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Commitments and Contingencies (Tables)
9 Months Ended
Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Components of Lease Expense
The components of lease expense are as follows (in thousands):
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024202320242023
Lease expense
Operating lease expense$7,173$7,155$21,272$20,744
Variable lease expense (benefit) (1)
5512111,234(96)
Total lease expense$7,724$7,366$22,506$20,648
(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
Supplemental cash flow information related to operating leases is as follows (in thousands):
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024202320242023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$7,540 $7,075 $21,737 $19,914 
Right-of-use assets obtained in exchange for lease obligations
Operating leases7,753 4,330 17,491 27,786 
Right-of-use assets and lease obligations derecognized due to lease modifications:
Right-of-use assets (1)
2,208 3,428 2,208 3,428 
Lease obligations (1)
2,739 3,428 2,739 3,428 
(1)Amounts presented in 2024 are related to the Birmingham Transaction, while amounts in 2023 relate to the Atkinson Transaction. Derecognition of right-of-use assets and lease obligations for both dispositions is related to railcar operating leases.
Supplemental Balance Sheet Information Related to Operating Leases
Supplemental balance sheet information related to operating leases is as follows:
September 30,
2024
December 31,
2023
Weighted average remaining lease term4.1 years4.5 years
Weighted average discount rate5.32 %5.16 %
Aggregate Minimum Lease Payments
Aggregate minimum lease payments under the operating lease agreements for the remainder of 2024 and in future years are as follows (in thousands):
Year Ending December 31,Amount
2024$7,211 
202525,420 
202618,627 
202714,356 
20286,648 
Thereafter9,129 
Total81,391 
Less: Present value discount(8,543)
Lease liabilities$72,848