LEASES

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

LEASES

LEASES

The Company leases certain rail cars, rail equipment, office space and office equipment. The Company determines if a contract is a lease at the inception of the arrangement. The Company reviews all options to extend, terminate, or purchase its right-of-use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised.

Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets. Lease expense for these leases is recognized on a straight-line basis over the lease term.

The Company has no finance leases.

The components of lease expense were as follows:
($ in thousands)	Classification in the Condensed Consolidated Statements of Income	Three Months Ended March 31,
		2022		2021
Operating lease cost (a)	Cost of sales, exclusive of depreciation and amortization	$	1,164	$	1,049
Operating lease cost (a)	Selling, general and administrative	13		34
Total lease cost		$	1,177	$	1,083

(a) Short-term lease costs were approximately $0.2 million and $0.2 million for the three months ended March 31, 2022 and 2021, respectively.

The Company had no variable lease expense, as defined by ASC 842, during the periods.

($ in thousands)	Classification on the Condensed Consolidated Balance Sheets	March 31, 2022		December 31, 2021
Assets:
Operating	Operating lease assets	$	7,305	$	8,170
Total lease right-of-use assets, net		$	7,305	$	8,170
Liabilities:
Current:
Operating	Current portion of operating lease liabilities	$	3,085	$	3,227
Noncurrent:
Operating	Operating lease liabilities	4,202		4,923
Total lease liabilities		$	7,287	$	8,150

	Three Months Ended March 31,
($ in thousands)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	948	$	903
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	—	$	19

	March 31, 2022		March 31, 2021
Weighted-average remaining lease term (in years):
Operating leases	2.9		3.5
Weighted-average discount rate:
Operating leases	4.5	%	4.5	%

Most of the Company’s lease contracts do not provide a readily determinable implicit rate. For these contracts, the Company’s estimated incremental borrowing rate is based on information available at the inception of the lease.

As of March 31, 2022, maturities of lease liabilities were as follows:
($ in thousands)	Operating Leases
2022	$	2,563
2023	2,619
2024	1,298
2025	1,123
2026	149
Total lease payments	$	7,752
Less: Interest	465
Total lease obligations	$	7,287