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Leases | 6 Months Ended
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Jun. 30, 2019
Leases [Abstract] |
Leases | Leases We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use assets, Operating lease liabilities – short-term, and Operating lease liabilities – long-term in our Condensed Consolidated Balance Sheet. Finance leases are included in Property, plant and equipment – net, Accounts payable, and Other liabilities in our Condensed Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease and, when it is reasonably certain that such an option will be exercised, it is included in the determination of the corresponding assets and liabilities. Short-term leases are not recognized on our unaudited Condensed Consolidated Balance Sheets. Lease expense for all lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Additionally, for certain equipment leases, we apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities. The Company has entered into agreements to lease transportation equipment, storage facilities, office space, dock access and other equipment. The leases have initial terms of up to 20 years with some containing renewal options subject to customary conditions. The components of lease expense were as follows:
| Three Months Ended June 30, 2019 |  | Six Months Ended June 30, 2019
Finance lease cost: |  |  |
Amortization of right-of-use asset | $ | 157 |  | $ | 305
Interest on lease liabilities | 17 |  | 35
Total finance lease cost | 174 |  | 340
Operating lease cost | 7,931 |  | 15,501
Short-term lease cost | 4,116 |  | 8,397
Total lease cost | $ | 12,221 |  | $ | 24,238
Supplemental cash flow information related to leases was as follows:
| Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities: |
Operating cash flows from operating leases | $ | 15,295
Operating cash flows from finance leases | 30
Financing cash flows from finance leases | 2,377
Non-cash information: |
Right-of-use assets obtained in exchange for lease obligations: |
Operating leases | 9,419
Finance leases | 593
Supplemental balance sheet information related to leases was as follows:
| June 30, 2019
Operating Leases |
Operating lease right-of-use assets | $ | 115,284
Operating lease liabilities – short term | 26,022
Operating lease liabilities – long term | 89,503
Total operating lease liabilities | $ | 115,525
Finance Leases |
Property, plant and equipment – gross | $ | 2,354
Accumulated depreciation | (1,034)
Property, plant and equipment – net | $ | 1,320
Accounts payable | 591
Other liabilities | 739
Total finance lease liabilities | $ | 1,330
Weighted Average Remaining Lease Term |
Operating leases | 10.64 years
Finance leases | 2.38 years
Weighted Average Discount Rate |
Operating leases | 6.14 | %
Finance leases | 5.20 | %
The cumulative effect of the changes made to the Condensed Consolidated Balance Sheets for the adoption of the new leasing standard on January 1, 2019 was as follows:
| Balance Sheet accounts prior to new leasing standard adoption adjustments |  | Adjustments due to the adoption of the new leasing standard |  | Balance Sheet accounts after the new leasing standard adoption adjustments
ASSETS |  |  |  |  |
Property, plant and equipment – net | $ | 1,032 |  | $ | — |  | $ | 1,032
Operating lease right-of-use assets | — |  | 117,921 |  | 117,921
Total assets | 1,034,626 |  | $ | 117,921 |  | 1,152,547
LIABILITIES AND EQUITY |  |  |  |  |
Current Liabilities: |  |  |  |  |
Accounts payable | $ | 318 |  | $ | — |  | $ | 318
Operating lease liabilities – short term | — |  | 24,794 |  | 24,794
Total current liabilities | 284,724 |  | 24,794 |  | 309,518
Operating lease liabilities – long term | — |  | 93,127 |  | 93,127
Other liabilities | 762 |  | — |  | 762
Total liabilities | 614,288 |  | 117,921 |  | 732,209
Total equity | 420,338 |  | — |  | 420,338
Total liabilities and equity | 1,034,626 |  | $ | 117,921 |  | 1,152,547
Maturities of lease liabilities were as follows:
Year Ending December 31, | Operating Leases |  | Finance Leases
2019 (remainder) | $ | 16,402 |  | $ | 332
2020 | 31,412 |  | 610
2021 | 19,736 |  | 374
2022 | 14,973 |  | 99
2023 | 12,350 |  | —
Thereafter | 70,291 |  | —
Total lease payments | 165,164 |  | 1,415
Less imputed interest | (49,639) |  | (85)
Total | $ | 115,525 |  | $ | 1,330
As previously disclosed in our 2018 Form 10-K and under the previous lease accounting standard, future minimum lease payments for leases having initial or remaining non-cancellable lease terms in excess of one year would have been as follows:
Year Ending December 31, | Operating Leases |  | Capital Leases
2019 | $ | 36,110 |  | $ | 239
2020 | 29,318 |  | 212
2021 | 16,111 |  | 131
2022 | 11,571 |  | 89
2023 | 9,104 |  | —
Thereafter | 26,627 |  | —
Total lease payments | $ | 128,841 |  | $ | 671
Leases | Leases We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use assets, Operating lease liabilities – short-term, and Operating lease liabilities – long-term in our Condensed Consolidated Balance Sheet. Finance leases are included in Property, plant and equipment – net, Accounts payable, and Other liabilities in our Condensed Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease and, when it is reasonably certain that such an option will be exercised, it is included in the determination of the corresponding assets and liabilities. Short-term leases are not recognized on our unaudited Condensed Consolidated Balance Sheets. Lease expense for all lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Additionally, for certain equipment leases, we apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities. The Company has entered into agreements to lease transportation equipment, storage facilities, office space, dock access and other equipment. The leases have initial terms of up to 20 years with some containing renewal options subject to customary conditions. The components of lease expense were as follows:
| Three Months Ended June 30, 2019 |  | Six Months Ended June 30, 2019
Finance lease cost: |  |  |
Amortization of right-of-use asset | $ | 157 |  | $ | 305
Interest on lease liabilities | 17 |  | 35
Total finance lease cost | 174 |  | 340
Operating lease cost | 7,931 |  | 15,501
Short-term lease cost | 4,116 |  | 8,397
Total lease cost | $ | 12,221 |  | $ | 24,238
Supplemental cash flow information related to leases was as follows:
| Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities: |
Operating cash flows from operating leases | $ | 15,295
Operating cash flows from finance leases | 30
Financing cash flows from finance leases | 2,377
Non-cash information: |
Right-of-use assets obtained in exchange for lease obligations: |
Operating leases | 9,419
Finance leases | 593
Supplemental balance sheet information related to leases was as follows:
| June 30, 2019
Operating Leases |
Operating lease right-of-use assets | $ | 115,284
Operating lease liabilities – short term | 26,022
Operating lease liabilities – long term | 89,503
Total operating lease liabilities | $ | 115,525
Finance Leases |
Property, plant and equipment – gross | $ | 2,354
Accumulated depreciation | (1,034)
Property, plant and equipment – net | $ | 1,320
Accounts payable | 591
Other liabilities | 739
Total finance lease liabilities | $ | 1,330
Weighted Average Remaining Lease Term |
Operating leases | 10.64 years
Finance leases | 2.38 years
Weighted Average Discount Rate |
Operating leases | 6.14 | %
Finance leases | 5.20 | %
The cumulative effect of the changes made to the Condensed Consolidated Balance Sheets for the adoption of the new leasing standard on January 1, 2019 was as follows:
| Balance Sheet accounts prior to new leasing standard adoption adjustments |  | Adjustments due to the adoption of the new leasing standard |  | Balance Sheet accounts after the new leasing standard adoption adjustments
ASSETS |  |  |  |  |
Property, plant and equipment – net | $ | 1,032 |  | $ | — |  | $ | 1,032
Operating lease right-of-use assets | — |  | 117,921 |  | 117,921
Total assets | 1,034,626 |  | $ | 117,921 |  | 1,152,547
LIABILITIES AND EQUITY |  |  |  |  |
Current Liabilities: |  |  |  |  |
Accounts payable | $ | 318 |  | $ | — |  | $ | 318
Operating lease liabilities – short term | — |  | 24,794 |  | 24,794
Total current liabilities | 284,724 |  | 24,794 |  | 309,518
Operating lease liabilities – long term | — |  | 93,127 |  | 93,127
Other liabilities | 762 |  | — |  | 762
Total liabilities | 614,288 |  | 117,921 |  | 732,209
Total equity | 420,338 |  | — |  | 420,338
Total liabilities and equity | 1,034,626 |  | $ | 117,921 |  | 1,152,547
Maturities of lease liabilities were as follows:
Year Ending December 31, | Operating Leases |  | Finance Leases
2019 (remainder) | $ | 16,402 |  | $ | 332
2020 | 31,412 |  | 610
2021 | 19,736 |  | 374
2022 | 14,973 |  | 99
2023 | 12,350 |  | —
Thereafter | 70,291 |  | —
Total lease payments | 165,164 |  | 1,415
Less imputed interest | (49,639) |  | (85)
Total | $ | 115,525 |  | $ | 1,330
As previously disclosed in our 2018 Form 10-K and under the previous lease accounting standard, future minimum lease payments for leases having initial or remaining non-cancellable lease terms in excess of one year would have been as follows:
Year Ending December 31, | Operating Leases |  | Capital Leases
2019 | $ | 36,110 |  | $ | 239
2020 | 29,318 |  | 212
2021 | 16,111 |  | 131
2022 | 11,571 |  | 89
2023 | 9,104 |  | —
Thereafter | 26,627 |  | —
Total lease payments | $ | 128,841 |  | $ | 671

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