18.

LEASES

The Partnership adopted ASU

2016

02,

Leases (Topic

842

)

as of

January 1, 2019,

using the modified retrospective approach applied at the beginning of the period of adoption. The Partnership elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed it to carry forward the historical lease classification.

Adoption of the new standard resulted in the recording of additional net right of use operating lease assets and operating lease liabilities of approximately

$11.8

million and

$11.9

million, respectively, as of

January 1, 2019.

The standard did

not

materially impact the consolidated statements of operations and had

impact on cash flows.

The Partnership leases certain office space, land and equipment. Leases with an initial term of

months or less are

not

recorded on the balance sheet; lease expense for these leases is recognized as paid over the lease term. For real property leases, the Partnership has elected the practical expedient to

not

separate nonlease components (e.g., common-area maintenance costs) from lease components and to instead account for each component as a single lease component. For leases that do

not

contain an implicit interest rate, the Partnership uses its most recent incremental borrowing rate.

Some real property and equipment leases contain options to renew, with renewal terms that can extend indefinitely. The exercise of such lease renewal options is at the Partnership’s sole discretion. Certain equipment leases also contain purchase options and residual value guarantees. The Partnership determines the lease term at the lease commencement date as the non-cancellable period of the lease, including options to extend or terminate the lease when such an option is reasonably certain to be exercised. The Partnership uses various data to analyze these options, including historical trends, current expectations and useful lives of assets related to the lease.

		As of
	Classification	December 31, 2019
		(thousands)
Assets
Operating lease assets	Operating lease assets	$	10,758
Finance lease assets	Other noncurrent assets		750
Total leased assets		$	11,508
Liabilities
Current
Operating lease liabilities	Current operating lease liability	$	2,391
Finance lease liabilities	Other current liabilities		320
Noncurrent
Operating lease liabilities	Noncurrent operating lease liability		8,529
Finance lease liabilities	Other long-term liabilities		430
Total lease liabilities		$	11,670

Future commitments, including options to extend lease terms that are reasonably certain of being exercised, related to leases at

December 31, 2019,

are summarized below (in thousands):

	Operating Leases		Financing Leases
Twelve months ending December 31, 2020	$	2,604	$	350
Twelve months ending December 31, 2021		2,121		277
Twelve months ending December 31, 2022		1,518		144
Twelve months ending December 31, 2023		1,432		28
Twelve months ending December 31, 2024		814		1
Thereafter		6,064		-
Total		14,553		800
Less: Interest		3,633		50
Present value of lease liabilities	$	10,920	$	750

Future non-cancellable commitments related to operating leases at

December 31, 2018,

are summarized below (in thousands):

	Operating Leases
Twelve months ending December 31, 2019	$	2,862
Twelve months ending December 31, 2020		1,904
Twelve months ending December 31, 2021		1,242
Twelve months ending December 31, 2022		640
Twelve months ending December 31, 2023		548
Thereafter		1,259
Total future minimum lease payments	$	8,455

The following table summarizes the Partnership’s total lease cost by type as well as cash flow information (in thousands):

		For the Year Ended December 31,
	Classification	2019
Total Lease Cost by Type:
Operating lease cost(1)	Operating Expense	$	3,345
Short-term lease cost	Operating Expense	$	479
Finance lease cost
Amortization of leased assets	Operating Expense		322
Interest on lease liabilities	Interest Expense		37
Net lease cost		$	4,183
Supplemental cash flow disclosures:
Cash paid for amounts included in the measurement of lease liabilities:
Payments on operating leases		$	2,722
Principal payments under finance lease obligations		$	267
Interest payments under finance lease obligations		$	17
Leased assets obtained in exchange for new operating lease liabilities		$	1,714
Leased assets obtained in exchange for new finance lease liabilities		$	520

(

)

Includes variable lease costs, which are immaterial.

	As of
	December 31,
	2019
Lease Term and Discount Rate
Weighted-average remaining lease term (years)
Operating leases		9.8
Finance leases		2.6
Weighted-average discount rate
Operating leases		5.80	%
Finance leases		4.87	%

The Partnership also incurs costs associated with acquiring and maintaining rights-of-way. The contracts for these generally either extend beyond

one

year but can be cancelled at any time should they

longer be required for operations or have

contracted term but contain perpetual annual or monthly renewal options. Rights-of-way generally do

not

provide for exclusive use of the land and as such are

not

accounted for as leases.