Leases

3 Months Ended

Mar. 31, 2021

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, 2021 and 2020 were as follows:

	Three Months Ended March 31,
($ in thousands)	2021		2020
Finance lease cost:
Amortization of right-of-use assets	$	1,795	$	2,654
Interest on lease liabilities	537		596
Operating lease cost	7,267		5,471
Variable lease cost	557		795
Short-term lease cost	309		—
Total lease cost	$	10,465	$	9,516

Supplemental cash flow and other information related to leases for the three months ended March 31, 2021 and 2020 were as follows:

	Three Months Ended March 31,
($ in thousands)	2021		2020
Cash paid for amounts included in measurement of liabilities:
Operating leases	$	6,430	$	5,432
Finance leases	2,863		3,066
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	31		5,226
Finance leases	—		—

During the three months ended March 31, 2021, the Company amended certain finance leases, the change in terms of which caused the leases to be reclassified to operating leases. In connection with the amendments, the Company wrote-off finance lease right-of-use assets and liabilities of $0.8 million and $0.6 million, respectively, and recognized operating lease right-of-use assets and liabilities of $0.7 million and $0.5 million, respectively. There was no gain or loss recognized as a result of these amendments.

Lease terms and discount rates as of March 31, 2021 and December 31, 2020 were as follows:

	March 31, 2021		December 31, 2020
Weighted-average remaining lease term:
Operating leases	5.9 years		5.9 years
Finance leases	1.3 years		1.5 years
Weighted-average discount rate:
Operating leases	4.7	%	4.8	%
Finance leases	5.8	%	5.8	%

Future minimum lease commitments as of March 31, 2021 are as follows:

($ in thousands)	Finance		Operating
Remainder of 2021	$	18,323	$	20,409
2022	8,491		19,069
2023	4,356		8,513
2024	—		5,782
2025	—		4,155
Thereafter	—		21,981
Total lease payments	31,170		79,909
Less imputed interest	(2,221)		(11,165)
Total	$	28,949	$	68,744

Excluded from the future minimum lease commitments above is $2.6 million of lease payments for new operating leases executed during the three months ended March 31, 2021, not yet commenced as of March 31, 2021.

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, 2021 is $8.7 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 finance leases, the Company includes the residual value guarantee, 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, 2021 and 2020 were as follows:

	Three Months Ended March 31,
($ in thousands)	2021		2020
Finance lease cost:
Amortization of right-of-use assets	$	1,795	$	2,654
Interest on lease liabilities	537		596
Operating lease cost	7,267		5,471
Variable lease cost	557		795
Short-term lease cost	309		—
Total lease cost	$	10,465	$	9,516

Supplemental cash flow and other information related to leases for the three months ended March 31, 2021 and 2020 were as follows:

	Three Months Ended March 31,
($ in thousands)	2021		2020
Cash paid for amounts included in measurement of liabilities:
Operating leases	$	6,430	$	5,432
Finance leases	2,863		3,066
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	31		5,226
Finance leases	—		—

During the three months ended March 31, 2021, the Company amended certain finance leases, the change in terms of which caused the leases to be reclassified to operating leases. In connection with the amendments, the Company wrote-off finance lease right-of-use assets and liabilities of $0.8 million and $0.6 million, respectively, and recognized operating lease right-of-use assets and liabilities of $0.7 million and $0.5 million, respectively. There was no gain or loss recognized as a result of these amendments.

Lease terms and discount rates as of March 31, 2021 and December 31, 2020 were as follows:

	March 31, 2021		December 31, 2020
Weighted-average remaining lease term:
Operating leases	5.9 years		5.9 years
Finance leases	1.3 years		1.5 years
Weighted-average discount rate:
Operating leases	4.7	%	4.8	%
Finance leases	5.8	%	5.8	%

Future minimum lease commitments as of March 31, 2021 are as follows:

($ in thousands)	Finance		Operating
Remainder of 2021	$	18,323	$	20,409
2022	8,491		19,069
2023	4,356		8,513
2024	—		5,782
2025	—		4,155
Thereafter	—		21,981
Total lease payments	31,170		79,909
Less imputed interest	(2,221)		(11,165)
Total	$	28,949	$	68,744

Excluded from the future minimum lease commitments above is $2.6 million of lease payments for new operating leases executed during the three months ended March 31, 2021, not yet commenced as of March 31, 2021.

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, 2021 is $8.7 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 finance leases, the Company includes the residual value guarantee, estimated in the lease agreement, in the financing lease liability.