Leases

3 Months Ended

Mar. 31, 2021

LEASES We have operating leases for some of our transportation equipment, office space, warehouse space, operating locations, and machinery and equipment. We have finance leases for certain storage tanks and equipment rentals. These finance leases are not material to our financial statements. Our leases have remaining lease terms ranging up to 13 years. Some of our leases have options to extend for various periods, while some have termination options with prior notice of generally 30 days or six months. The office space, warehouse space, operating location leases, and machinery and equipment leases generally require us to pay all maintenance and

insurance costs. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Variable rent expense was not material.

Our corporate headquarters facility located in The Woodlands, Texas, was sold on December 31, 2012, pursuant to a sale and leaseback transaction. As a condition to the completion of the purchase and sale of the facility, the parties entered into a lease agreement for the facility having an initial lease term of 15 years, which is classified as an operating lease. Under the terms of the lease agreement, we have the ability to extend the lease for five successive five-year periods at base rental rates to be determined at the time of each extension.

Components of lease expense, included in either cost of revenues or general and administrative expense based on the use of the underlying asset, are as follows (inclusive of lease expense for leases not included on our consolidated balance sheet based on our accounting policy election to exclude leases with a term of 12 months or less):


	Three Months Ended March 31,
	2021		2020
	(In Thousands)
Operating lease expense	$	3,241	$	3,704
Short-term lease expense	6,457		9,010
Total lease expense	$	9,698	$	12,714

Supplemental cash flow information:


	Three Months Ended March 31,
	2021		2020
	(In Thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases	$	3,296	$	3,745

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	1,017	$	4,218

Supplemental balance sheet information:


	March 31, 2021		December 31, 2020
	(In Thousands)
Operating leases:
Operating lease right-of-use assets	$	41,293	$	43,448

Accrued liabilities and other	$	8,507	$	8,795
Operating lease liabilities	35,608		37,569
Total operating lease liabilities	$	44,115	$	46,364

Additional operating lease information:


	March 31, 2021		December 31, 2020
Weighted average remaining lease term:
Operating leases	6.6 years		6.8 years


Weighted average discount rate:
Operating leases	9.64	%	9.62	%

Future minimum lease payments by year and in the aggregate, under non-cancellable operating leases with terms in excess of one year consist of the following at March 31, 2021:


		Operating Leases
	(In Thousands)

Remainder of 2021		$	9,393
2022		10,827
2023		8,784
2024		7,299
2025		5,419
Thereafter		18,474
Total lease payments		60,196
Less imputed interest		(16,081)
Total lease liabilities		$	44,115

At March 31, 2021, future minimum rental receipts under a non-cancellable sublease for office space in one of our locations totaled $5.2 million. For the three months ended March 31, 2021, we recognized sublease income of $0.3 million.