Leases

9 Months Ended

Sep. 30, 2022

LEASES

Lease cost is recognized in both the Cost of Sales and Operating Expenses sections of the Condensed Consolidated Statements of Income.


(In thousands)	Three Months Ended September 30,		Nine Months Ended September 30,
	2022		2022
Lease Cost
Operating lease cost	$	3,917	$	11,968
Short-term lease cost		1,887		4,587
Variable lease cost		205		630
Total lease cost	$	6,009	$	17,185
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	$	3,903	$	11,908
Right-of-use assets obtained in exchange for new operating lease liabilities		455		4,017

The following table outlines the maturities of lease liabilities as of September 30, 2022.


(In thousands)
Undiscounted Cash Flows:
2022 (excluding the nine months ended September 30, 2022)	$	3,906
2023		13,468
2024		8,688
2025		6,299
2026		4,667
Subsequent to 2026		36,903
Total Undiscounted Cash Flows	$	73,931
Less: Imputed interest		(10,947	)
Present value	$	62,984
Current operating lease liabilities (1)		12,971
Non-current operating lease liabilities		50,013
Total lease liabilities	$	62,984

(1)

This item is included in the Accrued liabilities line on the Company’s Condensed Consolidated Balance Sheet.


Weighted-average remaining lease term-operating leases	10 years
Weighted-average discount rate-operating leases		2.9	%

As of September 30, 2022, the Company had railcars, equipment, and storage tank leases, valued at approximately $7,787,000 that had not commenced. These leases will commence between the fourth quarter of 2022 and the third quarter of 2023 with lease terms ranging 1 year to 10 years.