ASC 842 Adoption - The Company adopted the provisions of ASC 842 beginning on April 1, 2019 using the transition methodology in ASC 842 which does not require adjustments to comparative periods or require modified disclosures. The Company elected the transition relief practical expedients. ASC 842 provides lessees with the option of electing an accounting policy, by class of underlying asset, in which the lessee may choose not to separate nonlease components from lease components. The Company elected this practical expedient for leases of certain classes of equipment. The Company also elected the accounting policy to not recognize the right-of-use asset and lease liability for leases with an initial expected term of 12 months or less (“Short-term leases”). The adoption of ASC 842 resulted in the recording of $13.3 million of additional lease liabilities and corresponding right-of-use assets to the beginning balance of the Company’s Condensed Consolidated Balance Sheet. The adoption did not have an impact on the Company’s Condensed Consolidated Statement of Operations and Condensed Consolidated Statement of Cash Flows.

Nature of the Company’s Leases - The Company has operating and finance leases for plants, yards, corporate offices, tractors, trailers and other equipment. The Company’s leases have a remaining term of less than one year to 30 years, some of which include options to extend the leases for up to 5 years.

The Company’s lease payments are generally fixed. Certain equipment leases contain residual value guarantees that create a contingent obligation on the part of the Company to compensate the lessor if the leased asset cannot be sold for an amount in excess of a specified minimum value at the conclusion of the lease term. The calculation is based on the original cost of the transportation equipment, less lease payments made, compared to a percentage of the transportation equipment’s fair market value at the time of sale. All leased units covered by this guarantee have been classified as finance leases and a corresponding finance lease obligation was recorded. Therefore, no contingent obligation is needed.

For all leases with an initial expected term of more than 12 months, the Company recorded, at the adoption date of ASC 842 or lease commencement date for leases entered into after the adoption date, a lease liability, which is the lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The Company will utilize its collateralized incremental borrowing rate commensurate to the lease term as the discount rate for its leases, unless the Company can specifically determine the lessor’s implicit rate. The incremental borrowing rate for each is lease is determined based on its term and adjusted for the impacts of collateral.

Lease Expense - The components of lease expense for the three months ended June 30, 2019 was as follows:

(Amounts in thousands)	Income Statement Classification	2019
Operating lease cost
Operating lease expense	Cost of goods sold	$	948
Operating lease expense	General and administrative		90
Short-term lease expense	Cost of goods sold		736
Total operating lease cost		$	1,774
Finance lease cost
Amortization of right-of-use assets	Cost of goods sold		4,554
Amortization of right-of-use assets	General and administrative		356
Interest on lease liabilities	Interest expense		1,159
Total finance lease cost		$	6,069

Supplemental cash flow information related to leases for the three months ended June 30, 2019 was as follows:

(Amounts in thousands)	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,038
Operating cash flows from finance leases		1,174
Financing cash flows from finance leases		6,047
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		1,219
Finance leases		296

Supplemental balance sheet information related to leases as of June 30, 2019 was as follows:

(Amounts in thousands)	Balance Sheet Classification	2019
Operating leases
Right-of-use assets	Other assets	$	13,203
Current lease liabilities	Other accrued liabilities		3,809
Non-current lease liabilities	Other liabilities		9,407
Total operating lease liabilities		$	13,216
Finance leases
Right-of-use assets	Property, plant and equipment		106,018
Current lease liabilities	Current maturities of finance lease obligations		22,695
Non-current lease liabilities	Long-term finance lease obligations		56,368
Total finance lease liabilities		$	79,063

Weighted average lease term
Operating leases			8.36
Finance leases			11.15
Weighted average discount rate
Operating leases			3.54	%
Finance leases			4.98	%

The following is a schedule by year of future minimum lease payments on a rolling twelve-month basis under operating and finance leases and the present value of the net minimum lease payments as of June 30, 2019:

(Amounts in thousands)	Operating Leases		Finance Leases
Year 1	$	4,154	$	26,010
Year 2		3,607		21,732
Year 3		2,362		17,117
Year 4		1,261		10,780
Year 5		842		6,553
Thereafter		4,296		7,528
Total minimum lease payments	$	16,522	$	89,720
Less: amount representing interest		3,306		10,657
Present value of net minimum lease payments	$	13,216	$	79,063

As of March 31, 2019, total contractual obligations for capital and operating leases were as follows:

(Amounts in thousands)	Operating Leases		Capital Leases
2020	$	4,159	$	26,604
2021		2,924		22,507
2022		1,814		18,064
2023		690		11,721
2024		325		7,143
Thereafter		2,236		8,198
Total minimum lease payments	$	12,148	$	94,237
Less: amount representing interest		—		9,565
Present value of net minimum lease payments	$	12,148	$	84,672