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LEASES
9 Months Ended
Sep. 30, 2019
LEASES  
LEASES

14.  LEASES

The Company leases many of its pharmacy locations, office facilities, distribution centers, and certain office equipment through noncancelable operating lease contracts. Such noncancelable operating lease contracts convey the right to control such property for a period of time in exchange for consideration.  The operating leases have initial terms ranging from three to twelve years and generally have options to extend for one or two five-year periods. Additionally, most frequently, the lease contracts include a provision for early termination after a specified time period along with payment of a termination fee. Beginning in 2019, the lease term, for accounting purposes, will include renewal option periods when it is reasonably certain that the option to extend the lease will be exercised based on the facts and circumstances at lease commencement. The lease agreements, most often, provide for rental payments that increase over the lease term based on a fixed percentage or specified amount.  Additionally, the Company, in most cases, is required to pay real estate taxes, insurance costs and other occupancy costs such as common area maintenance that vary over the lease term.  

Rent expense was $2,265 and $6,291 for the three and nine months ended September 30, 2018. The components of lease expense in the condensed consolidated statements of comprehensive loss for the three and nine months ended September 30, 2019, were as follows:

Three Months Ended

Nine Months Ended

September 30, 

September 30, 

2019

2019

Operating lease cost

    

$

1,775

    

$

5,082

Variable lease cost

218

 

1,409

Short-term lease cost

107

 

348

Total

 

$

2,100

$

6,839

Maturities of lease liabilities for each of the next five years and thereafter, including reconciliation to the lease liabilities, were as follows:

2019 (excluding the nine months ended September 30, 2019)

    

$

1,663

2020

6,218

2021

5,387

2022

 

4,612

2023

 

3,499

Thereafter

 

14,933

Total future lease payments

 

36,312

Less: imputed interest costs (a)

 

(8,208)

Lease liabilities

 

$

28,104

(a)Computed using the estimated incremental borrowing rate for each lease

Other information related to the Company's leases as of and for the nine months ended September 30, 2019 are as follows:

Cash paid for amounts included in the measurement of lease liabilities

    

 

Operating cash flows for operating leases

$

3,552

 

Weighted average remaining lease term (in years)

 

7.34

Weighted average discount rate

 

6.76

%