Leases

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Leases

6. Leases:

The Company leases its offices and warehouses, vehicles, and certain office equipment, all of which are classified as operating leases. The Company currently has no financing leases and historically has not entered into such leases. The Company determines if an arrangement is a lease at inception. Operating lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease expense is recognized by amortizing the amount recorded as an asset on a straight-line basis over the lease term.

In determining lease asset value, the Company considers fixed or variable payment terms, prepayments, incentives, maintenance, and options to extend or terminate, depending on the lease. Renewal, termination or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. The Company generally uses its incremental borrowing rate based on information available at the lease commencement date for the location in which the lease is held in determining the present value of lease payments.

As of March 31, 2019, the weighted average remaining lease term was 7.7 years and the weighted average discount rate used to determine the operating lease liability was 2.9%. For the three months ended March 31, 2019, expense related to operating leases was $1.8 million, operating lease payments included in operating cash flows totaled $1.6 million and noncash additions to operating lease assets totaled $31.8 million.

Maturities of lease liabilities subsequent to March 31, 2019 are as follows:

2019	$	4,789
2020		5,250
2021		4,507
2022		3,978
2023		3,640
Thereafter		13,060
		35,224
Less imputed interest (based on 2.9% weighted-average discount rate)		(4,280	)
	$	30,944

The Company has additional lease liabilities of $4.2 million which have not yet commenced as of March 31, 2019, and as such, have not been recognized on the Company’s consolidated balance sheet. These leases are expected to commence during the second quarter of 2019 with a terms of five years.