Commitments and Contingencies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Fleet Lease Income We serve as lessor on non-cancellable operating leases with customers who are required to pay minimum balances under an agreement for railcars that are currently being leased by us under non-cancellable operating leases. These agreements run for various terms through 2021. Under these agreements, we recognized lease income of $7.7 million, $8.8 million and $13.6 million for each of the years ended December 31, 2015, 2014 and 2013, respectively, which are recorded in "Fleet leases" in our consolidated statements of operations. We did not have any contingent rentals with respect to these periods. The following table presents future minimum lease rentals due to us under non-cancellable railcar operating leases (in thousands):
Rail Service Agreements We have rail service agreements at our terminal facilities with labor service providers that expire at various dates from 2016 through 2019. After the initial term of the agreements, the rail service contracts will continue to be in effect for consecutive one-year terms unless either party provides the other party written notice prior to end of the term. Under these agreements, we incurred approximately $7.7 million, $7.0 million and $1.9 million in service fees for the years ended December 31, 2015, 2014 and 2013, respectively, which are recorded in "Subcontracted rail services" on our consolidated statements of operations. The future minimum payments for these rail services agreements are as follows (in thousands):
Operating Leases We have non-cancellable operating leases for railroad tracks, land surfaces, and railcars that expire on various dates from 2016 through 2024. We incurred $0.4 million, $0.3 million and $0.3 million in lease expenses related to buildings, offices, tracks and land for the years ended December 31, 2015, 2014 and 2013, respectively, which are recorded in "Selling, general & administrative" in our consolidated statements of operations. We incurred fleet service expenses of $11.8 million, $8.8 million and $13.6 million for the years ended December 31, 2015, 2014 and 2013, respectively, which are recorded in "Fleet leases" on our consolidated statements of operations. The approximate amount of our future minimum lease payments under non-cancellable operating leases are as follows (in thousands):
Contingent Liabilities From time to time, we may be involved in legal, tax, regulatory and other proceedings in the ordinary course of business. We do not believe that we are currently a party to any such proceedings that will have a material adverse impact on our financial condition or results of operations. In connection with the railcar services we provide, we regularly incur cleanup and repair costs for railcars upon our return of these railcars to the lessors. We typically pass such costs through to our customers pursuant to the lease agreements we have with them. A legacy customer related to a terminal sold by USD prior to our IPO returned over 160 railcars to us in 2014, approximately 130 of which the lessors claim require additional cleaning and repair from alleged corrosion. We are currently in discussions with the lessors and our customers regarding the validity of these additional costs. We believe that our customer will ultimately be responsible for any costs associated with these returns, and USD has agreed to indemnify us to the extent that we are unable to recover any such costs from our customer. |
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