Quarterly report pursuant to Section 13 or 15(d)

Operating Leases (Notes)

v3.19.1
Operating Leases (Notes)
3 Months Ended
Mar. 31, 2019
Operating Leases [Abstract]  
Operating Leases
5. OPERATING LEASES
Lessee. As of March 31, 2019, the Company leases in two U.S.-flag petroleum and chemical carriers, five U.S.-flag harbor tugs, 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 March 31, 2019, the remaining lease terms of the U.S.-flag petroleum and chemical carriers, which are subject to subleases, have remaining durations from 42 to 89 months. The lease terms of the other equipment range in duration from 12 to 204 months.
As of March 31, 2019, future minimum payments for operating leases for the remainder of 2019 and the years ended December 31 were as follows (in thousands):
Remainder of 2019
$
32,030

2020
40,792

2021
36,623

2022
26,780

2023
14,835

Years subsequent to 2023
40,382

 
191,442

Interest component
(24,040
)
 
167,402

Current portion of long-term operating lease liabilities
(35,540
)
Long-term operating lease liabilities
$
131,862


For the three months ended March 31, 2019, the components of lease expense were as follows (in thousands):
 
2019
Operating lease expense
$
10,554

Short-term lease expense (lease duration of twelve months or less at lease commencement)
6,720

Sublease income
(8,225
)
 
$
9,049


For the three months ended March 31, other information related to operating leases was as follows (in thousands except weighted average data):
 
2019
Operating cash outflows from operating leases
$
10,482

Right-of-use assets obtained in exchange for operating lease liabilities
$
175,897

Weighted average remaining lease term, in years
5.7

Weighted average discount rate
4.8
%

Lessor. As of March 31, 2019, lessor arrangements with remaining terms in excess of one year included the bareboat charter of three U.S.-flag petroleum and chemical carriers and two U.S.-flag harbor tugs, the time charter of four U.S.-flag petroleum and chemical carriers, four U.S.-flag PCTCs, seven inland river towboats and one U.S.-flag offshore tug, and other non-vessel rental arrangements of certain property and equipment. As of March 31, 2019, future minimum lease revenues from these arrangements for the remainder of 2019 and in the years ended December 31 were as follows (in thousands):
 
Total Minimum Lease Revenues
 
Leased-in Obligations(1)
 
Net Minimum Lease Income
Remainder of 2019
$
110,773

 
$
(23,944
)
 
$
86,829

2020
137,257

 
(31,595
)
 
105,662

2021
104,792

 
(29,590
)
 
75,202

2022
54,374

 
(22,812
)
 
31,562

2023
34,674

 
(11,315
)
 
23,359

Years subsequent to 2023
87,375

 
(29,884
)
 
57,491

____________________
(1)
The total payments to be made under existing non-cancelable leases for the property and equipment subject to these future minimum lease revenues.
As of March 31, 2019, the major classes of owned property and equipment earning lease revenues were as follows (in thousands):
 
Historical
Cost
 
Accumulated
Depreciation
 
Net Book
Value
2019
 
 
 
 
 
Ocean Services:
 
 
 
 
 
Petroleum and chemical carriers - U.S.-flag
$
472,462

 
$
(187,296
)
 
285,166

Harbor and offshore tugs - U.S.-flag
21,440

 
(2,173
)
 
19,267

 
493,902

 
(189,469
)
 
304,433

Inland Services:
 
 
 
 


Towboats
36,236

 
(2,435
)
 
33,801

 
530,138

 
(191,904
)
 
338,234