On January 1, 2019, the company adopted the amended guidance in ASC 842, Leases, and all related amendments (“new lease standard”) and applied it to all leases using the optional transition method which requires the amended guidance to be applied at the date of adoption. The new lease standard had a material impact on the company’s consolidated balance sheets, increasing total assets and total liabilities for continuing operations by $60.2 million upon adoption. It did not have an impact on the consolidated statement of operations for the year ended December 31, 2019.

The company’s leases do not specify an implicit interest rate. Therefore, the incremental borrowing rate was used based on information available at commencement date to determine the present value of future payments.

The company leases certain facilities, parcels of land, and equipment, with remaining terms ranging from less than one year to 16.9 years. The land and facility leases include renewal options. The renewal options are included in the lease term only for those sites or locations in which they are reasonably certain to be renewed. Equipment renewals are not considered reasonably certain to be exercised as they typically renew with significantly different underlying terms.

The company may sublease certain of its railcars to third parties on a short-term basis. The subleases are classified as operating leases, with the associated sublease income being recognized on a straight-line basis over the lease term.


	Year Ended December 31,
	2020		2019
Lease expense
Operating lease expense	$	20,771	$	20,806
Variable lease expense ⁽¹⁾		1,681		824
Total lease expense	$	22,452	$	21,630

(1)Represents amounts incurred in excess of the minimum payments required for a certain building lease and for the handling and unloading of railcars for a certain land lease, offset by railcar lease abatements provided by the lessor when railcars are out of service during periods of maintenance or upgrade.

Supplemental cash flow information related to operating leases is as follows (in thousands):


	Year Ended December 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	20,864	$	21,459

Right-of-use assets obtained in exchange for lease obligations:
Operating leases		32,713		11,176

Right-of-use assets and lease obligations derecognized due to lease modifications:
Operating leases		5,176		1,726

Supplemental balance sheet information related to operating leases is as follows:

Aggregate minimum lease payments under the operating lease agreements for future fiscal years as of December 31, 2020 are as follows (in thousands):


Year Ending December 31,	Amount
2021	$	17,303
2022		15,289
2023		11,711
2024		9,902
2025		6,441
Thereafter		15,350
Total		75,996
Less: Present value discount		(11,545)
Lease liabilities	$	64,451

As described in Note 4 – Revenue, the majority of the partnership’s segment revenue is generated though their storage and throughput services and rail transportation services agreements with Green Plains Trade and are accounted for as lease revenue. Leasing revenues do not represent revenues recognized from contracts with customers under ASC 606, and are accounted for under ASC 842, Leases. Lease revenue associated with agreements with Green Plains Trade are eliminated upon consolidation. The remaining lease revenue is not material to the company.

As of December 31, 2020, the company had contracted future purchases of grain, corn oil, natural gas, ethanol and distillers grains, valued at approximately $302.8 million.

Weighted average remaining lease term

Weighted average discount rate