LEASES

6 Months Ended

Jun. 30, 2019

(3) LEASES

The Company currently leases various facilities and equipment under cancelable and noncancelable operating leases. The accounting for the Company’s leases may require judgments, which include determining whether a contract contains a lease, the allocation between lease and non-lease components, and determining the incremental borrowing rates. Leases with an initial noncancelable term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. The Company has also elected to combine lease and non-lease components on all classes of leased assets, except for leased towing vessels for which the Company estimates approximately 75% of the costs relate to service costs and other non-lease components. Variable lease costs relate primarily to real estate executory costs (i.e. taxes, insurance and maintenance).

Future minimum lease payments under operating leases that have initial noncancelable lease terms in excess of one year at June 30, 2019 were as follows (in thousands):

	Total
2019	$	18,826
2020		29,857
2021		24,685
2022		21,532
2023		17,583
Thereafter		94,907
Total lease payments		207,390
Less: imputed interest		(40,998	)
Operating lease liabilities	$	166,392

As of December 31, 2018, future total rentals on the Company’s noncancellable operating leases were $278,602,000 in the aggregate, which consisted of the following: $97,091,000 in 2019; $30,062,000 in 2020; $21,818,000 in 2021; $20,263,000 in 2022; $17,429,000 in 2023; and $91,939,000 thereafter.

The following table summarizes lease cost for the three and six months ended June 30, 2019 (in thousands):

	Three months ended June 30, 2019			Six months ended June 30, 2019
Operating lease cost	$	9,893		$	19,971
Variable lease cost		515			1,031
Short-term lease cost		8,963			16,855
Sublease income		(318	)		(558	)
Total lease cost	$	19,053		$	37,299

The following table summarizes other supplemental information about the Company’s operating leases as of June 30, 2019:

Weighted average discount rate			4.1	%
Weighted average remaining lease term		10 years