Leases

9 Months Ended

Sep. 30, 2020

NOTE 10. LEASES

We have operating and finance leases for certain facilities and equipment used in operations. Our leases generally have remaining lease terms of up to 15 years. Some of our real estate operating leases contain renewal options that may be exercised, and some of our leases include options to terminate the leases within one year.

We have recognized a right-of-use asset for both operating and finance leases, and an operating lease liability that represents the present value of our obligation to make payments over the lease term. The present value of the lease payments is calculated using the incremental borrowing rate for operating and finance leases, which was determined using a portfolio approach based on the rate of interest that we would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. We use the unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate in the currency of the lease, which will be updated on a quarterly basis for measurement of new lease liabilities.

The components of lease expense were as follows:


	Three months ended				Nine months ended
	September 30,				September 30,
	2020		2019		2020		2019
Operating lease cost	$	1,546	$	1,481	$	4,372	$	4,333

Finance lease cost:
Amortization of right-of-use assets	$	76	$	67	$	216	$	203
Interest on lease obligation	39		42		116		126
Total finance lease cost	$	115	$	109	$	332	$	329

Supplemental cash flow information related to leases is as follows:


	Nine months ended
	September 30,
	2020		2019
Cash Flows from Operating Activities
Cash paid for amounts included in lease obligations
Operating cash flows from operating leases	$	3,651	$	3,338
Supplemental Lease Cash Flow Disclosures
Operating lease right-of-use assets obtained in exchange for new operating lease obligations	3,908		7,068

Supplemental balance sheet information related to leases is as follows:


	September 30, 2020			December 31, 2019
Operating Leases
Operating lease right-of-use assets	$	24,546		$	24,039

Accounts payable and accrued liabilities	$	3,483		$	3,451
Operating lease obligation	22,056			21,804
Total operating lease obligation	$	25,539		$	25,255
Finance Leases
Property, plant and equipment, at cost	$	3,485		$	3,534
Accumulated depreciation and amortization	(1,363)			(1,296)
Property, plant and equipment, net	$	2,122		$	2,238

Current portion of long-term debt	$	174		$	162
Long-term debt	1,732			1,872
Total finance lease obligation	$	1,906		$	2,034

	September 30,
	2020			2019
Weighted-Average Remaining Lease Term (years)
Operating leases	8.5			8.7
Finance leases	10.1			10.4

Weighted-Average Discount Rate
Operating leases	4.1		%	4.3		%
Finance leases	8.1		%	8.4		%

Future minimum maturities of lease obligations are as follows:


At September 30, 2020	Operating		Finance
	Leases		Leases
Remainder of 2020	$	1,226	$	99
2021	4,679		316
2022	4,372		298
2023	3,981		278
2024	3,449		258
Thereafter	13,543		1,720
Total lease payments	31,250		2,969
Less imputed interest	(5,711)		(1,063)
Total	$	25,539	$	1,906

Leases

NOTE 10. LEASES

The components of lease expense were as follows:


	Three months ended				Nine months ended
	September 30,				September 30,
	2020		2019		2020		2019
Operating lease cost	$	1,546	$	1,481	$	4,372	$	4,333

Finance lease cost:
Amortization of right-of-use assets	$	76	$	67	$	216	$	203
Interest on lease obligation	39		42		116		126
Total finance lease cost	$	115	$	109	$	332	$	329

Supplemental cash flow information related to leases is as follows:


	Nine months ended
	September 30,
	2020		2019
Cash Flows from Operating Activities
Cash paid for amounts included in lease obligations
Operating cash flows from operating leases	$	3,651	$	3,338
Supplemental Lease Cash Flow Disclosures
Operating lease right-of-use assets obtained in exchange for new operating lease obligations	3,908		7,068

Supplemental balance sheet information related to leases is as follows:


	September 30, 2020			December 31, 2019
Operating Leases
Operating lease right-of-use assets	$	24,546		$	24,039

Accounts payable and accrued liabilities	$	3,483		$	3,451
Operating lease obligation	22,056			21,804
Total operating lease obligation	$	25,539		$	25,255
Finance Leases
Property, plant and equipment, at cost	$	3,485		$	3,534
Accumulated depreciation and amortization	(1,363)			(1,296)
Property, plant and equipment, net	$	2,122		$	2,238

Current portion of long-term debt	$	174		$	162
Long-term debt	1,732			1,872
Total finance lease obligation	$	1,906		$	2,034

	September 30,
	2020			2019
Weighted-Average Remaining Lease Term (years)
Operating leases	8.5			8.7
Finance leases	10.1			10.4

Weighted-Average Discount Rate
Operating leases	4.1		%	4.3		%
Finance leases	8.1		%	8.4		%

Future minimum maturities of lease obligations are as follows:


At September 30, 2020	Operating		Finance
	Leases		Leases
Remainder of 2020	$	1,226	$	99
2021	4,679		316
2022	4,372		298
2023	3,981		278
2024	3,449		258
Thereafter	13,543		1,720
Total lease payments	31,250		2,969
Less imputed interest	(5,711)		(1,063)
Total	$	25,539	$	1,906