Leases

3 Months Ended

Mar. 31, 2019

We lease certain office space, manufacturing facilities, warehouses, land, and equipment. Our leases have remaining terms ranging from 1 to 9 years with various extension and termination options. We consider these options in determining the lease term used to establish our operating lease assets and liabilities. Lease agreements with lease and non-lease components are accounted for as a single lease component. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.

Leases consisted of the following:



(In thousands)	Balance Sheet Classification	March 31, 2019
Assets:
Operating	Operating lease assets	$	27,653
Finance	Property, plant and equipment, net	1,405
Total lease assets		$	29,058
Liabilities:
Current:
Operating	Accrued liabilities	$	6,964
Finance	Current debt	272
Noncurrent:
Operating	Noncurrent operating lease liabilities	$	21,577
Finance	Long-term debt, less current portion	1,041
Total lease liabilities		$	29,854

Total operating lease expenses were $7.1 million for the first quarter of 2019, of which $4.6 million related to short-term leases and $2.5 million related to leases recognized on the balance sheet, which approximates cash paid during the period. Amortization and interest for finance leases are not material. Operating lease expenses and amortization of leased assets for finance leases are included in either cost of revenues or selling, general and administrative expenses. Interest for finance leases is included in interest expense, net.

The maturity of lease liabilities as of March 31, 2019 is as follows:



(In thousands)	Operating Leases		Finance Leases		Total
2019 (remainder of year)	$	6,424	$	245	$	6,669
2020	5,676		327		6,003
2021	4,501		327		4,828
2022	3,699		326		4,025
2023	3,062		219		3,281
Thereafter	9,424		—		9,424
Total lease payments	32,786		1,444		34,230
Less: Interest	4,245		131		4,376
Present value of lease liabilities	$	28,541	$	1,313	$	29,854

During the first quarter of 2019, we entered into $1.4 million of new operating lease liabilities in exchange for leased assets.



Lease Term and Discount Rate	March 31, 2019
Weighted-average remaining lease term (years)
Operating leases	6.6
Finance leases	4.4
Weighted-average discount rate
Operating leases	4.3	%
Finance leases	4.6	%

Leases

Leases consisted of the following:



(In thousands)	Balance Sheet Classification	March 31, 2019
Assets:
Operating	Operating lease assets	$	27,653
Finance	Property, plant and equipment, net	1,405
Total lease assets		$	29,058
Liabilities:
Current:
Operating	Accrued liabilities	$	6,964
Finance	Current debt	272
Noncurrent:
Operating	Noncurrent operating lease liabilities	$	21,577
Finance	Long-term debt, less current portion	1,041
Total lease liabilities		$	29,854

The maturity of lease liabilities as of March 31, 2019 is as follows:



(In thousands)	Operating Leases		Finance Leases		Total
2019 (remainder of year)	$	6,424	$	245	$	6,669
2020	5,676		327		6,003
2021	4,501		327		4,828
2022	3,699		326		4,025
2023	3,062		219		3,281
Thereafter	9,424		—		9,424
Total lease payments	32,786		1,444		34,230
Less: Interest	4,245		131		4,376
Present value of lease liabilities	$	28,541	$	1,313	$	29,854

During the first quarter of 2019, we entered into $1.4 million of new operating lease liabilities in exchange for leased assets.



Lease Term and Discount Rate	March 31, 2019
Weighted-average remaining lease term (years)
Operating leases	6.6
Finance leases	4.4
Weighted-average discount rate
Operating leases	4.3	%
Finance leases	4.6	%