Leases

6 Months Ended

Jun. 30, 2019

5. Leases

The Company has operating and finance leases for regional offices, manufacturing facilities, retail centers, distribution centers and certain equipment. The Company’s leases have remaining lease terms of 1 year to 15 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within 1 year. As of June 30, 2019, the weighted average remaining lease term and weighted average discount rate for operating leases was 4.1 years and 4.8%. The Company has not separately disclosed finance leases, as they are not material, either individually or in the aggregate, to the Company’s consolidated financial statements.

The components of lease expense were as follows (U.S. dollars in thousands):

	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019

Operating lease cost	$	12,417	$	25,278
Short-term lease cost		52		104
Variable lease cost		1,105		2,157
	$	13,574	$	27,539

As of June 30, 2019, the Company had $118.5 million of operating right-of-use assets on the balance sheet, along with $37.2 million and $84.1 million of operating lease liabilities in accrued expenses and long-term operating lease liabilities, respectively.

Supplemental cash flow information related to leases was as follows (U.S. dollars in thousands):

	Six Months Ended June 30, 2019

Operating cash outflow from operating leases	$	26,570
ROU assets obtained in exchange for lease obligations		140,585

Maturities of lease liabilities were as follows (U.S. dollars in thousands):

Year Ending December 31,	Operating leases

2019	$	23,632
2020		37,424
2021		30,478
2022		16,439
2023		11,574
Thereafter		15,514
Total		135,061
Less: Finance charges		13,794
Total principal liability	$	121,267

The Company has additional lease liabilities of $0.2 million which have not yet commenced as of June 30, 2019, and as such, have not been recognized on the consolidated balance sheets.

Under ASC Topic 840, minimum future operating leases and financing obligations at December 31, 2018 are as follows (U.S. dollars in thousands):

Year Ending December 31,	Operating leases		Finance leases

2019	$	39,358	$	726
2020		27,553		748
2021		20,266		757
2022		11,723		770
2023		9,950		794
Thereafter		7,628		1,148
Total minimum lease payments	$	116,478	$	4,943