Operating Leases (Notes)

9 Months Ended

Sep. 30, 2020

6. OPERATING LEASES

As of September 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 September 30, 2020, the lease terms of the U.S.-flag petroleum and chemical carriers, which are subject to subleases, have remaining durations of 24 and 71 months. The lease terms of the other vessels, facilities and equipment range in duration from 1 to 186 months.

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


	2020		2019
Operating lease expense	$	33,596	$	32,009
Short-term lease expense (lease duration of twelve months or less at lease commencement)	14,105		17,136
Sublease income	(26,216)		(24,129)
	$	21,485	$	25,016

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


Operating cash outflows from operating leases	$	33,515
Right-of-use assets obtained in exchange for operating lease liabilities	$	9,183
Weighted average remaining lease term, in years	4.8
Weighted average discount rate	4.9		%