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Leases

9 Months Ended

Sep. 30, 2020

LeasesThe Company primarily enters into rental agreements for certain mining equipment that are for periods of 12 months or less, some of which include options to extend the leases. Leases that are for periods of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense on these agreements on a straight-line basis over the lease term. Additionally, the Company has certain finance leases for mining equipment that expire over various contractual periods. The

leases have remaining lease terms of one to five years. These leases do not include an option to renew. Amortization expense for finance leases is included in depreciation and depletion expense.

Supplemental balance sheet information related to leases was as follows (in thousands):


	September 30, 2020			December 31, 2019
Finance lease right-of-use assets, net(1)	$	43,882		$	40,227
Finance lease liabilities
Current	11,874			10,146
Noncurrent	24,476			25,528
Total finance lease liabilities	$	36,350		$	35,674

Weighted average remaining lease term - finance leases (in months)	41.9			44.7
Weighted average discount rate - finance leases(2)	5.70		%	6.02		%

(1) Finance lease right-of-use assets are recorded net of accumulated amortization of $8.1 million and $4.8 million and are included in property, plant and equipment, net in the Condensed Balance Sheet as of September 30, 2020 and the Balance Sheet as of December 31, 2019, respectively.

(2) When an implicit discount rate is not readily available in a lease, the Company uses its incremental borrowing rate based on information available at the commencement date when determining the present value of lease payments.

The components of lease expense were as follows (in thousands):


	For the three months ended September 30,				For the nine months ended September 30,
	2020		2019		2020		2019
Operating lease cost(1):	$	801	$	688	$	1,594	$	1,866
Finance lease cost:
Amortization of leased assets	2,943		2,120		8,859		7,950
Interest on lease liabilities	315		786		1,403		1,194
Net lease cost	$	4,059	$	3,594	$	11,856	$	11,010

(1) Includes leases that are for periods of 12 months or less.

Maturities of lease liabilities were as follows (in thousands):


	Finance Leases(1)
2020	$	3,741
2021	15,412
2022	9,680
2023	9,680
2024	1,964
Thereafter	382
Total	40,859
Less: amount representing interest	(4,509)
Present value of lease liabilities	$	36,350

(1) Finance lease payments include $2.9 million of future payments required under signed lease agreements that have not yet commenced.

Supplemental cash flow information related to leases was as follows (in thousands):


	For the nine months ended September 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	1,403	$	1,194
Financing cash flows from finance leases	$	10,972	$	13,086
Non-cash right-of-use assets obtained in exchange for lease obligations:
Finance leases	$	12,036	$	42,114

As of September 30, 2020, the Company had additional commitments for finance leases, primarily for mining equipment, that have not yet commenced of $2.9 million. These finance leases will commence between fiscal year 2020 and 2021 with lease terms of one to two years.

Leases