Operating Leases (Notes)

6 Months Ended

Jun. 30, 2020

6. OPERATING LEASES

As of June 30, 2020, the Company leased-in two U.S.-flag petroleum and chemical carriers, four U.S.-flag harbor tugs, one U.S.-flag offshore tug, 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 June 30, 2020, the lease terms of the U.S.-flag petroleum and chemical carriers, which are subject to subleases, have remaining durations of 27 and 74 months. The lease terms of the other vessels, facilities and equipment range in duration from 3 to 189 months.

For the six months ended June 30, the components of lease expense were as follows (in thousands):


	2020		2019
Operating lease expense	$	22,274	$	21,239
Short-term lease expense (lease duration of twelve months or less at lease commencement)	9,354		12,143
Sublease income	(17,394)		(16,786)
	$	14,234	$	16,596

For the six months ended June 30, 2020, other information related to operating leases was as follows (in thousands except weighted average data):


Operating cash outflows from operating leases	$	22,361
Right-of-use assets obtained in exchange for operating lease liabilities	$	6,142
Weighted average remaining lease term, in years	4.9
Weighted average discount rate	4.9		%