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Note 6 - Leases

9 Months Ended

Sep. 30, 2020

6.	LEASES

The Company’s operating lease portfolio includes operational field locations, administrative offices, equipment, vehicles and information technology equipment. The majority of the Company’s leases have remaining lease terms of 1 year to 20 years, some of which include options to extend the leases for 5 years or more. Right-of-use assets are presented within “Operating lease assets” on the Consolidated Balance Sheet. The current portion of operating lease liabilities are presented within “Accrued expenses”, and the non-current portion of operating lease liabilities are presented within “Operating lease liabilities” on the Consolidated Balance Sheet.

Operating lease assets and liabilities are recognized based on the present value of lease payments over the lease term at inception. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating leases in effect prior to January 1, 2019 were recognized at the present value of the remaining payments on the remaining lease term as of January 1, 2019. A portion of the Company’s real estate, equipment and vehicle leases is subject to periodic changes in the Consumer Price Index, LIBOR or other market index. The changes to these indexes are treated as variable lease payments and recognized in the period in which the obligation for those payments is incurred. Because most leases do not provide an explicit rate of return, the Company utilizes its incremental secured borrowing rate on a lease-by-lease basis in determining the present value of lease payments at the commencement date of the lease.

The following table presents the components of lease expense (in thousands):

	Quarter Ended September 30,				Nine Months Ended September 30,
	*2020*		*2019*		*2020*		*2019*
Operating lease cost	$	4,912	$	5,501	$	15,050	$	16,891
Short-term lease cost		5,422		8,125		16,288		20,846
Total lease cost	$	10,334	$	13,626	$	31,338	$	37,737

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

	*September 30, 2020(1)*			*December 31, 2019(2)*
Operating leases:
Operating lease assets	$	67,504		$	71,466

Accrued expenses	$	16,490		$	15,828
Other liabilities		52,418			56,253
Total operating lease liabilities	$	68,908		$	72,081

Weighted-average remaining lease term (in years)		5.59			5.74
Weighted-average discount rate		4.86	%		5.71	%

	⁽¹⁾	Amounts exclude operating lease assets of $0.2 million, accrued expenses of less than $0.1 and other liabilities of less than $0.1 million that were classified as held for sale at September 30, 2020 (see Note 5).
	⁽²⁾	Amounts exclude operating lease assets of $0.3 million, accrued expenses of $0.2 million and other liabilities of $0.2 million that were classified as held for sale at December 31, 2019 (see Note 5).