Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

Leases

The Company has operating and finance leases primarily for vehicles, equipment, railcars, office space, and facilities. The terms and conditions for these leases vary by the type of underlying asset.

Certain leases include variable lease payments for items such as property taxes, insurance, maintenance, and other operating expenses associated with leased assets. Payments that vary based on an index or rate are included in the measurement of lease assets and liabilities at the rate as of the commencement date. All other variable lease payments are excluded from the measurement of lease assets and liabilities, and are recognized in the period in which the obligation for those payments is incurred.

The components of lease expense for the three months ended March 31, 2020 and 2019 were as follows:

	Three Months Ended March 31,
($ in thousands)	2020		2019
Finance lease cost:
Amortization of right-of-use assets	$	2,654	$	2,366
Interest on lease liabilities	596		651
Operating lease cost	5,471		5,211
Variable lease cost	795		1,004
Total lease cost	$	9,516	$	9,232

Supplemental cash flow and other information related to leases for the three months ended March 31, 2020 and 2019 were as follows:

	Three Months Ended March 31,
($ in thousands)	2020		2019
Cash paid for amounts included in measurement of liabilities:
Operating leases	$	5,432	$	7,798
Finance leases	3,066		3,282
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	5,226		69,430
Finance leases	—		57,421

Lease terms and discount rates as of March 31, 2020 and December 31, 2019 were as follows:

	March 31, 2020		December 31, 2019
Weighted-average remaining lease term:
Operating leases	6.3 years		6.4 years
Finance leases	1.1 years		1.3 years
Weighted-average discount rate:
Operating leases	5.4	%	5.4	%
Finance leases	5.2	%	5.2	%

Future minimum lease commitments as of March 31, 2020 are as follows:

($ in thousands)	Finance		Operating
Remainder of 2020	$	23,341	$	15,010
2021	20,626		14,942
2022	4,135		8,029
2023	—		4,832
2024	—		4,001
Thereafter	—		16,017
Total lease payments	48,102		62,831
Less imputed interest	(2,041)		(10,214)
Total	$	46,061	$	52,617

The Company’s vehicle leases typically include a residual value guarantee. For the Company’s vehicle leases classified as operating leases, the total residual value guaranteed as of March 31, 2020 is $3.2 million; the payment is not probable and therefore has not been included in the measurement of the lease liability and right-of-use asset. For vehicle leases that are classified as financing leases, the Company includes the residual value guarantee as estimated in the lease agreement, in the financing lease liability.

Leases

Leases

The Company has operating and finance leases primarily for vehicles, equipment, railcars, office space, and facilities. The terms and conditions for these leases vary by the type of underlying asset.

Certain leases include variable lease payments for items such as property taxes, insurance, maintenance, and other operating expenses associated with leased assets. Payments that vary based on an index or rate are included in the measurement of lease assets and liabilities at the rate as of the commencement date. All other variable lease payments are excluded from the measurement of lease assets and liabilities, and are recognized in the period in which the obligation for those payments is incurred.

The components of lease expense for the three months ended March 31, 2020 and 2019 were as follows:

	Three Months Ended March 31,
($ in thousands)	2020		2019
Finance lease cost:
Amortization of right-of-use assets	$	2,654	$	2,366
Interest on lease liabilities	596		651
Operating lease cost	5,471		5,211
Variable lease cost	795		1,004
Total lease cost	$	9,516	$	9,232

Supplemental cash flow and other information related to leases for the three months ended March 31, 2020 and 2019 were as follows:

	Three Months Ended March 31,
($ in thousands)	2020		2019
Cash paid for amounts included in measurement of liabilities:
Operating leases	$	5,432	$	7,798
Finance leases	3,066		3,282
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	5,226		69,430
Finance leases	—		57,421

Lease terms and discount rates as of March 31, 2020 and December 31, 2019 were as follows:

	March 31, 2020		December 31, 2019
Weighted-average remaining lease term:
Operating leases	6.3 years		6.4 years
Finance leases	1.1 years		1.3 years
Weighted-average discount rate:
Operating leases	5.4	%	5.4	%
Finance leases	5.2	%	5.2	%

Future minimum lease commitments as of March 31, 2020 are as follows:

($ in thousands)	Finance		Operating
Remainder of 2020	$	23,341	$	15,010
2021	20,626		14,942
2022	4,135		8,029
2023	—		4,832
2024	—		4,001
Thereafter	—		16,017
Total lease payments	48,102		62,831
Less imputed interest	(2,041)		(10,214)
Total	$	46,061	$	52,617

The Company’s vehicle leases typically include a residual value guarantee. For the Company’s vehicle leases classified as operating leases, the total residual value guaranteed as of March 31, 2020 is $3.2 million; the payment is not probable and therefore has not been included in the measurement of the lease liability and right-of-use asset. For vehicle leases that are classified as financing leases, the Company includes the residual value guarantee as estimated in the lease agreement, in the financing lease liability.