Leases

12 Months Ended

Dec. 31, 2019

8. Leases

The Company adopted ASC Topic 842, Leases as of January 1, 2019, using the transition method per ASU No. 2018-11 issued in July 2018 wherein entities were allowed to initially apply the new leases standard at adoption date. Accordingly, all periods prior to January 1, 2019 were presented in accordance with the previous ASC Topic 840, Leases, and no retrospective adjustments were made to the comparative periods presented. Adoption of ASC Topic 842 resulted in an increase to total assets and liabilities due to the recording of operating lease ROU assets and operating lease liabilities of approximately $163 million, as of January 1, 2019. The adoption did not materially impact the Company’s Consolidated Statements of Earnings or Cash Flows. See Note 1 — Basis of Presentation for further detail on ROU assets and lease liabilities.

The components of lease costs were as follows:


	Year Ended December 31, 2019

Operating Lease Costs:
Fixed	$	52,317
Variable	6,584
Short-term	17,387
Total⁽¹⁾	$	76,288

⁽¹⁾ Finance lease cost and sublease income were immaterial.

Supplemental cash flow information related to leases was as follows:


	Year Ended December 31, 2019

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	53,450
Operating cash flows from finance leases	425
Financing cash flows from finance leases	1,915
Total	$	55,790
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	41,598
Financing leases	1,542
Total	$	43,140

Supplemental balance sheet information related to leases were as follows:


	December 31, 2019

Operating Leases
Right-of-use assets:
Other assets and deferred charges	$	155,019

Lease liabilities:
Other accrued expenses	$	41,835
Other liabilities	121,298
Total operating lease liabilities	$	163,133

Finance Leases
Right of use assets:


Property and equipment, net ⁽¹⁾	$	9,008

Lease liabilities:
Other accrued expenses	$	1,794
Other liabilities	8,078
Total financing lease liabilities	$	9,872

⁽¹⁾ Finance lease assets are recorded net of accumulated depreciation of $4,614.

The aggregate future lease payments for operating and finance leases as of December 31, 2019 were as follows:


	Operating		Finance
2020	$	45,838	$	2,199
2021	36,761		2,107
2022	26,774		1,816
2023	17,184		1,338
2024	12,966		1,133
Thereafter	40,034		2,909
Total lease payments	179,557		11,502
Less: Interest	(16,424)		(1,630)
Present value of lease liabilities	$	163,133	$	9,872

Average lease terms and discount rates were as follows:


			December 31, 2019
Weighted-average remaining lease term (years)
Operating leases			5.9
Finance leases			5.9
Weighted-average discount rate
Operating leases			3.2%
Finance leases			4.1%