LEASES

12 Months Ended

Dec. 31, 2020

LEASES

LEASES

NOTE 7. LEASES

The components of lease expense for the year ended December 31, 2020 are as follows:

	Year Ended
	December 31,
	2020		2019
	(in thousands)
Operating lease costs	$	8,069	$	9,185
Finance lease costs:
Amortization of assets		20,555		13,711
Interest on lease liabilities		3,264		2,521
Total finance lease costs		23,819		16,232
Variable and short-term lease costs		2,066		989
Total lease costs	$	33,954	$	26,406

Supplemental information and balance sheet location related to leases is as follows:

	December 31, 2020			December 31, 2019
Operating leases:	(dollars in thousands)
Operating leases - right-of-use assets	$	28,154		$	11,775
Current operating lease obligations		6,838			6,050
Long-term operating lease obligations		21,690			5,812
Total operating lease liabilities	$	28,528		$	11,862
Finance leases:
Property and equipment, at cost		86,281			120,236
Accumulated amortization		(22,991)			(30,990)
Property and equipment, net	$	63,290		$	89,246
Current finance lease obligations		11,655			30,779
Long-term finance lease obligations		54,482			58,397
	$	66,137		$	89,176
Weighted average remaining lease term:		(in months)			(in months)
Operating leases		60			45
Finance leases		43			44
Weighted average discount rate:
Operating leases		4.59	%		4.03	%
Finance leases		3.73	%		3.34	%

Supplemental cash flow information related to leases is as follows:

	December 31, 2020		December 31, 2019
Cash paid for amounts included in measurement of liabilities:	(in thousands)
Operating cash flows from operating leases	$	287	$	87
Operating cash flows from finance leases		3,264		2,521
Financing cash flows from finance leases		31,519		14,016
ROU assets obtained in exchange for lease liabilities:
Operating leases	$	23,074	$	2,319
Finance leases		8,481		32,440

Maturities of lease liabilities as of the year ended December 31, 2020 are as follows:

	Finance Leases		Operating Leases
	(in thousands)
2021	$	13,894	$	7,004
2022		13,894		6,456
2023		24,711		6,192
2024		15,256		5,918
2025		4,187		5,049
Thereafter		75		1,321
Total lease payments		72,017		31,940
Less: Imputed interest		(5,880)		(3,412)
Total lease obligations		66,137		28,528
Less: Current obligations		(11,655)		(6,838)
Long-term lease obligations	$	54,482	$	21,690

OTHER COMMITMENTS

As of December 31, 2020, the Company had no noncancellable commitments for purchases.  We anticipate funding future commitments with cash flows from operating and financing activities.

RELATED PARTY LEASE

In the normal course of business, the Company leases office and shop space from a related party under a monthly operating lease.  Rent expense for this space was approximately $0.2 million for each of the years ended December 31, 2020 and 2019.  This expense is included in the “Operations and maintenance” line item in the accompanying consolidated statement of income (loss) and comprehensive income (loss).