LEASE COMMITMENTS

12 Months Ended

Dec. 31, 2019

LEASES

As discussed in Note 2, the Company adopted the provisions of ASC 842 on January 1, 2019 using the modified retrospective approach as of the effective date of ASC 842. Accordingly, financial results in periods reported prior to 2019 are unchanged.

As a result of the adoption of ASC 842, operating leases for certain warehouses, buildings, forklifts, trucks, trailers and other equipment are now recognized as right-of-use assets and corresponding short-term and long-term lease liabilities. The Company utilized a package of available practical expedients in the adoption of ASC 842, which, among them, does not require the reassessment of operating versus capital lease classification.

Leases with an initial term of 12 months or less are not recorded on the balance sheet and expense related to these short term leases was immaterial for fiscal 2019. Lease and non-lease components in the fixed base rent of facility and equipment leases are included as a single component and accounted for as a lease. Pursuant to ASC 842, the Company elected to use the remaining non-cancellable lease term as of January 1, 2019 in determining the lease term at the date of adoption and the corresponding incremental borrowing rate for such leases. Variable lease expense, principally related to trucks, forklifts, and index-related facility rent escalators, was immaterial for the year ended December 31, 2019. Leases have remaining lease terms of one year to eleven years. Certain leases include options to renew for an additional term. Where there is reasonable certainty to utilize a renewal option, we include the renewal option in the lease term used to calculate operating lease right-of-use assets and lease liabilities.

Lease expense, supplemental cash flow information, and other information related to leases were as follows:



	Year Ended
(thousands)	December 31, 2019
Operating lease cost	$	31,653

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	30,677

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	37,112

Balance sheet information related to leases was as follows:



(thousands, except lease term and discount rate)	December 31, 2019
Assets
Operating lease right-of-use assets	$	93,546
Liabilities
Operating lease liabilities, current portion	$	27,694
Long-term operating lease liabilities	66,467
Total lease liabilities	$	94,161



Weighted average remaining lease term, operating leases (in years)	4.2
Weighted average discount rate, operating leases	3.7	%

Maturities of operating lease liabilities were as follows at December 31, 2019:



(thousands)
2020	$	30,443
2021	24,300
2022	18,465
2023	13,481
2024	9,072
Thereafter	5,867
Total lease payments	101,628
Less imputed interest	(7,467		)
Total	$	94,161

Disclosures related to periods prior to the adoption of ASC 842:

Future minimum lease payments were as follows at December 31, 2018:



(thousands)
2019	$	29,345
2020	23,344
2021	16,165
2022	9,602
2023	5,357
Thereafter	4,883
Total	$	88,696