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Leases | 3 Months Ended
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Mar. 31, 2019
Leases [Abstract] |
Leases | Leases The Company leases certain grain handling and storage facilities, ethanol storage terminals. warehouse space, railcars, locomotives, barges, office space, machinery and equipment, vehicles and information technology equipment under operating leases. Lease expense for these leases is recognized within the Consolidated Statements of Operations on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. The following table summarizes the amounts recognized in our Condensed Consolidated Balance Sheet related to leases:
(in thousands) |  | Condensed Consolidated Balance Sheet Classification |  | March 31, 2019
Assets |  |  |  |  |
Operating lease assets |  | Right of use asset, net |  | $ | 85,766 |
Finance lease assets |  | Property, plant and equipment, net |  | 25,379 |
Finance lease assets |  | Rail Group assets leased to others, net |  | 3,796 |
Total leased assets |  |  |  | $ | 114,941 |
Liabilities |  |  |  |  |
Current operating leases |  | Accrued expenses and other current liabilities |  | $ | 28,017 |
Non-current operating leases |  | Long-term lease liabilities |  | 57,451 |
Total operating lease liabilities |  |  |  | 85,468 |
Current finance leases |  | Current maturities of long-term debt |  | 6,007 |
Non-current finance leases |  | Long-term debt |  | 23,058 |
Total finance lease liabilities |  |  |  | 29,065 |
Total lease liabilities |  |  |  | $ | 114,533 |
The components of lease cost recognized within our Condensed Consolidated Statement of Operations were as follows:
(in thousands) |  | Condensed Consolidated Statement of Operations Classification |  | March 31, 2019
Lease cost: |  |  |  |
Operating lease cost |  | Cost of sales and merchandising revenues |  | $ | 7,239 |
Operating lease cost |  | Operating, administrative and general expenses |  | 3,954 |
Finance lease cost |  |  |  |  |
Amortization of right-of-use assets |  | Operating, administrative and general expenses |  | 510 |
Interest expense on lease liabilities |  | Interest expense |  | 123 |
Other lease cost (1) |  | Operating, administrative and general expenses |  | 199 |
Other lease cost (1) |  | Interest expense |  | 24 |
Total lease cost |  |  |  | $ | 12,049 |
(1) | Other lease cost includes short-term lease costs and variable lease costs
We often have options to renew lease terms for buildings and other assets. The exercise of lease renewal options is generally at our sole discretion. In addition, certain lease agreements may be terminated prior to their original expiration date at our discretion. We evaluate each renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The table below summarizes the weighted average remaining lease terms as of March 31, 2019.
Weighted Average Remaining Lease Term |
Operating leases | 4.88 years
Finance leases | 11.0 years
The discount rate implicit within our leases is generally not determinable and therefore the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for each lease is determined based on its term and the currency in which lease payments are made, adjusted for the impacts of collateral. The table below summarizes the weighted average discount rate used to measure our lease liabilities as of March 31, 2019.
Weighted Average Discount Rate |  |
Operating leases | 4.22 | %
Finance leases | 3.18 | %
Supplemental Cash Flow Information Related to Leases
(in thousands) |  | March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases |  | $ | 15,418 |
Operating cash flows from finance leases |  | $ | 123 |
Financing cash flows from finance leases |  | $ | 387 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |
Operating leases |  | $ | 1,995 |
Finance leases |  | $ | 3,796 |
Maturity Analysis of Lease Liabilities
| As of March 31, 2019
(in thousands) | Operating Leases |  | Finance Leases |  | Total
2019 (excluding the three months ended March 31, 2019) | $ | 31,076 |  |  | $ | 6,293 |  |  | $ | 37,369 |
2020 | 21,688 |  |  | 2,333 |  |  | 24,021 |
2021 | 16,289 |  |  | 2,334 |  |  | 18,623 |
2022 | 9,927 |  |  | 2,341 |  |  | 12,268 |
2023 | 5,793 |  |  | 2,342 |  |  | 8,135 |
Thereafter | 8,688 |  |  | 18,331 |  |  | 27,019 |
Total lease payments | $ | 93,461 |  |  | $ | 33,974 |  |  | $ | 127,435 |
Less interest | 7,993 |  |  | 4,909 |  |  | 12,902 |
Total | $ | 85,468 |  |  | $ | 29,065 |  |  | $ | 114,533 |
Leases | Leases The Company leases certain grain handling and storage facilities, ethanol storage terminals. warehouse space, railcars, locomotives, barges, office space, machinery and equipment, vehicles and information technology equipment under operating leases. Lease expense for these leases is recognized within the Consolidated Statements of Operations on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. The following table summarizes the amounts recognized in our Condensed Consolidated Balance Sheet related to leases:
(in thousands) |  | Condensed Consolidated Balance Sheet Classification |  | March 31, 2019
Assets |  |  |  |  |
Operating lease assets |  | Right of use asset, net |  | $ | 85,766 |
Finance lease assets |  | Property, plant and equipment, net |  | 25,379 |
Finance lease assets |  | Rail Group assets leased to others, net |  | 3,796 |
Total leased assets |  |  |  | $ | 114,941 |
Liabilities |  |  |  |  |
Current operating leases |  | Accrued expenses and other current liabilities |  | $ | 28,017 |
Non-current operating leases |  | Long-term lease liabilities |  | 57,451 |
Total operating lease liabilities |  |  |  | 85,468 |
Current finance leases |  | Current maturities of long-term debt |  | 6,007 |
Non-current finance leases |  | Long-term debt |  | 23,058 |
Total finance lease liabilities |  |  |  | 29,065 |
Total lease liabilities |  |  |  | $ | 114,533 |
The components of lease cost recognized within our Condensed Consolidated Statement of Operations were as follows:
(in thousands) |  | Condensed Consolidated Statement of Operations Classification |  | March 31, 2019
Lease cost: |  |  |  |
Operating lease cost |  | Cost of sales and merchandising revenues |  | $ | 7,239 |
Operating lease cost |  | Operating, administrative and general expenses |  | 3,954 |
Finance lease cost |  |  |  |  |
Amortization of right-of-use assets |  | Operating, administrative and general expenses |  | 510 |
Interest expense on lease liabilities |  | Interest expense |  | 123 |
Other lease cost (1) |  | Operating, administrative and general expenses |  | 199 |
Other lease cost (1) |  | Interest expense |  | 24 |
Total lease cost |  |  |  | $ | 12,049 |
(1) | Other lease cost includes short-term lease costs and variable lease costs
We often have options to renew lease terms for buildings and other assets. The exercise of lease renewal options is generally at our sole discretion. In addition, certain lease agreements may be terminated prior to their original expiration date at our discretion. We evaluate each renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The table below summarizes the weighted average remaining lease terms as of March 31, 2019.
Weighted Average Remaining Lease Term |
Operating leases | 4.88 years
Finance leases | 11.0 years
The discount rate implicit within our leases is generally not determinable and therefore the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for each lease is determined based on its term and the currency in which lease payments are made, adjusted for the impacts of collateral. The table below summarizes the weighted average discount rate used to measure our lease liabilities as of March 31, 2019.
Weighted Average Discount Rate |  |
Operating leases | 4.22 | %
Finance leases | 3.18 | %
Supplemental Cash Flow Information Related to Leases
(in thousands) |  | March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases |  | $ | 15,418 |
Operating cash flows from finance leases |  | $ | 123 |
Financing cash flows from finance leases |  | $ | 387 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |
Operating leases |  | $ | 1,995 |
Finance leases |  | $ | 3,796 |
Maturity Analysis of Lease Liabilities
| As of March 31, 2019
(in thousands) | Operating Leases |  | Finance Leases |  | Total
2019 (excluding the three months ended March 31, 2019) | $ | 31,076 |  |  | $ | 6,293 |  |  | $ | 37,369 |
2020 | 21,688 |  |  | 2,333 |  |  | 24,021 |
2021 | 16,289 |  |  | 2,334 |  |  | 18,623 |
2022 | 9,927 |  |  | 2,341 |  |  | 12,268 |
2023 | 5,793 |  |  | 2,342 |  |  | 8,135 |
Thereafter | 8,688 |  |  | 18,331 |  |  | 27,019 |
Total lease payments | $ | 93,461 |  |  | $ | 33,974 |  |  | $ | 127,435 |
Less interest | 7,993 |  |  | 4,909 |  |  | 12,902 |
Total | $ | 85,468 |  |  | $ | 29,065 |  |  | $ | 114,533 |

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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/presentationRef -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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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