LEASES

Lessee
We lease from third parties certain office and operation center facilities, communication tower sites, equipment, and materials storage. Our leases have remaining terms ranging from less than 1 year to 36 years, including options to extend that are reasonably certain to be exercised.
The components of lease expense for the year ended December 31 were as follows (in thousands) :
 
Income Statement Location
2019
Operating lease cost
Operations and maintenance
$
1,456

Finance lease cost:
 
 
Amortization of right-of-use asset
Depreciation, depletion and amortization
100

Interest on lease liabilities
Interest expense incurred net of amounts capitalized (including amortization of debt issuance costs, premiums and discounts)
19

Total lease cost
 
$
1,575



Supplemental balance sheet information related to leases as of December 31 was as follows (in thousands):
 
Balance Sheet Location
2019
Assets:
 
 
Operating lease assets
Other assets, non-current
$
4,629

Finance lease assets
Other assets, non-current
465

Total lease assets
 
$
5,094

 
 
 
Liabilities:
 
 
Current:
 
 
Operating leases
Accrued liabilities
$
1,179

Finance lease
Accrued liabilities
109

 
 
 
Noncurrent:
 
 
Operating leases
Other deferred credits and other liabilities
3,821

Finance lease
Other deferred credits and other liabilities
364

Total lease liabilities
 
$
5,473



Supplemental cash flow information related to leases for the year ended December 31 was as follows (in thousands):
 
2019
Cash paid included in the measurement of lease liabilities:
 
Operating cash flows from operating leases
$
1,263

Operating cash flows from finance lease
$
19

Financing cash flows from finance lease
$
93

Right-of-use assets obtained in exchange for lease obligations:
 
Operating leases
$
2,801

Finance lease
$
67



Weighted average remaining terms and discount rates related to leases as of December 31 were as follows:
 
2019
Weighted average remaining lease term (years):
 
Operating leases
8 years

Finance lease
4 years

 
 
Weighted average discount rate:
 
Operating leases
4.27
%
Finance lease
4.19
%


As of December 31, 2019, scheduled maturities of lease liabilities for future years were as follows (in thousands):
 
Operating Leases
Finance Lease
Total
2020
1,018

126

1,144

2021
865

126

991

2022
743

126

869

2023
718

126

844

2024
714

10

724

Thereafter
2,009


2,009

Total lease payments (a)
$
6,067

$
514

$
6,581

Less imputed interest
1,067

41

1,108

Present value of lease liabilities
$
5,000

$
473

$
5,473

_______________
(a)
Lease payments exclude payments to landlords for common area maintenance, real estate taxes, and insurance.


As previously disclosed in Note 14 of the Notes to the Consolidated Financial Statements in our 2018 Annual Report on Form 10-K, prior to the adoption of ASU 2016-02, Leases (Topic 842), the future minimum payments required under operating lease agreements as of December 31, 2018 were as follows (in thousands):
 
Operating Leases
2019
$
1,052

2020
464

2021
344

2022
224

2023
216

Thereafter
1,776

Total lease payments 
$
4,076


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About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.