Leases

6 Months Ended

Jun. 30, 2020

14.Leases

Operating leases and finance leases are included in the Condensed Consolidated Balance Sheets as follows:

	Classification	June 30, 2020		December 31, 2019
		(in thousands)
Lease assets
Operating right-of-use assets, net	Assets	$	145,753	$	158,489
Finance right-of-use assets, net	Property, plant, and equipment, net		4,478		11,083
Total lease assets		$	150,231	$	169,572
Lease liabilities
Operating lease liabilities, current	Current liabilities	$	1,375	$	63,773
Operating lease liabilities, non-current	Liabilities		3,754		272,378
Finance lease liabilities, current	Current portion of long-term debt		526		3,496
Finance lease liabilities, non-current	Long-term debt		977		3,379
Total lease liabilities		$	6,632	$	343,026

See Note 22 for operating lease liabilities and finance lease liabilities that were reclassified to Liabilities subject to compromise in the Consolidated Balance Sheets at June 30, 2020.

Operating lease costs are recorded on a straight-line basis over the lease term. The change in operating lease costs for the six months ended June 30, 2020 when compared to the six months ended June 30, 2019 is due to the impairment on operating right-of-use assets recognized during the three months ended December 31, 2019. For operating leases that have been impaired, the lease liability continues to amortize using the same effective interest method as before the impairment charge and the operating right-of-use asset is amortized on a straight-line basis. Finance lease costs include amortization of the right-of-use assets and interest on lease liabilities. The components of lease costs, which were included in loss from operations in our Condensed Consolidated Statements of Loss, were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(in thousands)
Operating leases
Operating lease costs	$	10,500	$	25,767	$	21,353	$	52,959
Variable lease costs		67		655		295		806
Short-term lease costs		2,878		4,347		6,800		9,205
Total operating lease costs	$	13,445	$	30,769	$	28,448	$	62,970
Financing leases
Amortization of right-of-use asset	$	130	$	644	$	1,003	$	1,263
Interest on finance lease liabilities		61		73		130		110
Total finance lease costs	$	191	$	717	$	1,133	$	1,373

Additional information related to leases is presented as follows:

	Six Months Ended June 30,
	2020		2019
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	24,630	$	50,351
Financing cash flows from finance leases		2,293		2,452
Total cash paid	$	26,923	$	52,803

Covia Holdings Corp 10-Q