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Leases

3 Months Ended

Mar. 31, 2020

The Company has operating leases for certain of its corporate offices, field shops, apartments, warehouses, rail cars, frac pumps, trailers, tractors and certain other equipment. The Company also has both operating and finance leases for its light duty vehicles.

The Company's leases have variable payments with annual escalations that are based on the proportion by which the consumer price index ("CPI") for all urban consumers increased over the CPI index for the prior comparative year. The Company's leases have remaining lease terms of less than 1 year to 14 years, some of which include extension and termination option. None of these extension and termination options were used to determine the Company's right-of-use assets and lease liabilities, as the Company has not determined it is probable that it will exercise any of these options. None of the Company's leases have residual value guarantees.

The components of the Company's lease costs are as follows:



	(Thousands of Dollars)
	Three Months Ended March 31,
	2020			2019
Operating lease cost	$	6,969		$	6,631
Finance lease cost:
Amortization of right-of-use assets	789			875
Interest on lease liabilities	110			220
Total finance lease cost	899			1,095
Short-term lease cost	212			190
Variable lease cost⁽¹⁾	2,596			5,463
Sublease income	(27		)	(27		)
Total lease cost	$	10,649		$	13,352

(1)Cost from variable amounts excluded from determination of lease liability.

Supplemental cash flows related to leases are as follows:



	(Thousands of Dollars)
	Three Months Ended March 31,
	2020		2019
Cash paid for amounts included in the measurements of lease liabilities
Operating cash flows from operating leases	$	7,442	$	11,461
Operating cash flows from finance leases	108		158
Financing cash flows from finance leases	$	2,278	$	1,396

Weighted average remaining lease terms are as follows:



	Three Months Ended March 31,
	2020	2019
Operating leases	4.85 years	4.91 years
Finance leases	2.39 years	3.11 years

Weighted average discount rate on the Company's lease liabilities are as follows:



	Three Months Ended March 31,
	2020	2019
Operating leases	4.36%	6.53%
Finance leases	5.86%	5.79%

Maturities of the Company's lease liabilities as of March 31, 2020, per ASU 2016-02, were as follows:



	(Thousands of Dollars)
Year ending December 31,	Operating leases			Finance leases
2020	$	19,081		$	2,574
2021	11,826			3,168
2022	9,847			1,643
2023	7,041			273
2024	2,171			—
Thereafter	10,921			—
Total undiscounted remaining minimum lease payments	60,887			7,658
Less imputed interest	(9,030		)	(497		)
Total discounted remaining minimum lease payments	$	51,857		$	7,161

The Company did not make any lease reassessments or modifications nor did it recognize any gains or losses on sale-leaseback transactions during the three months ended March 31, 2020.

As of March 31, 2020, the Company does not have additional operating and finance leases that have not yet commenced, nor did the Company have any lease transactions with any of its related parties.

Leases