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Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases

Our leasing activity primarily consists being a lessee of railcars and office space. We have in excess of 1,300 railcars under lease, Typically, the initial term for such leases ranges from 2 years to 10 years, and the majority do not include any renewal options. Substantially all our railcar leases are operating leases with a limited number classified as financing leases.

We currently lease the office space housing our headquarters in Oklahoma City, Oklahoma. In November 2023, we modified the then existing lease by extending the lease term, adding additional square footage and revising the rental rate. The modified lease, which is an operating lease, has a term that ends in February 2031 with a five-year renewal option. The incremental lease liability recognized as a result of the modification was $1.9 million with a corresponding increase to the right of use asset.

From time to time when we have excess freight capacity, we may sublease a portion of our railcars fleet on a short term basis to other parties. The income for these subleases is recorded as a component of "Other (income) expense, net" in our consolidated statement of operations.

 

 

 

 

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(Dollars In Thousands)

 

Components of lease expense:

 

 

 

 

 

 

 

 

 

Operating lease cost

 

$

11,071

 

 

$

10,692

 

 

$

9,998

 

Short-term lease cost

 

 

3,399

 

 

 

3,634

 

 

 

2,243

 

Other cost (1)

 

 

391

 

 

 

275

 

 

 

157

 

Sublease income

 

 

(5,632

)

 

 

—

 

 

 

—

 

Total lease cost

 

$

9,229

 

 

$

14,601

 

 

$

12,398

 

Supplemental cash flow information related to leases:

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

10,948

 

 

$

10,552

 

 

$

10,290

 

Operating cash flows from finance leases

 

 

78

 

 

 

56

 

 

 

33

 

Financing cash flows from finance leases

 

 

231

 

 

 

168

 

 

 

92

 

Cash paid for amounts included in the measurement of lease liabilities

 

$

11,257

 

 

$

10,776

 

 

$

10,415

 

 

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for new operating lease liabilities

 

$

11,969

 

 

$

4,347

 

 

$

9,549

 

 

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for new finance lease liabilities

 

$

46

 

 

$

932

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

Other lease-related information:

 

 

 

 

 

 

 

 

 

Weighted-average remaining lease term - operating leases (in years)

 

 

4.3

 

 

 

3.3

 

 

 

4.0

 

Weighted-average remaining lease term - finance leases (in years)

 

 

4.0

 

 

 

4.9

 

 

 

3.2

 

Weighted-average discount rate - operating leases

 

 

8.26

%

 

 

8.25

%

 

 

8.44

%

Weighted-average discount rate - finance leases

 

 

7.53

%

 

 

7.54

%

 

 

8.69

%

 

_____________________________

(1)
Includes variable and finance lease costs.

As of December 31, 2023, future minimum lease payments due under ASC 842 are summarized by fiscal year in the table below:

 

 

Operating Leases

 

 

Finance Leases

 

 

 

(In Thousands)

 

2024

 

$

10,443

 

 

$

292

 

2025

 

 

6,526

 

 

 

335

 

2026

 

 

4,147

 

 

 

204

 

2027

 

 

2,993

 

 

 

137

 

2028

 

 

1,661

 

 

 

79

 

Thereafter

 

 

3,792

 

 

 

53

 

Total lease payments

 

 

29,562

 

 

 

1,100

 

Less imputed interest

 

 

(4,693

)

 

 

(147

)

Present value of lease liabilities

 

$

24,869

 

 

$

953

 

As of December 31, 2023, we have executed operating leases with lease terms greater than one year, totaling approximately $0.8 million which have not yet commenced.