Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

Leases

We lease certain office space, manufacturing facilities, warehouses, land, and equipment. Our leases have remaining terms ranging from 1 to 12 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 in 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	December 31, 2019
Assets:
Operating	Operating lease assets	$	32,009
Finance	Property, plant and equipment, net	1,135
Total lease assets		$	33,144
Liabilities:
Current:
Operating	Accrued liabilities	$	6,105
Finance	Current debt	287
Noncurrent:
Operating	Noncurrent operating lease liabilities	$	26,946
Finance	Long-term debt, less current portion	829
Total lease liabilities		$	34,167

Total operating lease expenses were $30.1 million for 2019, of which $19.5 million related to short-term leases and $10.6 million related to leases recognized in the balance sheet. Total operating lease expenses were $27.4 million and $23.9 million for 2018 and 2017, respectively. Total operating lease expenses approximate cash paid during each 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 December 31, 2019 is as follows:

(In thousands)	Operating Leases		Finance Leases		Total
2020	$	7,528	$	330	$	7,858
2021	5,932		329		6,261
2022	4,351		329		4,680
2023	3,199		221		3,420
2024	2,760		—		2,760
Thereafter	17,165		—		17,165
Total lease payments	40,935		1,209		42,144
Less: Interest	7,884		93		7,977
Present value of lease liabilities	$	33,051	$	1,116	$	34,167

During 2019, we entered into $12.1 million of new operating lease liabilities in exchange for leased assets.

Lease Term and Discount Rate	December 31, 2019
Weighted-average remaining lease term (years)
Operating leases	8.5
Finance leases	3.7
Weighted-average discount rate
Operating leases	4.8	%
Finance leases	4.5	%

As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting guidance, future minimum payments under non-cancelable operating leases at December 31, 2018, with initial or remaining terms in excess of one year are included in the table below. Future minimum payments under capital leases were not significant.

(In thousands)
2019	$	9,112
2020	5,707
2021	4,630
2022	3,816
2023	3,144
Thereafter	4,507
	$	30,916

Leases

Leases

We lease certain office space, manufacturing facilities, warehouses, land, and equipment. Our leases have remaining terms ranging from 1 to 12 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 in 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	December 31, 2019
Assets:
Operating	Operating lease assets	$	32,009
Finance	Property, plant and equipment, net	1,135
Total lease assets		$	33,144
Liabilities:
Current:
Operating	Accrued liabilities	$	6,105
Finance	Current debt	287
Noncurrent:
Operating	Noncurrent operating lease liabilities	$	26,946
Finance	Long-term debt, less current portion	829
Total lease liabilities		$	34,167

Total operating lease expenses were $30.1 million for 2019, of which $19.5 million related to short-term leases and $10.6 million related to leases recognized in the balance sheet. Total operating lease expenses were $27.4 million and $23.9 million for 2018 and 2017, respectively. Total operating lease expenses approximate cash paid during each 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 December 31, 2019 is as follows:

(In thousands)	Operating Leases		Finance Leases		Total
2020	$	7,528	$	330	$	7,858
2021	5,932		329		6,261
2022	4,351		329		4,680
2023	3,199		221		3,420
2024	2,760		—		2,760
Thereafter	17,165		—		17,165
Total lease payments	40,935		1,209		42,144
Less: Interest	7,884		93		7,977
Present value of lease liabilities	$	33,051	$	1,116	$	34,167

During 2019, we entered into $12.1 million of new operating lease liabilities in exchange for leased assets.

Lease Term and Discount Rate	December 31, 2019
Weighted-average remaining lease term (years)
Operating leases	8.5
Finance leases	3.7
Weighted-average discount rate
Operating leases	4.8	%
Finance leases	4.5	%

As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting guidance, future minimum payments under non-cancelable operating leases at December 31, 2018, with initial or remaining terms in excess of one year are included in the table below. Future minimum payments under capital leases were not significant.

(In thousands)
2019	$	9,112
2020	5,707
2021	4,630
2022	3,816
2023	3,144
Thereafter	4,507
	$	30,916