Leases

3 Months Ended

Mar. 31, 2020

(7)

Leases

The Company currently leases various facilities and equipment under cancelable and noncancelable operating leases. The accounting for the Company’s leases may require judgments, which include determining whether a contract contains a lease, allocated between lease and non-lease components, and determining the incremental borrowing rates. Leases with an initial noncancelable term of 12 months or less are not recorded on the balance sheet and related lease expense is recognized on a straight-line basis over the lease term. The Company has also elected to combine lease and non-lease components on all classes of leased assets, except for leased towing vessels for which the Company estimates approximately 75% of the costs relate to service costs and other non-lease components. Variable lease costs relate primarily to real estate executory costs (i.e. taxes, insurance and maintenance).

Future minimum lease payments under operating leases that have initial noncancelable lease terms in excess of one year were as follows (in thousands):

	March 31,			December 31,
	2020			2019
2020	$	25,421		$	33,374
2021		27,479			25,911
2022		24,551			23,098
2023		20,492			19,162
2024		16,591			15,330
Thereafter		94,868			92,991
Total lease payments		209,402			209,866
Less: imputed interest		(44,615	)		(43,085	)
Operating lease liabilities	$	164,787		$	166,781

The following table sets forth lease costs (in thousands):

	Three months ended March 31,
	2020			2019
Operating lease cost	$	9,041		$	10,078
Variable lease cost		152			516
Short-term lease cost		8,277			7,892
Sublease income		(244	)		(240	)
Total lease cost	$	17,226		$	18,246

The following table summarizes other supplemental information about the Company’s operating leases:

	March 31,			December 31,
	2020			2019
Weighted average discount rate		4.0	%		4.0	%
Weighted average remaining lease term	11 years			11 years