Leases

12 Months Ended

Dec. 31, 2019

Disclosures subsequent to the adoption of ASC 842

Lessee

At December 31, 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	December 31, 2019
Right-of-use assets
Operating	Operating right-of-use assets	$	28,178
Financing	Property, plant and equipment, net	505
Total right-of use assets		$	28,683

Lease liabilities
Operating	Operating lease liabilities, current and long-term portions	$	28,577
Financing	Long-term debt, current and long-term portions	590
Total lease liabilities		$	29,167

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 year ended December 31, 2019 is as follows:


	December 31, 2019
Finance lease cost
Amortization of right-of-use assets	$	134
Interest on lease liabilities	43
Operating lease cost	16,640
Short-term lease cost	470


Total lease cost	$	17,287

Other information related to the Company’s leasing activity for year ended December 31, 2019 is as follows:



Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for finance leases	$	43
Operating cash flows used for operating leases	$	16,714
Financing cash flows used for finance leases	$	104

Right-of-use assets obtained in exchange for new finance lease liabilities	$	55
Right of use assets upon adoption	$	35,939
Right-of-use assets obtained in exchange for new operating lease liabilities	$	7,251


Weighted average remaining lease term - finance leases	3.6 years
Weighted average discount rate - finance leases	6.55		%
Weighted average remaining lease term - operating leases	2.6 years
Weighted average discount rate - operating leases	5.50		%

Maturities of the Company’s lease liabilities as of December 31, 2019 are as follows:


Year	Operating Leases		Finance Leases		Total
2020	$	14,292	$	151	$	14,443
2021	10,005		151		10,156
2022	4,034		136		4,170
2023	1,394		245		1,639
2024	888		—		888

Total cash lease payments	30,613		683		31,296
Less: amounts representing interest	(2,036)		(93)		(2,129)
Total lease liabilities	$	28,577	$	590	$	29,167

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 for the years ended December 31, 2018 and 2017 was $155 and $255, respectively.

Operating Leases

Expense related to operating leases and rental agreements for the years ended December 31, 2018 and 2017 was $10,239 and $7,065, respectively. Lease expense related to railcars is included in cost of goods sold in the consolidated statements of operations.