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Leases | 9 Months Ended
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Sep. 30, 2019
Leases [Abstract] |
Leases |
11. | Leases
The Company has leases, primarily for equipment, railcars, fleet vehicles, office space, land and information technology equipment and software. The Company’s leases have remaining lease terms of one year to 54 years, some of which may include options to extend the leases for up to 30 years, and some of which may include options to terminate the leases within one year. Certain of the Company’s lease agreements include payments based upon variable rates, including but not limited to hours used, tonnage processed and factors related to indices. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease cost are as follows:
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, 2019 |  |  | September 30, 2019 |
|  | (Dollars in Thousands) |
Operating lease cost |  | $ | 19,627 |  |  | $ | 59,024 |
Finance lease cost: |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  |  | 755 |  |  |  | 2,325 |
Interest on lease liabilities |  |  | 126 |  |  |  | 412 |
Variable lease cost |  |  | 4,972 |  |  |  | 15,738 |
Short-term lease cost |  |  | 8,897 |  |  |  | 25,157 |
Total lease cost |  | $ | 34,377 |  |  | $ | 102,656 |
The balance sheet classifications of operating and finance leases are as follows:
|  | September 30, 2019 |
|  | (Dollars in Thousands) |
Operating Leases: |  |  |  |
Operating lease right-of-use assets |  | $ | 484,853 |
Current operating lease liabilities |  | $ | 51,751 |
Noncurrent operating lease liabilities |  |  | 436,698 |
Total operating lease liabilities |  | $ | 488,449 |
Finance Leases: |  |  |  |
Property, plant and equipment |  | $ | 10,800 |
Accumulated depreciation |  |  | (2,325 | )
Property, plant and equipment, net |  | $ | 8,475 |
Other current liabilities |  | $ | 3,058 |
Other noncurrent liabilities |  |  | 6,473 |
Total finance lease liabilities |  | $ | 9,531 |
The estimated incremental borrowing rate range used was 3.5% to 5.5%. Weighted-average remaining lease terms and discount rates are as follows:
|  | September 30, 2019 |
Weighted-average remaining lease term (years): |  |  |  |
Operating leases |  |  | 14.7 |
Finance leases |  |  | 8.7 |
Weighted-average discount rate: |  |  |  |
Operating leases |  |  | 4.3 | %
Finance leases |  |  | 5.2 | %
Future lease payments under leases as of September 30, 2019 are as follows:
|  | Operating |  |  | Finance |
|  | Leases |  |  | Leases |
|  | (Dollars in Thousands) |
2019 |  | $ | 18,253 |  |  | $ | 948 |
2020 |  |  | 68,838 |  |  |  | 3,196 |
2021 |  |  | 56,568 |  |  |  | 1,951 |
2022 |  |  | 51,600 |  |  |  | 1,094 |
2023 |  |  | 47,934 |  |  |  | 779 |
Thereafter |  |  | 434,190 |  |  |  | 4,177 |
Total lease payments |  |  | 677,383 |  |  |  | 12,145 |
Less: imputed interest |  |  | (188,934 | ) |  |  | (2,614 | )
Present value of lease payments |  |  | 488,449 |  |  |  | 9,531 |
Less: current lease obligations |  |  | (51,751 | ) |  |  | (3,058 | )
Total long-term lease obligations |  | $ | 436,698 |  |  | $ | 6,473 |
The following tables present supplemental cash flow and non-cash information related to leases:
|  |  |  | September 30, 2019 |
|  |  |  | (Dollars in Thousands) |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows used for operating leases |  |  |  | $ | 57,193 |
Operating cash flows used for finance leases |  |  |  | $ | 412 |
Financing cash flows used for finance leases |  |  |  | $ | 2,651 |
|  | Three Months Ended |  |  | Nine Months Ended (1) |
|  | September 30, 2019 |  |  | September 30, 2019 |
|  | (Dollars in Thousands) |
Right-of-use assets obtained in exchange for new operating lease liabilities |  | $ | 11,034 |  |  | $ | 36,369 |
Right-of-use assets obtained in exchange for new finance lease liabilities |  | $ | — |  |  | $ | 217 |
| (1) | Right-of-use assets obtained in exchange for new operating lease liabilities for the nine months ended September 30, 2019 exclude assets recorded on the balance sheet as part of the adoption of ASC 842 as disclosed in Note 1.
Leases entered into but not yet commenced for the quarter ended September 30, 2019 were immaterial. Lease disclosures for the full year December 31, 2018, as reported: Total lease expense for operating leases was $122.5 million for the year ended December 31, 2018. Total royalties, principally for leased properties, were $52.5 million, for the year ended December 31, 2018. The Company also has capital lease obligations for machinery and equipment. Future minimum lease and royalty commitments for all noncancelable agreements and capital lease obligations as of December 31, 2018 were as follows:
|  | Capital Leases |  |  | Operating Leases |  |  | Royalty Commitments |
|  | (Dollars in Thousands) |
2019 |  | $ | 3,718 |  |  | $ | 105,955 |  |  | $ | 14,614 |
2020 |  |  | 2,695 |  |  |  | 70,478 |  |  |  | 11,364 |
2021 |  |  | 1,735 |  |  |  | 60,382 |  |  |  | 10,335 |
2022 |  |  | 1,004 |  |  |  | 57,531 |  |  |  | 9,545 |
2023 |  |  | 713 |  |  |  | 56,511 |  |  |  | 8,109 |
Thereafter |  |  | 3,893 |  |  |  | 318,147 |  |  |  | 65,981 |
Total |  |  | 13,758 |  |  | $ | 669,004 |  |  | $ | 119,948 |
Less: imputed interest |  |  | (2,879 | ) |  |  |  |  |  |  |  |
Present value of minimum lease payments |  |  | 10,879 |  |  |  |  |  |  |  |  |
Less: current capital lease obligations |  |  | (3,249 | ) |  |  |  |  |  |  |  |
Long-term capital lease obligations |  | $ | 7,630 |  |  |  |  |  |  |  |  |

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- References No definition available. + Details
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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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