Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

Leases

The Company has operating leases for railcars, computer equipment, an office space, and certain equipment. The Company has no finance leases. Leases with terms of twelve months or less are not recorded on the Company’s Condensed Consolidated Balance Sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. For leases beginning in 2019 and later, lease components are accounted for separately from non-lease components, such as common-area maintenance, based on the relative, observable stand-alone prices of the components.

The Company’s leases have remaining lease terms of one year to five years, some of which may include options to extend the lease. Options to renew the Company’s leases were not considered when assessing the value of the right-of-use assets because the Company was not reasonably certain that it will assert the options to renew the leases. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

The following table provides supplemental balance sheet classification information related to leases:

Leases	Balance Sheet Classification	September 30, 2019
Assets
Operating	Operating lease right-of-use-asset, net	$	5,628
Total leased assets(a)		$	5,628
Liabilities
Current Operating	Accrued expenses	$	2,077
Noncurrent Operating	Operating lease liability	3,598
Total operating lease liability(a)		$	5,675

(a) The Company has no finance lease assets or liabilities.

The following table presents the components of lease costs:

	Quarter Ended September 30,		Year to Date Ended September 30,
	2019		2019
Operating lease costs	$	620	$	1,778
Short-term lease costs	169		722
Sublease income	(99)		(147)
Net lease costs(a)(b)	$	690	$	2,353

(a) The Company has no finance lease costs.

(b) Recorded as a component of Operating income on the Company’s Condensed Consolidated Statement of Income.

The following table presents supplemental cash flow and non-cash activity related to lease information:

	Year to Date Ended September 30,
	2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases(a)	$	1,757
Right-of-use assets obtained in exchange for lease obligations
Operating leases(a)	$	576

(a) The Company has no finance leases.

The following table presents weighted average discount rate and remaining lease term:

	September 30, 2019
Weighted average discount rate (a)
Operating leases	5.88	%
Weighted average remaining lease term(a)
Operating leases	3.1 years

(a) The Company has no finance leases.

As of September 30, 2019, the maturities of operating lease liabilities were as follows:

	September 30, 2019
Remainder of 2019	$	596
2020	2,278
2021	1,684
2022	1,079
2023	496
After 2023	57
Total lease payments	6,190
Less interest	(515)
Total operating lease liability(a)	$	5,675

(a) The Company has no finance leases.

At December 31, 2018, under ASC 840, Leases, the Company’s lease disclosures were:

Operating Leases. The Company leases railcars and other assets under various operating leases. For railcar leases, which are the majority, the Company is generally required to pay all service costs associated with the railcars. Rental payments include minimum rentals, and rental expenses with terms longer than one month were $2,081, $2,372, and $2,561 for 2018, 2017, and 2016, respectively. Annual commitments under non-cancelable operating leases totaled $6,897 for the five years ending December 31, 2023, and an additional $55 thereafter.

The Company’s future minimum rental payments were $2,224, $1,858, $1,357, $977, and $481 for the years ending December 31, 2019, 2020, 2021, 2022, and 2023, respectively.

Maturity of Operating Lease Liabilities	December 31, 2018
2019	$	2,224
2020	1,858
2021	1,357
2022	977
2023	481
After 2023	55
Total lease commitments	$	6,952