Leases (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of balance sheet impact of leases


	June 30,		December 31,
Classification	2019		2018
	(dollars in thousands)
Right-of-Use Assets-Finance leases
Right-of-use assets	$	302,732	$	302,732
Less: Accumulated provision for depreciation		(254,868)		(252,233)
Total finance lease assets	$	47,864	$	50,499

Lease liabilities-Finance leases
Obligations under finance leases	$	78,771	$	81,730
Long-term debt and finance leases due within one year		8,421		5,462
Total finance lease liabilities	$	87,192	$	87,192


	June 30,		December 31,
Classification	2019		2018
	(dollars in thousands)
Right-of-Use Assets-Operating leases
Electric plant in service	$	4,878	$	—
Total operating lease assets	$	4,878	$	—

Lease liabilities-Operating leases
Capitalization-Other	$	2,616	$	—
Other current liabilities		2,648		—
Total operating lease liabilities	$	5,264	$	—

Schedule of lease cost


		Three months ended				Six months ended
		June 30,		June 30,		June 30,		June 30,
Lease Cost	Classification	2019		2018		2019		2018
		(dollars in thousands)
Finance lease cost:
Amortization of leased assets	Depreciation and amortization	$	1,189	$	1,049	$	2,378	$	2,099
Interest on lease liabilities	Interest expense		2,372		2,511		4,744		5,022
Operating lease cost:	Inventory(1) & production expense		883		1,230		1,766		2,460
Total leased cost		$	4,444	$	4,790	$	8,888	$	9,581

⁽¹⁾

The majority of our operating lease costs relates to our railcar leases and such costs are added to the cost of our fossil inventories and are recognized in fuel expense as the inventories are consumed.

Summary of lease terms and discount rates


	June 30,		December 31,
	2019		2018
Lease Term and Discount Rate:
Weighted-average remaining lease term (in years)
Finance leases	9.32		9.82
Operating leases	5.37		N/A

Weighted-average discount rate
Finance leases	11.05	%	11.05	%
Operating leases	4.85	%	N/A

Schedule of cash paid for amounts included in the measurement of lease liabilities


	Six months ended
	June 30,		June 30,
	2019		2018
	(dollars in thousands)
Other Information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	—	$	5,213
Operating cash flows from operating leases	$	1,840	$	—
Financing cash flows from finance leases	$	—	$	2,261
Right-of-use assets obtained in exchange for new operating lease liabilities	$	6,983	$	—

Schedule of maturities of finance and operating lease liabilities

Maturity analysis of our finance and operating lease liabilities as of June 30, 2019 is a follows:


	(dollars in thousands)
Year Ending December 31,	Finance Leases		Operating Leases		Total
2019	$	14,949	$	1,870	$	16,819
2020		14,949		1,402		16,351
2021		14,949		798		15,747
2022		14,949		608		15,557
2023		14,949		386		15,335
Thereafter		70,483		1,157		71,639
Total lease payments	$	145,228	$	6,221	$	151,448
Less: imputed interest		(58,036)		(957)		(58,993)
Present value of lease liabilities	$	87,192	$	5,264	$	92,455

Schedule of lessor's income from leases


	Three months ended				Six months ended
	June 30,				June 30,
	2019		2018		2019		2018
	(dollars in thousands)
Lease income	$	1,522	$	1,472	$	3,040	$	2,945