LEASES

3 Months Ended

Mar. 31, 2020

Right-of-Use Assets and Operating Lease Liabilities

Amounts reported in the condensed consolidated balance sheet were:


	March 31, 2020		December 31, 2019
	(in thousands)
Assets:
Right-of-use assets	$	193,070	$	182,228
Liabilities:
Current operating lease liabilities	$	50,026	$	48,585
Long-term operating lease liabilities	152,139		140,148
Total operating lease liabilities	$	202,165	$	188,733

Lease Costs and Other Information

Lease-related costs reported within ‘Cost of sales’ and ‘Selling, general and administrative expenses’ in our condensed consolidated statement of operations were:


	Three Months Ended March 31,
	2020		2019
	(in thousands)
Operating lease cost	$	14,994	$	14,930
Short-term lease cost	1,325		1,360
Variable lease cost	1,500		2,989
Total lease costs	$	17,819	$	19,279

Other information related to leases, including supplemental cash flow information, consists of:


	Three Months Ended March 31,
	2020		2019
	(in thousands)
Cash paid for operating leases	$	12,293	$	18,574
Right-of-use assets obtained in exchange for operating lease liabilities ⁽¹⁾	24,790		177,509

⁽¹⁾In the three months ended March 31, 2019, we implemented ASC 842, Leases. The previously reported amount includes $176.1 million for operating leases existing on January 1, 2019 and $1.4 million for operating leases that commenced in the first quarter of 2019.

The weighted average remaining lease term and discount rate related to our lease liabilities as of March 31, 2020 were 6.3 years and 4.7%, respectively. As of March 31, 2019, the weighted average remaining lease term and discount rate related to our lease liabilities were 5.7 years and 4.7%, respectively.

Maturities

The maturities of our operating lease liabilities were:


	As of March 31, 2020
	(in thousands)
2020 (remainder of year)	$	42,343
2021	50,196
2022	35,832
2023	26,650
2024	17,013
Thereafter	65,102
Total future minimum lease payments	237,136
Less: imputed interest	(34,971)
Total operating lease liabilities	$	202,165

Lease Commencements

In the first quarter of 2020, the lease for our new corporate headquarters and regional office commenced, the impact of which is included in the above lease disclosures. We are currently evaluating when to physically relocate our headquarters, in consideration of the continuing impacts of the COVID-19 pandemic.

Leases That Have Not Yet Commenced

As of March 31, 2020, we had significant obligations for a lease that has not yet commenced related to our new EMEA distribution center. In the fourth quarter of 2019, we entered into a lease for a new distribution center in Dordrecht, the Netherlands, which is expected to replace our existing distribution center in Rotterdam by the end of 2021. The total contractual commitment related to this lease, with payments expected to begin in January 2021 and continuing through December 2030, is approximately €21.9 million, or $24.2 million, with expected total capital investments of approximately €20.0 million, or $22.1 million, through 2021.