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Leases | 9 Months Ended
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Sep. 30, 2020
Leases [Abstract] |
Leases | Leases NACCO adopted ASU 2016-02, Leases (Topic 842), on January 1, 2019. The most significant effect to the Unaudited Condensed Consolidated Balance Sheets relates to the recognition of new right-of-use assets and lease liabilities for operating leases of real estate, mining and other equipment that expire at various dates through 2031. The majority of the Company's leases are operating leases. See the table below for further information on the balances included in the Unaudited Condensed Consolidated Balance Sheets. Several leases include renewal or fair value purchase options, which are not recognized on the Unaudited Condensed Consolidated Balance Sheets. The Company's lease agreements do not contain lease payments that depend on an index or a rate, as such, minimum lease payments do not include variable lease payments. Leased assets and liabilities include the following:
Description | Location | SEPTEMBER 30 2020 | DECEMBER 31 2019
Assets |  |  |
Operating | Operating lease right-of-use assets | $ | 10,448 |  | $ | 11,398 |
Finance | Property, plant and equipment, net (a) | $ | 144 |  | $ | 544 |
Liabilities |  |  |
Current |  |  |
Operating | Other current liabilities | $ | 1,296 |  | $ | 1,318 |
Finance | Current maturities of long-term debt | $ | 44 |  | $ | 558 |
Noncurrent |  |  |
Operating | Operating lease liabilities | $ | 11,494 |  | $ | 12,448 |
Finance | Long-term debt | $ | 103 |  | $ | 85 |
(a) Finance leased assets are recorded net of accumulated amortization of less than $0.1 million and $1.9 million as of September 30, 2020 and December 31, 2019, respectively. The components of lease expense were as follows:
|  | THREE MONTHS ENDED |  | NINE MONTHS ENDED
|  | SEPTEMBER 30 |  | SEPTEMBER 30
Description | Location | 2020 | 2019 |  | 2020 | 2019
Lease expense |  |  |  |  |  |
Operating lease cost | Selling, general and administrative expenses | $ | 499 |  | $ | 569 |  |  | $ | 1,513 |  | $ | 1,783 |
Finance lease cost: |  |  |  |  |  |
Amortization of leased assets | Cost of sales | 10 |  | 104 |  |  | 113 |  | 300 |
Interest on lease liabilities | Interest expense | 2 |  | 4 |  |  | 8 |  | 10 |
Variable lease expense | Selling, general and administrative expenses | 157 |  | 141 |  |  | 444 |  | 416 |
Short-term lease expense | Selling, general and administrative expenses | 89 |  | 79 |  |  | 248 |  | 242 |
Total lease expense |  | $ | 757 |  | $ | 897 |  |  | $ | 2,326 |  | $ | 2,751 |
Future minimum finance and operating lease payments were as follows at September 30, 2020:
| Finance Leases |  | Operating Leases |  | Total
Remainder of 2020 | $ | 13 |  |  | $ | 532 |  |  | $ | 545 |
2021 | 49 |  |  | 2,113 |  |  | 2,162 |
2022 | 49 |  |  | 2,162 |  |  | 2,211 |
2023 | 28 |  |  | 1,685 |  |  | 1,713 |
2024 | 12 |  |  | 1,660 |  |  | 1,672 |
Subsequent to 2024 | 7 |  |  | 9,421 |  |  | 9,428 |
Total minimum lease payments | $ | 158 |  |  | $ | 17,573 |  |  | $ | 17,731 |
Amounts representing interest | 11 |  |  | 4,783 |  |  |
Present value of net minimum lease payments | $ | 147 |  |  | $ | 12,790 |  |  |
As most of the Company's leases do not provide an implicit rate, the Company determines the incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The Company considers its credit rating and the current economic environment in determining this collateralized rate. The assumptions used in accounting for ASC 842 were as follows:
| THREE MONTHS ENDED |  | NINE MONTHS ENDED
| SEPTEMBER 30 |  | SEPTEMBER 30
Lease term and discount rate | 2020 | 2019 |  | 2020 | 2019
Weighted average remaining lease term (years) |  |  |  |  |
Operating | 9.19 | 9.76 |  | 9.19 | 9.76
Finance | 3.47 | 1.95 |  | 3.47 | 1.95
Weighted average discount rate |  |  |  |  |
Operating | 7.01 | % | 6.99 | % |  | 7.01 | % | 6.99 | %
Finance | 3.96 | % | 5.36 | % |  | 3.96 | % | 5.36 | %
The following table details cash paid for amounts included in the measurement of lease liabilities:
| THREE MONTHS ENDED |  | NINE MONTHS ENDED
| SEPTEMBER 30 |  | SEPTEMBER 30
Cash paid for amounts included in the measurement of lease liabilities | 2020 | 2019 |  | 2020 | 2019
Operating cash flows from operating leases | $ | 532 |  | $ | 608 |  |  | $ | 1,646 |  | $ | 1,768 |
Operating cash flows from finance leases | $ | 2 |  | $ | 4 |  |  | $ | 8 |  | $ | 10 |
Financing cash flows from finance leases | $ | 9 |  | $ | 115 |  |  | $ | 551 |  | $ | 347 |
Leases | Leases NACCO adopted ASU 2016-02, Leases (Topic 842), on January 1, 2019. The most significant effect to the Unaudited Condensed Consolidated Balance Sheets relates to the recognition of new right-of-use assets and lease liabilities for operating leases of real estate, mining and other equipment that expire at various dates through 2031. The majority of the Company's leases are operating leases. See the table below for further information on the balances included in the Unaudited Condensed Consolidated Balance Sheets. Several leases include renewal or fair value purchase options, which are not recognized on the Unaudited Condensed Consolidated Balance Sheets. The Company's lease agreements do not contain lease payments that depend on an index or a rate, as such, minimum lease payments do not include variable lease payments. Leased assets and liabilities include the following:
Description | Location | SEPTEMBER 30 2020 | DECEMBER 31 2019
Assets |  |  |
Operating | Operating lease right-of-use assets | $ | 10,448 |  | $ | 11,398 |
Finance | Property, plant and equipment, net (a) | $ | 144 |  | $ | 544 |
Liabilities |  |  |
Current |  |  |
Operating | Other current liabilities | $ | 1,296 |  | $ | 1,318 |
Finance | Current maturities of long-term debt | $ | 44 |  | $ | 558 |
Noncurrent |  |  |
Operating | Operating lease liabilities | $ | 11,494 |  | $ | 12,448 |
Finance | Long-term debt | $ | 103 |  | $ | 85 |
(a) Finance leased assets are recorded net of accumulated amortization of less than $0.1 million and $1.9 million as of September 30, 2020 and December 31, 2019, respectively. The components of lease expense were as follows:
|  | THREE MONTHS ENDED |  | NINE MONTHS ENDED
|  | SEPTEMBER 30 |  | SEPTEMBER 30
Description | Location | 2020 | 2019 |  | 2020 | 2019
Lease expense |  |  |  |  |  |
Operating lease cost | Selling, general and administrative expenses | $ | 499 |  | $ | 569 |  |  | $ | 1,513 |  | $ | 1,783 |
Finance lease cost: |  |  |  |  |  |
Amortization of leased assets | Cost of sales | 10 |  | 104 |  |  | 113 |  | 300 |
Interest on lease liabilities | Interest expense | 2 |  | 4 |  |  | 8 |  | 10 |
Variable lease expense | Selling, general and administrative expenses | 157 |  | 141 |  |  | 444 |  | 416 |
Short-term lease expense | Selling, general and administrative expenses | 89 |  | 79 |  |  | 248 |  | 242 |
Total lease expense |  | $ | 757 |  | $ | 897 |  |  | $ | 2,326 |  | $ | 2,751 |
Future minimum finance and operating lease payments were as follows at September 30, 2020:
| Finance Leases |  | Operating Leases |  | Total
Remainder of 2020 | $ | 13 |  |  | $ | 532 |  |  | $ | 545 |
2021 | 49 |  |  | 2,113 |  |  | 2,162 |
2022 | 49 |  |  | 2,162 |  |  | 2,211 |
2023 | 28 |  |  | 1,685 |  |  | 1,713 |
2024 | 12 |  |  | 1,660 |  |  | 1,672 |
Subsequent to 2024 | 7 |  |  | 9,421 |  |  | 9,428 |
Total minimum lease payments | $ | 158 |  |  | $ | 17,573 |  |  | $ | 17,731 |
Amounts representing interest | 11 |  |  | 4,783 |  |  |
Present value of net minimum lease payments | $ | 147 |  |  | $ | 12,790 |  |  |
As most of the Company's leases do not provide an implicit rate, the Company determines the incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The Company considers its credit rating and the current economic environment in determining this collateralized rate. The assumptions used in accounting for ASC 842 were as follows:
| THREE MONTHS ENDED |  | NINE MONTHS ENDED
| SEPTEMBER 30 |  | SEPTEMBER 30
Lease term and discount rate | 2020 | 2019 |  | 2020 | 2019
Weighted average remaining lease term (years) |  |  |  |  |
Operating | 9.19 | 9.76 |  | 9.19 | 9.76
Finance | 3.47 | 1.95 |  | 3.47 | 1.95
Weighted average discount rate |  |  |  |  |
Operating | 7.01 | % | 6.99 | % |  | 7.01 | % | 6.99 | %
Finance | 3.96 | % | 5.36 | % |  | 3.96 | % | 5.36 | %
The following table details cash paid for amounts included in the measurement of lease liabilities:
| THREE MONTHS ENDED |  | NINE MONTHS ENDED
| SEPTEMBER 30 |  | SEPTEMBER 30
Cash paid for amounts included in the measurement of lease liabilities | 2020 | 2019 |  | 2020 | 2019
Operating cash flows from operating leases | $ | 532 |  | $ | 608 |  |  | $ | 1,646 |  | $ | 1,768 |
Operating cash flows from finance leases | $ | 2 |  | $ | 4 |  |  | $ | 8 |  | $ | 10 |
Financing cash flows from finance leases | $ | 9 |  | $ | 115 |  |  | $ | 551 |  | $ | 347 |

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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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