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Leases
3 Months Ended
Mar. 31, 2021
Leases [Abstract]  
Leases
(6) Leases

Lease Overview

We lease railcars and certain facilities to support the Partnership’s operations. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 20 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of our lease agreements include rental payments which are adjusted periodically for factors such as inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Additionally, we do not have any material lessor or sub-leasing arrangements.

Balance Sheet Summary as of March 31, 2021 and December 31, 2020

The following tables summarize the ROU asset and lease liability balances for the Partnership’s operating and finance leases at March 31, 2021 and December 31, 2020:
March 31, 2021December 31, 2020
(in thousands)Operating LeasesFinance LeasesOperating LeasesFinance Leases
ROU asset, net
Railcars$6,558 $ $7,327 $— 
Real estate and other2,944 95 3,040 101 
Lease liability
Railcars$6,931 $ $7,696 $— 
Real estate and other817 70 867 105 
Lease Expense Summary for the Three Months Ended March 31, 2021 and 2020

We recognize lease expense on a straight-line basis over the lease term and short-term lease expense within Direct operating expenses (exclusive of depreciation and amortization). For the three months ended March 31, 2021 and 2020, we recognized lease expense comprised of the following components:
Three Months Ended
March 31,
(in thousands)20212020
Operating lease expense$916 $1,111 
Finance lease expense:
Amortization of ROU asset$22 $27 
Interest expense on lease liability1 
Short-term lease expense$160 $77 

Lease Terms and Discount Rates

The following outlines the remaining lease terms and discount rates used in the measurement of the Partnership’s ROU assets and liabilities at March 31, 2021 and December 31, 2020:
March 31, 2021December 31, 2020
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Weighted-average remaining lease term2.7 years1.1 years2.9 years1.3 years
Weighted-average discount rate5.1 %3.9 %5.1 %4.0 %

Maturities of Lease Liabilities

The following summarizes the remaining minimum lease payments through maturity of the Partnership’s ROU assets and liabilities at March 31, 2021:
(in thousands)Operating LeasesFinance Leases
Remainder of 2021$2,754 $71 
20223,236  
20231,367  
2024684  
2025263  
Thereafter  
Total lease payments 8,304 71 
Less: imputed interest(556)(1)
Total lease liability$7,748 $70 
Leases
(6) Leases

Lease Overview

We lease railcars and certain facilities to support the Partnership’s operations. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 20 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of our lease agreements include rental payments which are adjusted periodically for factors such as inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Additionally, we do not have any material lessor or sub-leasing arrangements.

Balance Sheet Summary as of March 31, 2021 and December 31, 2020

The following tables summarize the ROU asset and lease liability balances for the Partnership’s operating and finance leases at March 31, 2021 and December 31, 2020:
March 31, 2021December 31, 2020
(in thousands)Operating LeasesFinance LeasesOperating LeasesFinance Leases
ROU asset, net
Railcars$6,558 $ $7,327 $— 
Real estate and other2,944 95 3,040 101 
Lease liability
Railcars$6,931 $ $7,696 $— 
Real estate and other817 70 867 105 
Lease Expense Summary for the Three Months Ended March 31, 2021 and 2020

We recognize lease expense on a straight-line basis over the lease term and short-term lease expense within Direct operating expenses (exclusive of depreciation and amortization). For the three months ended March 31, 2021 and 2020, we recognized lease expense comprised of the following components:
Three Months Ended
March 31,
(in thousands)20212020
Operating lease expense$916 $1,111 
Finance lease expense:
Amortization of ROU asset$22 $27 
Interest expense on lease liability1 
Short-term lease expense$160 $77 

Lease Terms and Discount Rates

The following outlines the remaining lease terms and discount rates used in the measurement of the Partnership’s ROU assets and liabilities at March 31, 2021 and December 31, 2020:
March 31, 2021December 31, 2020
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Weighted-average remaining lease term2.7 years1.1 years2.9 years1.3 years
Weighted-average discount rate5.1 %3.9 %5.1 %4.0 %

Maturities of Lease Liabilities

The following summarizes the remaining minimum lease payments through maturity of the Partnership’s ROU assets and liabilities at March 31, 2021:
(in thousands)Operating LeasesFinance Leases
Remainder of 2021$2,754 $71 
20223,236  
20231,367  
2024684  
2025263  
Thereafter  
Total lease payments 8,304 71 
Less: imputed interest(556)(1)
Total lease liability$7,748 $70