from chartered-in contracts greater than 12 months *	Revenues, net	$	8,344	$	5,607	$	16,670	$	6,753

* 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 and six months ended June 30, 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 June 30, 2022:


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

Year:
Six months ending December 31, 2022	$	17,174	$	433	$	17,607
2023	16,777		617		17,394
2024	—		373		373
2025	—		372		372
2026	—		372		372
2027	—		74		74
	$	33,951	$	2,241	$	36,192

Present value of lease liability:
Lease liabilities - short term	$	29,112	$	796	$	29,908
Lease liabilities - long term	4,169		1,286		5,455
Total lease liabilities	$	33,281	$	2,082	$	35,363

Discount based on incremental borrowing rate	$	670	$	159	$	829