Leases

3 Months Ended

Mar. 31, 2020

Note 6 — Leases

Operating Leases

The Company has operating leases, primarily for real estate and equipment, with terms that vary from 12 months to seven years, included in Operating lease costs in the table below. The operating leases are included in Operating leases, right-of-use assets, Other current liabilities and Operating leases, right-of-use obligations in the Condensed Consolidated Balance Sheet.

Lease costs associated with yard and field offices are included in Cost of Services and executive offices are included in General and administrative costs in the Condensed Consolidated Statements of Operations. Lease costs and other information related to operating leases for the three months ended March 31, 2020 and 2019, are as follows (in millions):



	Three Months Ended March 31,
	2020			2019
Short-term lease costs	$	0.8		$	2.2
Operating lease cost	$	0.7		$	0.7
Operating cash outflows from operating leases	$	0.7		$	0.8

Weighted average remaining lease term	5.8 years			5.5 years
Weighted average discount rate	9.3		%	9.4		%

Aggregate future minimum lease payments under operating leases are as follows (in millions):



For the twelve months ending March 31,	Total
2021	$	2.1
2022	1.1
2023	0.9
2024	0.8
2025	0.8
Thereafter	2.2
Total future minimum lease payments	7.9
Less: amount representing interest	(1.8		)
Present value of future minimum lease payments	6.1
Less: current portion of operating lease obligations	(1.7		)
Long-term portion of operating lease obligations	$	4.4

Finance Leases

The Company leases certain assets, primarily automobiles, under finance leases with terms that are generally three to four years. The assets and liabilities under finance leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the assets. The assets are amortized over the shorter of the estimated useful lives or over the lease term. The finance leases are included in Property and equipment, net, Finance lease obligations, current portion and Finance lease obligations in the Condensed Consolidated Balance Sheet.

Lease costs and other information related to finance leases for the three months ended March 31, 2020 and 2019, are as follows (in millions):



	Three Months Ended March 31,
	2020			2019
Amortization of finance leases	$	1.4		$	1.3
Interest on lease liabilities	$	0.2		$	0.2
Financing cash outflows from finance leases	$	1.3		$	1.1

Weighted average remaining lease term	1.5 years			2.0 years
Weighted average discount rate	4.2		%	4.6		%

Aggregate future minimum lease payments under finance leases are as follows (in millions):



For the twelve months ending March 31,	Total
2021	$	5.3
2022	2.2
2023	0.6
2024	0.2
Total future minimum lease payments	8.3
Less: amount representing interest	(0.5		)
Present value of future minimum lease payments	7.8
Less: current portion of finance lease obligations	(4.9		)
Long-term portion of finance lease obligations	$	2.9

Leases