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Leases

12 Months Ended

Dec. 31, 2019

The Company recognizes a right of use asset and a corresponding lease liability equal to the present value of the remaining minimum lease paymentsLeases

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 the Company's Consolidated Balance Sheet related to leases:



(in thousands)	Consolidated Balance Sheet Classification	December 31, 2019
Assets
Operating lease assets	Right of use assets, net	$	76,401
Finance lease assets	Property, plant and equipment, net	23,723
Finance lease assets	Rail Group assets leased to others, net	17,465
Total leased assets		117,589

Liabilities
Current operating leases	Accrued expenses and other current liabilities	25,700
Non-current operating leases	Long-term lease liabilities	51,091
Total operating lease liabilities		76,791

Current finance leases	Current maturities of long-term debt	17,636
Non-current finance leases	Long-term debt	21,501
Total finance lease liabilities		39,137
Total lease liabilities		$	115,928

The components of lease cost recognized within the Company's Consolidated Statement of Operations were as follows:



(in thousands)	Statement of Operations Classification	For the Year Ended December 31, 2019
Lease cost:
Operating lease cost	Cost of sales and merchandising revenues	$	26,230
Operating lease cost	Operating, administrative and general expenses	13,711
Finance lease cost
Amortization of right-of-use assets	Cost of sales and merchandising revenues	357
Amortization of right-of-use assets	Operating, administrative and general expenses	1,119
Interest expense on lease liabilities	Interest expense	1,023
Other lease cost (a)	Cost of sales and merchandising revenues	822
Other lease cost (a)	Operating, administrative and general expenses	322
Total lease cost		$	43,584

(a) Other lease cost includes short-term lease costs and variable lease costs.

The Company often has the option to renew lease terms for buildings and other assets. The exercise of a lease renewal option is generally at the sole discretion of the Company. In addition, certain lease agreements may be terminated prior to their original expiration date at the discretion of the Company. Each renewal and termination option is evaluated at the lease commencement date to determine if the Company is reasonably certain to exercise the option on the basis of economic factors. The following table summarizes the weighted average remaining lease terms as of December 31, 2019:



Weighted Average Remaining Lease Term
Operating leases	4.1 years
Finance leases	6.5 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 following table summarizes the weighted average discount rate used to measure the Company's lease liabilities as of December 31, 2019:



Weighted Average Discount Rate
Operating leases	3.88	%
Finance leases	3.72	%

Supplemental Cash Flow Information Related to Leases



(in thousands)	For the Year Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	25,304
Operating cash flows from finance leases	1,023
Financing cash flows from finance leases	1,973
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	29,427
Finance leases	16,998

Maturity Analysis of Leases Liabilities



	December 31, 2019
(in thousands)	Operating Leases		Finance Leases		Total
2020	$	28,145	$	18,185	$	46,330
2021	19,230		2,334		21,564
2022	13,574		2,341		15,915
2023	9,887		2,342		12,229
2024	5,567		2,176		7,743
Thereafter	6,956		16,154		23,110
Total lease payments	83,359		43,532		126,891
Less: interest	6,568		4,395		10,963
Total	$	76,791	$	39,137	$	115,928

Prior year lease disclosures

The following pertains to previously disclosed information from Note 15, Commitments and contingencies, contained in the Company's 2018 Annual Report on Form 10-K, which incorporates information about leases now in scope of ASC 842, Leases, disclosed above.

Future minimum lease payments by year and in the aggregate under non-cancelable operating leases with initial term of one year or more at December 31, 2018 are as follows:



(in thousands)	Minimum Lease Payments
2019	$	16,978
2020	11,906
2021	9,959
2022	6,438
2023	3,763
Thereafter	8,348
Total	$	57,392

Leases