LEASES

9 Months Ended

Sep. 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 September 30, 2019 were as follows (in thousands):

2019	$	9,503
2020		33,200
2021		25,550
2022		22,573
2023		18,684
Thereafter		95,939
Total lease payments		205,449
Less: imputed interest		(41,431	)
Operating lease liabilities	$	164,018

As of December 31, 2018, future total rentals on the Company’s noncancelable 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 nine months ended September 30, 2019 (in thousands):

	Three months ended September 30, 2019			Nine months ended September 30, 2019
Operating lease cost	$	9,490		$	29,461
Variable lease cost		386			1,417
Short-term lease cost		7,727			24,582
Sublease income		(366	)		(924	)
Total lease cost	$	17,237		$	54,536

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

Weighted average discount rate			4.0	%
Weighted average remaining lease term		10 years