Leases

9 Months Ended

Sep. 30, 2020

LEASES

The Company’s operating leases are primarily comprised of railcars, real estate, storage tanks, autos, trailers and manufacturing/office equipment. Railcars and real estate comprise approximately 43 percent and 34 percent, respectively, of the Company’s consolidated ROU asset balance. Except for real estate, typical lease terms range from one to ten years. Real estate lease terms typically range from one to fifty years. The Company’s two principal real estate leases relate to land leases in the Philippines and Singapore.

As most of the Company’s leases do not provide an implicit borrowing rate, the Company uses its incremental borrowing rate (IBR) based on the information available at the commencement date in determining the present value of lease payments. IBRs were specifically determined for the United States, the Philippines, Singapore, Brazil and China, typically for five-year increments. The U.S. IBR was used for all other countries as the leases in these countries are not material. The total value of leases of property in the five countries identified above represents approximately 97 percent of the Company’s consolidated ROU asset balance.

(In thousands)	Three months ended September 30, 2020		Nine months ended September 30, 2020
Lease Cost
Operating lease cost	$	3,101	$	8,583
Short-term lease cost		1,105		3,488
Variable lease cost		203		802
Total lease cost	$	4,409	$	12,873
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	$	3,124	$	8,658
Right-of-use assets obtained in exchange for new operating lease liabilities		3,666		5,160


(In thousands)
Undiscounted Cash Flows:
2020 (excluding the nine months ended September 30, 2020)	$	3,072
2021		10,666
2022		8,641
2023		6,091
2024		3,602
Subsequent to 2024		17,117
Total Undiscounted Cash Flows	$	49,189
Less: Imputed interest		(9,761	)
Present value	$	39,428
Current operating lease liabilities ⁽¹⁾		9,938
Non-current operating lease liabilities		29,490
Total lease liabilities	$	39,428

(1)

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

Weighted-average remaining lease term-operating leases		8 Years
Weighted-average discount rate-operating leases		4.0%