Leases

3 Months Ended

Mar. 31, 2021

(5)

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 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 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):

	March 31,			December 31,
	2021			2020
2021	$	30,948		$	40,224
2022		34,976			33,543
2023		29,465			28,012
2024		24,032			23,578
2025		21,606			21,261
Thereafter		97,885			96,491
Total lease payments		238,912			243,109
Less: imputed interest		(45,057	)		(46,863	)
Operating lease liabilities	$	193,855		$	196,246

The following table summarizes lease costs (in thousands):

	Three Months Ended March 31,
	2021			2020
Operating lease cost	$	10,392		$	9,041
Variable lease cost		709			152
Short-term lease cost		3,053			8,277
Sublease income		(274	)		(244	)
	$	13,880		$	17,226

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

	March 31,			December 31,
	2021			2020
Weighted average discount rate		4.1	%		4.1	%
Weighted average remaining lease term	10 years			10 years