Note 16 - Leases

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Leases of Lessee Disclosure [Text Block]

16. Leases

We have leases for office and shop space, as well as for equipment primarily utilized in our construction projects. As of  December 31, 2019, our lease contracts were classified as operating leases and had terms ranging from month-to-month to 23 years. As of  December 31, 2019, ROU assets and long term lease liabilities were separately presented and short-term lease liabilities of $17.0 million were included in accrued expenses and other current liabilities on our consolidated balance sheets. As of  December 31, 2019, we had no lease contracts that had not yet commenced but created significant rights and obligations. Lease expense was $18.9 million for the year ended  December 31, 2019.

As of  December 31, 2019, our weighted-average remaining lease term was 5.8 years and the weighted-average discount rate was 3.97%.

As of  December 31, 2019, the lease liability is equal to the present value of the remaining lease payments, discounted using the incremental borrowing rate on our secured debt, using one maturity discount rate that is updated quarterly, as it is not materially different than the discount rates applied to each of the leases in the portfolio.

The following table summarizes our undiscounted lease liabilities outstanding as of  December 31, 2019 (in thousands):

2020	$	19,723
2021		18,479
2022		16,291
2023		11,113
2024		6,293
2025 through 2035		13,434
Total future minimum lease payments		85,333
Less: imputed interest		(9,628	)
Total	$	75,705

Royalties

Excluded from the table above are minimum royalty requirements under all contracts, primarily quarry property, in effect at December 31, 2019 which are as follows: $2.1 million in 2020; $1.5 million in 2021; $1.2 million in 2022; $0.9 million in 2023; $0.8 million in 2024; and $3.0 million thereafter.

Prior to the adoption of ASC Topic 842, our minimum rental commitments and minimum royalty requirements under all noncancellable operating leases were approximately $83.5 billion at December 31, 2018 and were payable as follows: $20.2 million in 2019, $17.8 million in 2020, $15.9 million in 2021, $13.3 million in 2022, $7.7 million in 2023 and $8.7 million thereafter.