Leases (Notes)

9 Months Ended

Sep. 30, 2019

Disclosures subsequent to the adoption of ASC 842

Lessee

At September 30, 2019, the operating and financing components of the Company’s right-of-use assets and lease liabilities on the consolidated balance sheet are as follows:



	Balance Sheet Location	September 30, 2019
Right-of-use assets
Operating	Operating right-of-use assets	$	29,702
Financing	Property, plant and equipment, net	650
Total right-of use assets		$	30,352

Lease liabilities
Operating	Operating lease liabilities, current and long-term portions	$	29,196
Financing	Long-term debt, current and long-term portions	598
Total lease liabilities		$	29,794

Operating lease costs are recorded in a single expense on the income statement and allocated to the right-of-use assets and the related lease liabilities as depreciation expense and interest expense, respectively. Lease cost recognized in the consolidated income statement for the three and nine months ended September 30, 2019 is as follows:



	Three Months Ended		Nine Months Ended
	September 30, 2019		September 30, 2019
Finance lease cost
Amortization of right-of-use assets	$	35	$	99
Interest on lease liabilities	10		32
Operating lease cost	4,105		11,469
Short-term lease cost	160		294
Total lease cost	$	4,310	$	11,894

Other information related to the Company’s leasing activity for the nine months ended September 30, 2019 is as follows:



	Nine Months Ended
	September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for finance leases	$	33
Operating cash flows used for operating leases	$	12,447
Financing cash flows used for finance leases	$	79

Right-of-use assets obtained in exchange for new finance lease liabilities	$	55
Right-of-use assets recorded upon adoption	$	35,939
Right-of-use assets obtained in exchange for new operating lease liabilities	$	5,053


Weighted average remaining lease term - finance leases	3.9 years
Weighted average discount rate - finance leases	6.60		%
Weighted average remaining lease term - operating leases	2.8 years
Weighted average discount rate - operating leases	5.50		%

Maturities of the Company’s lease liabilities as of September 30, 2019 are as follows:



Year	Operating Leases			Finance Leases			Total
Remainder of 2019	$	2,841		$	32		$	2,873
2020	13,238			165			13,403
2021	9,123			165			9,288
2022	4,034			151			4,185
2023	1,394			161			1,555
Thereafter	888			—			888
Total cash lease payments	31,518			674			32,192
Less: amounts representing interest	(2,322		)	(76		)	(2,398		)
Total lease liabilities	$	29,196		$	598		$	29,794

Disclosures prior to the adoption of ASC 842

Capital Leases

The Company entered into various lease arrangements to lease equipment. Equipment cost of $657 was capitalized and included in the Company’s property, plant and equipment as of December 31, 2018. Depreciation expense under leased assets was approximately $3 and $113 for the three and nine months ended September 30, 2018, respectively.

Operating Leases

Expense related to operating leases and other rental agreements was $3,965 and $10,658 for three and nine months ended September 30, 2018, respectively. Lease expense related to railcars is included in cost of goods sold in the condensed consolidated income statements.

Leases