Leases

3 Months Ended

Mar. 31, 2020

We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use assets, Operating lease liabilities – short-term, and Operating lease liabilities – long-term in our Condensed Consolidated Balance Sheets. Finance leases are included in Property, plant and equipment – net, Accounts payable, and Other liabilities in our Condensed Consolidated Balance Sheets.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any lease pre-payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease and, when it is reasonably certain that such an option will be exercised, it is included in the determination of the corresponding assets and liabilities. Short-term leases are not recognized on our unaudited Condensed Consolidated Balance Sheets. Lease expense for all operating lease payments is recognized on a straight-line basis over the lease term.

We have lease agreements with lease and non-lease components, which are generally accounted for separately. Additionally, for certain equipment leases, we apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities.

The Company has entered into agreements to lease transportation equipment, storage facilities, office space, dock access and other equipment. The leases have initial terms of up to 20 years with some containing renewal options subject to customary conditions.

The components of lease expense were as follows:


	Three Months Ended March 31, 2020
Finance lease cost:
Amortization of right-of-use asset	$	181
Interest on lease liabilities	15
Total finance lease cost	196
Operating lease cost	11,044
Short-term lease cost	1,873
Variable lease cost	—
Total lease cost	$	13,113

Supplemental cash flow information related to leases was as follows:


	Three Months Ended March 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	10,958
Operating cash flows from finance leases	16
Financing cash flows from finance leases	182
Non-cash information:
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	1,048
Finance leases	5

Supplemental balance sheet information related to leases was as follows:


	March 31, 2020
Operating Leases
Operating lease right-of-use assets	$	127,501
Operating lease liabilities – short term	38,361
Operating lease liabilities – long term	89,759
Total operating lease liabilities	$	128,120
Finance Leases
Property, plant and equipment – gross	$	2,068
Accumulated depreciation	(842)
Property, plant and equipment – net	$	1,226
Accounts payable	700
Other liabilities	543
Total finance lease liabilities	$	1,243
Weighted Average Remaining Lease Term
Operating leases	9.3 years
Finance leases	2.0 years
Weighted Average Discount Rate
Operating leases	5.77		%
Finance leases	4.76		%

Maturities of lease liabilities are as follows:


Year Ending December 31,	Operating Leases		Finance Leases
2020 (remainder)	$	33,059	$	562
2021	32,932		528
2022	22,814		195
2023	13,335		11
2024	11,468		8
Thereafter	61,561		—
Total lease payments	175,169		1,304
Less imputed interest	(47,049)		(61)
Total	$	128,120	$	1,243

Leases

The components of lease expense were as follows:


	Three Months Ended March 31, 2020
Finance lease cost:
Amortization of right-of-use asset	$	181
Interest on lease liabilities	15
Total finance lease cost	196
Operating lease cost	11,044
Short-term lease cost	1,873
Variable lease cost	—
Total lease cost	$	13,113

Supplemental cash flow information related to leases was as follows:


	Three Months Ended March 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	10,958
Operating cash flows from finance leases	16
Financing cash flows from finance leases	182
Non-cash information:
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	1,048
Finance leases	5

Supplemental balance sheet information related to leases was as follows:


	March 31, 2020
Operating Leases
Operating lease right-of-use assets	$	127,501
Operating lease liabilities – short term	38,361
Operating lease liabilities – long term	89,759
Total operating lease liabilities	$	128,120
Finance Leases
Property, plant and equipment – gross	$	2,068
Accumulated depreciation	(842)
Property, plant and equipment – net	$	1,226
Accounts payable	700
Other liabilities	543
Total finance lease liabilities	$	1,243
Weighted Average Remaining Lease Term
Operating leases	9.3 years
Finance leases	2.0 years
Weighted Average Discount Rate
Operating leases	5.77		%
Finance leases	4.76		%

Maturities of lease liabilities are as follows:


Year Ending December 31,	Operating Leases		Finance Leases
2020 (remainder)	$	33,059	$	562
2021	32,932		528
2022	22,814		195
2023	13,335		11
2024	11,468		8
Thereafter	61,561		—
Total lease payments	175,169		1,304
Less imputed interest	(47,049)		(61)
Total	$	128,120	$	1,243