Leases

9 Months Ended

Sep. 30, 2019

NOTE 5 – LEASES

The Company has operating leases for facilities and equipment which have remaining terms ranging from 1 to 9 years. The leases may include options to extend the lease periods for up to 5 years at rates approximating market rates and/or options to terminate the leases within 1 year. The leases may include a residual value guarantee or a responsibility to return the property to its original state of use. Certain leases contain provisions that provide for rental increases based on consumer price indices. The change in rent expense resulting from changes in these indices are included within variable rent.

Operating leases consisted of the following at September 30, 2019:

Real estate facilities	$	162,873
Office equipment		1,401
Other		747
		165,021
Amortization of right-of-use assets		(26,865	)
Total operating lease right-of-use assets	$	138,156

Rent expense is recognized on a straight-line basis over the lease term. Rent expense consists of the following:

	Three Months Ended			Nine Months Ended
	September 30, 2019			September 30, 2019
Operating lease costs	$	9,256		$	26,762
Short-term lease costs		552			1,555
Variable lease costs		(180	)		4
Total rent expense		9,628			28,321

Future minimum lease payments under non-cancellable leases as of September 30, 2019 were as follows:

September 30, 2020	$	35,388
September 30, 2021		37,142
September 30, 2022		35,323
September 30, 2023		21,879
September 30, 2024		15,642
Thereafter		26,478
Total future minimum lease payments		171,852
Less: Interest		(16,053	)
Total operating lease liabilities	$	155,799

Operating lease liabilities - current	$	30,935
Operating lease liabilities - non-current		124,864
Total operating lease liabilities	$	155,799

Other information related to operating leases is as follows:

	Nine Months Ended
	September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	27,772
Right-of-use assets obtained in exchange for new operating lease liabilities	$	28,763
Weighted-average remaining lease term - operating leases		5.3
Weighted-average discount rate - operating leases		3.7	%

At September 30, 2019, the Company had additional operating leases that have not yet commenced of $1.3 million. Such operating leases will commence within the next year, with lease terms of 1 year to 3 years.