LEASES

9 Months Ended

Dec. 31, 2019

(J) LEASES

We lease certain real estate, buildings, and equipment, including rail cars. Certain of these leases contain escalations of rent over the term of the lease, as well as options for us to extend the term of the lease at the end of the original term. These extensions range from periods of one year to twenty years. Our lease agreements do not contain material residual value guarantees or material restrictive covenants. In calculating the present value of future minimum lease payments, we use the rate implicit in the lease if it can be determined. Otherwise, we use our incremental borrowing rate in effect at the commencement of the lease to determine the present value of the future minimum lease payments. Additionally, we lease certain equipment under short-term leases with initial terms of less than twelve months. These short-term equipment leases are not recorded on the balance sheet.

Lease expense for our operating and short-term leases is as follows:


	For the Three Months Ended December 31, 2019		For the Nine Months Ended December 31, 2019
	(dollars in thousands)
Operating Lease Cost	$	3,730	$	11,639
Short-term Lease Cost		228		1,310
Total Lease Cost	$	3,958	$	12,949

The Right-of-Use Assets and Lease Liabilities are reflected on our Balance Sheet as follows:


	For the Nine Months Ended December 31, 2019
	(dollars in thousands)
Operating Leases:
Operating Lease Right-of-Use Assets	$	29,346

Current Operating Lease Liabilities	$	10,601
Noncurrent Operating Lease Liabilities		51,939
Total Operating Lease Liabilities	$	62,540

During the quarter ended December 31, 2019, we recognized a $29.1 million impairment related to Right-of-Use assets used by our Oil and Gas Proppants business. See Footnote (C) for additional information about the impairment loss.

Future payments for operating leases are as follows:


	Amount
Fiscal Year	(dollars in thousands)
2020 (remaining three months)	$	3,318
2021		11,931
2022		10,618
2023		10,131
2024		8,585
Thereafter		30,945
Total Lease Payments	$	75,528
Less: Imputed Interest		(12,988	)
Present Value of Lease Liabilities	$	62,540

Weighted Average Remaining Lease Term (in years)		9.2
Weighted Average Discount Rate		3.75	%

As disclosed in our March 31, 2019 Form 10-K, future minimum lease payments were as follows:


	Amount
Fiscal Year	(dollars in thousands)
2020	$	14,613
2021		11,487
2022		9,979
2023		9,784
2024		8,347
Thereafter		24,793
Total Lease Payments	$	79,003