Operating Leases (Notes)

3 Months Ended

Mar. 31, 2020

6. OPERATING LEASES

As of March 31, 2020, the Company leased-in two U.S.-flag petroleum and chemical carriers, four U.S.-flag harbor tugs, four U.S.-flag PCTCs, 50 inland river dry-cargo barges, four inland river towboats, six inland river harbor boats and certain facilities and other equipment. The leases generally contain purchase and renewal options or rights of first refusal with respect to the sale or lease of the equipment. As of March 31, 2020, the lease terms of the U.S.-flag petroleum and chemical carriers, which are subject to subleases, have remaining durations of 30 and 77 months. The lease terms of the other vessels, facilities and equipment range in duration from 1 to 192 months.

For the three months ended March 31, the components of lease expense were as follows (in thousands):


	2020		2019
Operating lease expense	$	10,872	$	10,554
Short-term lease expense (lease duration of twelve months or less at lease commencement)	5,596		6,720
Sublease income	(8,641)		(8,225)
	$	7,827	$	9,049

For the three months ended March 31, 2020, other information related to operating leases was as follows (in thousands except weighted average data):


Operating cash outflows from operating leases	$	10,772
Right-of-use assets obtained in exchange for operating lease liabilities	$	872
Weighted average remaining lease term, in years	5.1
Weighted average discount rate	4.9		%