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Leases

12 Months Ended

Dec. 31, 2019

The Company conducts its operations using facilities leased under operating lease agreements that expire at various dates. The Company finances its use of certain motor vehicles and other equipment under various lease arrangements provided by financial institutions.

The Company has performed an evaluation of its contracts with suppliers in accordance with Topic 842 and has determined that, except for leases for office facilities, motor vehicles and other equipment as described above, none of the Company’s contracts contain a lease.

In assessment of the lease term, the Company considers the extension option as part of its lease term for those lease arrangements where the Company is reasonably certain of availing the extension option.

The lease agreements do not contain any covenant to impose any restrictions except for market-standard practice for similar lease arrangements.

Supplemental balance sheet information



	As of
	December 31, 2019
Operating Lease
Operating lease right-of-use assets	$	86,396

Operating lease liabilities - Current	$	24,148
Operating lease liabilities - Non-current	74,709
Total operating lease liabilities	$	98,857

Finance Lease
Property and equipment, gross	$	1,757
Accumulated depreciation	(1,120		)
Property and equipment, net	$	637

Finance lease liabilities - Current	$	253
Finance lease liabilities - Non-current	430
Total finance lease liabilities	$	683

During the year ended December 31, 2019, the Company performed an impairment test of its long-lived assets related to its Health Integrated business. Based on the results, the operating lease right-of-use assets carrying value exceeded its fair value. The primary factor contributing to a reduction in the fair value is the wind down of the Health Integrated business, due to an anticipated reduction to the Company's estimated future cash flows. As a result of this analysis, the Company recognized an impairment charge of $1,449 during year ended December 31, 2019, to write down the carrying value of operating lease right-of-use assets to its fair value. This impairment charge was recorded in the consolidated statements of income under "Impairment and restructuring charges". Refer to Note 24 to the consolidated financial statements for further details.

The components of lease cost, which are included in the Company's consolidated statements of income, are as follows:



Lease cost	Year ended December 31, 2019
Finance lease:
Amortization of right-of-use assets	$	255
Interest on lease liabilities	93
Operating lease^(a)	27,335
Sublease income	(146		)
Total lease cost	$	27,537

Operating lease cost for leases classified as such under Topic 840 for the years ended December 31, 2018, and 2017 was $25,573 and $24,015, respectively.

(a) Includes short-term leases, which are immaterial.

Supplemental cash flow and other information related to leases are as follows:



	Year ended December 31, 2019
Cash payments for amounts included in the measurement of lease liabilities :
Operating cash outflows for operating leases	$	24,813
Operating cash outflows for finance leases	$	93
Financing cash outflows for finance leases	$	336
Right-of-use assets obtained in exchange for new operating lease liabilities	$	36,473
Right-of-use assets obtained in exchange for new finance lease liabilities	$	506
Weighted-average remaining lease term
Finance lease	2.3 years
Operating lease	6.0 years
Weighted-average discount rate
Finance lease	9.9		%
Operating lease	7.6		%

The Company determines the incremental borrowing rate by adjusting the benchmark reference rates, applicable to the respective geographies where the leases were entered, with appropriate financing spreads and lease specific adjustments for the effects of collateral.

As of December 31, 2019, the Company has entered into an operating lease for a facility that has not yet commenced with lease liability of approximately $11,900. This operating lease will commence in January 2020 and has a lease term of 15 years.

Maturities of lease liabilities as of December 31, 2019 are as follows:



	Operating Leases		Finance Leases
2020	$	26,932	$	325
2021	23,783		251
2022	21,526		157
2023	19,381		86
2024	14,865		22
2025 and thereafter	23,983		—
Total lease payments	$	130,470	$	841
Less: Imputed interest	31,613		158
Present value of lease liabilities	$	98,857	$	683

Maturities of minimum lease payments as of December 31, 2018 are as follows:



During the next twelve months ending December 31,	Operating Leases		Capital Leases
2019	$	23,431	$	283
2020	20,039		163
2021	16,924		120
2022	14,804		58
2023	12,859		49
2024	11,114		—
2025 and thereafter	15,000		—
Total minimum lease payment	$	114,171	$	673
Less: imputed interest	NA		135
Present value of minimum lease payments	NA		538
Less: current portion	NA		223
Long term capital lease obligation	NA		$	315

Leases