Leases

12 Months Ended

Dec. 31, 2019

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 Consolidated Balance Sheets. 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 estimated incremental collateralized 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	December 31, 2019
Assets
Operating	Operating lease right-of-use-assets, net	$	6,490
Total leased assets		$	6,490

Liabilities
Current Operating	Accrued expenses	$	2,244
Noncurrent Operating	Long-term operating lease liabilitites	4,267
Total operating lease liability		$	6,511

The following table presents the components of lease costs:


	Year Ended December 31,
			2019
Operating lease costs	$	2,434
Short-term lease costs	767
Sublease income	(247)
Net lease costs^(a)	$	2,954

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

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


	Year Ended December 31,
			2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	2,414

Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	2,064

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



	December 31, 2019
Weighted average discount rate
Operating leases	5.77	%

Weighted average remaining lease term
Operating leases	3.3 years

As of December 31, 2019, the maturities of operating lease liabilities were as follows:


2020	$	2,546
2021	2,023
2022	1,417
2023	835
2024	311
Thereafter	—
Total lease payments	7,132
Less interest	(621)
Total operating lease liability	$	6,511

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 and $2,372 for 2018 and 2017, 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