Leases

6 Months Ended

Jun. 30, 2019

The Company determines if an arrangement is a lease at inception. Operating leases are included in other assets, other current liabilities, and pension and other long-term liabilities on the consolidated balance sheets. The Company does not have any finance leases at June 30, 2019.

Operating lease right-of-use assets ("ROU assets") represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of minimum fixed lease payments over the lease term. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. ROU assets also include prepaid lease payments made prior to commencement of the lease plus initial capitalized direct costs and exclude tenant improvement allowances. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense for minimum fixed lease payments is recognized on a straight-line basis over the lease term.

The Company has elected to apply the short-term lease exemption in accordance with guidance, and therefore, short-term leases (leases with a term of twelve months or less) are not recorded on the balance sheet. The Company has only a small number of leases that qualify for the exemption and the amount of its remaining short-term lease commitments is not significant.

Most of the Company’s operating leases are for buildings, warehouses and office space. These leases have remaining lease terms of approximately one year to ten years.

The components of lease expense was as follows (in thousands):



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019

Operating lease expense	$	2,837	$	5,472
Short-term lease expense	327		573
Variable lease expense	602		1,116
Total lease expense	$	3,766	$	7,161

Supplemental cash flow information related to operating leases (in thousands):



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,761	$	5,183
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	7,086	$	7,386

Supplemental balance sheet information related to operating leases (in thousands):



	June 30, 2019
Operating lease right-of-use assets	$	33,527
Operating lease liabilities	$	37,091


Note 9.	Leases - (Continued)

As of June 30, 2019, the weighted average remaining lease term for operating leases was 5.6 years and the weighted average discount rate was 4.03% percent.

Maturities of lease liabilities as of June 30, 2019 were as follows (in thousands):



Six months ending December 31, 2019	$	4,964
2020	9,628
2021	8,693
2022	5,671
2023	3,409
2024	2,260
Thereafter	7,518
Total lease payments	42,143
Less: imputed interest	(5,052		)
Present value of lease liabilities	$	37,091

The Company's future minimum lease commitments, net of sub-lease rental income, as of December 31, 2018, under Accounting Standard Codification Topic 840, the predecessor to Topic 842, are as follows:



	Net Operating Leases
2019	$	10,561
2020	8,270
2021	7,283
2022	4,894
2023	2,934
Thereafter	5,911
Total minimum payments	$	39,853