Leases (Tables)

9 Months Ended

Sep. 30, 2022

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


Description	Location in Balance Sheet	September 30, 2022 (1)		December 31, 2021 (1)
Noncurrent assets:		(In thousands)
Chartered-in contracts greater than 12 months	Operating lease right-of-use assets	$	30,281	$	15,039
Office leases	Operating lease right-of-use assets	4,087		1,978
Operating lease right-of-use assets		$	34,368	$	17,017

Liabilities:
Chartered-in contracts greater than 12 months	Current portion of operating lease liabilities	$	29,989	$	15,039
Office leases	Current portion of operating lease liabilities	753		689
Lease liabilities - current portion		$	30,742	$	15,728

Chartered-in contracts greater than 12 months	Noncurrent portion of operating lease liabilities	$	293	$	—
Office leases	Noncurrent portion of operating lease liabilities	3,333		1,282
Lease liabilities - noncurrent portion		$	3,626	$	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 rates used ranged from 1.33% to 8.97%. The weighted average discount rate used to calculate the lease liability as of September 30, 2022 and December 31, 2021 was 5.9% and 1.7%, respectively.

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 nine months ended September 30, 2022 and 2021:


(In thousands)		Three Months Ended				Nine Months Ended
Description	Location in Statement of Operations	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Lease expense for chartered-in contracts less than 12 months	Charter hire expenses	$	11,759	$	5,857	$	43,317	$	13,512
Lease expense for chartered-in contracts greater than 12 months	Charter hire expenses	8,013		4,867		20,451		11,862
	Total charter hire expenses	$	19,772	$	10,724	$	63,768	$	25,374

Lease expense for office leases	General and administrative expenses	$	216	$	189	$	625	$	465

Sublease income from chartered-in contracts greater than 12 months *	Revenues, net	$	8,402	$	7,550	$	25,072	$	14,303

* The sublease income represents only time charter revenue earned on time charter-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 the Condensed Consolidated Statements of Operations for the three and nine months ended September 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 September 30, 2022:


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

Year:
Three months ending December 31, 2022	$	9,306	$	216	$	9,522
2023	21,651		869		22,520
2024	—		874		874
2025	—		871		871
2026	—		871		871
2027	—		574		574
2028	—		500		500
	$	30,957	$	4,775	$	35,732

Present value of lease liability:
Lease liabilities - short term	$	29,989	$	753	$	30,742
Lease liabilities - long term	293		3,333		3,626
Total lease liabilities	$	30,282	$	4,086	$	34,368

Discount based on incremental borrowing rate	$	675	$	689	$	1,364