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LEASES | 9 Months Ended
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Sep. 30, 2020
Leases [Abstract] |
LEASES | LEASESWe lease vehicles, equipment, property and other non-core equipment in the ordinary course of our business. Leases are classified as either operating leases or finance leases, as appropriate. Our leases have varying terms and may include renewal or purchase options, escalation clauses, restrictions, lease concessions, capital project funding, penalties or other obligations that we considered historically in determining minimum rental payments. We recognize lease expense for operating leases on a straight-line basis over the lease term. We recognize depreciation expense for finance leases over either the useful life of the asset or the lease term based on the terms of the lease agreement. We are also party to three landfill operation and management agreements. These agreements are long-term landfill operating contracts with government bodies whereby we receive tipping revenue, pay normal operating expenses and assume future final capping, closure and post-closure obligations. The government bodies retain ownership of each landfill. There are no bargain purchase options and title to each of the properties does not pass to us at the end of the respective lease terms. We allocate the consideration paid to the landfill airspace rights and underlying land lease based on the relative fair values. In addition to up-front or one-time payments, the landfill operating agreements may require us to make future minimum rental payments, including success or expansion fees, other direct costs and final capping, closure and post-closure costs. The value of all future minimum rental payments is amortized and charged to cost of operations over the life of the contract. We amortize the consideration allocated to airspace rights as airspace is utilized on a units-of-consumption basis and such amortization is charged to cost of operations as airspace is consumed (e.g., as tons are placed into the landfill). The underlying value of any land lease is amortized to cost of operations on a straight-line basis over the estimated life of the respective operating agreement. A schedule of lease costs and other lease information follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
Lease cost: |  |  |  |  |  |  |
Amortization of right-of-use assets | $ | 1,025 |  |  | $ | 593 |  |  | $ | 2,616 |  |  | $ | 1,505 |
Interest expense | 327 |  |  | 213 |  |  | 863 |  |  | 555 |
Fixed lease cost - vehicles, equipment and property | 2,048 |  |  | 2,351 |  |  | 6,636 |  |  | 7,271 |
Fixed lease cost - landfill operating leases | 2,243 |  |  | 1,957 |  |  | 5,711 |  |  | 5,580 |
Fixed lease cost | 4,291 |  |  | 4,308 |  |  | 12,347 |  |  | 12,851 |
Short-term lease cost | 856 |  |  | 853 |  |  | 2,514 |  |  | 2,261 |
Variable lease cost | 141 |  |  | 329 |  |  | 402 |  |  | 712 |
Total lease cost | $ | 6,640 |  |  | $ | 6,296 |  |  | $ | 18,742 |  |  | $ | 17,884 |
Other information: |  |  |  |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows for finance leases | $ | 1,304 |  |  | $ | 666 |  |  | $ | 3,246 |  |  | $ | 1,870 |
Operating cash flows for operating leases | $ | 3,874 |  |  | $ | 2,963 |  |  | $ | 9,588 |  |  | $ | 9,837 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ | 5,078 |  |  | $ | — |  |  | $ | 16,871 |  |  | $ | 6,857 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 147 |  |  | $ | 831 |  |  | $ | 3,289 |  |  | $ | 1,419 |
|  |  |  |  |  |  | September 30, 2020
Weighted-average remaining lease term - finance leases (years) | 5.9
Weighted-average remaining lease term - operating leases (years) | 11.7
Weighted-average discount rate - finance leases | 4.3 | %
Weighted-average discount rate - operating leases | 5.1 | %
Estimated minimum future lease obligations are as follows:
| Operating Leases |  | Finance Leases
Fiscal year ending December 31, 2020 | $ | 3,301 |  |  | $ | 1,605 |
Fiscal year ending December 31, 2021 | 12,038 |  |  | 6,505 |
Fiscal year ending December 31, 2022 | 9,520 |  |  | 5,884 |
Fiscal year ending December 31, 2023 | 7,317 |  |  | 5,686 |
Fiscal year ending December 31, 2024 | 6,638 |  |  | 5,586 |
Thereafter | 63,964 |  |  | 11,947 |
Total lease payments | 102,778 |  |  | 37,213 |
Less: interest expense | (27,335) |  |  | (5,168) |
Lease liability balance | $ | 75,443 |  |  | $ | 32,045 |
LEASES | LEASESWe lease vehicles, equipment, property and other non-core equipment in the ordinary course of our business. Leases are classified as either operating leases or finance leases, as appropriate. Our leases have varying terms and may include renewal or purchase options, escalation clauses, restrictions, lease concessions, capital project funding, penalties or other obligations that we considered historically in determining minimum rental payments. We recognize lease expense for operating leases on a straight-line basis over the lease term. We recognize depreciation expense for finance leases over either the useful life of the asset or the lease term based on the terms of the lease agreement. We are also party to three landfill operation and management agreements. These agreements are long-term landfill operating contracts with government bodies whereby we receive tipping revenue, pay normal operating expenses and assume future final capping, closure and post-closure obligations. The government bodies retain ownership of each landfill. There are no bargain purchase options and title to each of the properties does not pass to us at the end of the respective lease terms. We allocate the consideration paid to the landfill airspace rights and underlying land lease based on the relative fair values. In addition to up-front or one-time payments, the landfill operating agreements may require us to make future minimum rental payments, including success or expansion fees, other direct costs and final capping, closure and post-closure costs. The value of all future minimum rental payments is amortized and charged to cost of operations over the life of the contract. We amortize the consideration allocated to airspace rights as airspace is utilized on a units-of-consumption basis and such amortization is charged to cost of operations as airspace is consumed (e.g., as tons are placed into the landfill). The underlying value of any land lease is amortized to cost of operations on a straight-line basis over the estimated life of the respective operating agreement. A schedule of lease costs and other lease information follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
Lease cost: |  |  |  |  |  |  |
Amortization of right-of-use assets | $ | 1,025 |  |  | $ | 593 |  |  | $ | 2,616 |  |  | $ | 1,505 |
Interest expense | 327 |  |  | 213 |  |  | 863 |  |  | 555 |
Fixed lease cost - vehicles, equipment and property | 2,048 |  |  | 2,351 |  |  | 6,636 |  |  | 7,271 |
Fixed lease cost - landfill operating leases | 2,243 |  |  | 1,957 |  |  | 5,711 |  |  | 5,580 |
Fixed lease cost | 4,291 |  |  | 4,308 |  |  | 12,347 |  |  | 12,851 |
Short-term lease cost | 856 |  |  | 853 |  |  | 2,514 |  |  | 2,261 |
Variable lease cost | 141 |  |  | 329 |  |  | 402 |  |  | 712 |
Total lease cost | $ | 6,640 |  |  | $ | 6,296 |  |  | $ | 18,742 |  |  | $ | 17,884 |
Other information: |  |  |  |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows for finance leases | $ | 1,304 |  |  | $ | 666 |  |  | $ | 3,246 |  |  | $ | 1,870 |
Operating cash flows for operating leases | $ | 3,874 |  |  | $ | 2,963 |  |  | $ | 9,588 |  |  | $ | 9,837 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ | 5,078 |  |  | $ | — |  |  | $ | 16,871 |  |  | $ | 6,857 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 147 |  |  | $ | 831 |  |  | $ | 3,289 |  |  | $ | 1,419 |
|  |  |  |  |  |  | September 30, 2020
Weighted-average remaining lease term - finance leases (years) | 5.9
Weighted-average remaining lease term - operating leases (years) | 11.7
Weighted-average discount rate - finance leases | 4.3 | %
Weighted-average discount rate - operating leases | 5.1 | %
Estimated minimum future lease obligations are as follows:
| Operating Leases |  | Finance Leases
Fiscal year ending December 31, 2020 | $ | 3,301 |  |  | $ | 1,605 |
Fiscal year ending December 31, 2021 | 12,038 |  |  | 6,505 |
Fiscal year ending December 31, 2022 | 9,520 |  |  | 5,884 |
Fiscal year ending December 31, 2023 | 7,317 |  |  | 5,686 |
Fiscal year ending December 31, 2024 | 6,638 |  |  | 5,586 |
Thereafter | 63,964 |  |  | 11,947 |
Total lease payments | 102,778 |  |  | 37,213 |
Less: interest expense | (27,335) |  |  | (5,168) |
Lease liability balance | $ | 75,443 |  |  | $ | 32,045 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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