Leases

12 Months Ended

Dec. 31, 2020

(6)

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, allocating the consideration 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 70% 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 were as follows (in thousands):

	December 31,
	2020			2019
2021	$	40,224		$	33,374
2022		33,543			25,911
2023		28,012			23,098
2024		23,578			19,162
2025		21,261			15,330
Thereafter		96,491			92,991
Total lease payments		243,109			209,866
Less: imputed interest		(46,863	)		(43,085	)
Operating lease liabilities	$	196,246		$	166,781

The following table summarizes lease costs (in thousands):

	Year Ended December 31,
	2020			2019
Operating lease cost	$	43,810		$	39,064
Variable lease cost		1,550			2,326
Short-term lease cost		25,387			31,340
Sublease income		(1,143	)		(420	)
Total lease cost	$	69,604		$	72,310

The following table summarizes other supplemental information about the Company’s operating leases:

	December 31,
	2020			2019
Weighted average discount rate		4.1	%		4.0	%
Weighted average remaining lease term	10 years			11 years