LEASES LEASES

6 Months Ended

Jun. 30, 2019

8. LEASES

The Corporation conducts a portion of its operations from leased facilities, which include manufacturing and service facilities, administrative offices, and warehouses. In addition, the Corporation leases vehicles, machinery, and office equipment under operating leases. Our leases have remaining lease terms of 1 year to 25 years, some of which include options for renewals, escalations, or terminations.

The components of lease expense were as follows:



	Three Months Ended		Six Months Ended
(In thousands)	June 30, 2019		June 30, 2019
Operating lease cost	$	7,146	$	15,358

Finance lease cost:
Amortization of right-of-use assets	$	199	$	396
Interest on lease liabilities	125		253
Total finance lease cost	$	324	$	649

Supplemental cash flow information related to leases was as follows:



	Six Months Ended
(In thousands)	June 30, 2019
Cash used for operating activities:
Operating cash flows from operating leases	$	(15,207	)
Operating cash flows from finance leases	(253		)
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations	$	1,711

Supplemental balance sheet information related to leases was as follows:



(In thousands, except lease term and discount rate)	As of June 30, 2019
Operating Leases
Operating lease right-of-use assets, net	$	135,190

Other current liabilities	$	23,328
Long-term operating lease liability	117,789
Total operating lease liabilities	$	141,117

Finance Leases
Property, plant, and equipment	$	15,561
Accumulated depreciation	(5,014		)
Property, plant, and equipment, net	$	10,547

Other current liabilities	$	777
Other liabilities	11,431
Total finance lease liabilities	$	12,208

Weighted average remaining lease term
Operating leases	8.1 years
Finance leases	10.2 years
Weighted average discount rate
Operating leases	3.85		%
Finance leases	4.05		%

Maturities of lease liabilities were as follows:



	As of June 30, 2019
(In thousands)	Operating Leases			Finance Leases
2019	$	14,448		$	660
2020	27,560			1,342
2021	24,553			1,375
2022	18,358			1,410
2023	16,527			1,445
Thereafter	64,403			8,892
Total lease payments	$	165,849		$	15,124
Less: imputed interest	(24,732		)	(2,916		)
Total	$	141,117		$	12,208

In November 2018, the Corporation entered into a build-to-suit lease of approximately $27 million for the construction of a new facility for DRG in Charleston, South Carolina. The lease has not been reflected in the Corporation’s condensed consolidated financial statements as of June 30, 2019 as the Corporation has not yet obtained the right to control the use of the facility.