LEASES

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

LEASES

LEASES

Leases as Lessor

The components of lease income were as follows:

	Three months ended June 30,			Six months ended June 30,
	2019		2018	2019		2018
	(In thousands)
Operating leases
Lease income related to lease payments	$	374,550	335,330	$	734,859	669,697
Lease income related to commercial rental (1)	239,068		220,143	458,240		414,609
Sales type leases
Interest income related to net investment in leases	10,432		9,723	21,888		19,520
Variable lease income excluding commercial rental (1)	58,409		56,406	113,848		108,633

————————————

(1) Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% to 25% of total commercial rental income based on management's internal estimates.

The components of net investment in sales-type leases were as follows:

	June 30, 2019		December 31, 2018
	(In thousands)
Net investment in the lease — lease payment receivable	$	526,002	505,057
Net investment in the lease — unguaranteed residual value in assets	48,617		46,209
	$	574,619	551,266

————————————

Note: The net investment in the sales-type lease shown above are included in "Receivables, net" and "Sales-type leases and other assets" in the Consolidated Condensed Balance Sheets.

Maturities of sales-type lease receivables were as follows:

	June 30, 2019			December 31, 2018
	(In thousands)
2019 (remaining six months ending December 31, 2019)	$	71,381		133,557
2020	151,558			136,924
2021	128,020			114,983
2022	100,502			85,146
2023	67,684			52,161
Thereafter	109,911			78,935
Total undiscounted cash flows	629,056			601,706
Present value of lease payments (recognized as lease receivables)	(526,002		)	(505,057	)
Difference between undiscounted cash flows and discounted cash flows	$	103,054		96,649

Maturities of operating lease payments were as follows:

	June 30, 2019		December 31, 2018
	(In thousands)
2019 (remaining six months ending December 31, 2019)	$	664,943	1,159,851
2020	1,119,707		892,721
2021	861,960		646,008
2022	593,681		421,050
2023	387,060		249,255
Thereafter	389,575		203,632
Total undiscounted cash flows	$	4,016,926	3,572,517

Leases as Lessee

The components of lease expense were as follows:

		Three months ended June 30,					Six months ended June 30,
	Classification	2019			2018		2019			2018
		(In thousands)
Finance lease cost
Amortization of right-of-use assets	Other operating expenses, SG&A	$	3,312		3,432		$	6,522		6,982
Interest on lease liabilities	Interest expense	635			600		1,278			1,197
Operating lease cost	Other operating expenses, SG&A	23,638			21,756		46,856			41,443
Short-term lease and other	Other operating expenses, SG&A	2,965			831		4,089			1,813
Variable lease cost	Other operating expenses, SG&A	2,584			2,092		5,600			4,445
Sublease income	Cost of lease & related maintenance and rental, cost of services	(5,686		)	(6,196	)	(11,510		)	(12,560	)
Total lease cost		$	27,448		22,515		$	52,835		43,320

Supplemental cash flow information related to leases was as follows:

	Six months ended June 30,
	2019		2018
	(In thousands)
Cash paid for amounts included in measurement of liabilities
Operating cash flows from finance leases	$	1,278	1,197
Operating cash flows from operating leases	46,438		40,885
Financing cash flows from finance leases	10,648		8,415
Right-of-use assets obtained in exchange for lease obligations:
Finance leases	6,633		9,906
Operating leases	40,911		52,714

Supplemental balance sheet information relates to leases was as follows:

	Classification	June 30, 2019		December 31, 2018
		(In thousands)
Assets
Operating lease right-of-use assets	Sales-type leases and other assets	$	201,717	203,834
Finance lease assets	Operating property and equipment, net and revenue earning equipment, net	37,060		41,647
Total leased assets		$	238,777	245,481
Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	71,687	73,422
Finance	Short-term debt and current portion of long-term debt	11,070		14,543
Noncurrent
Operating	Other non-current liabilities	137,647		137,384
Finance	Long-term debt	33,283		32,909
Total lease liabilities		$	253,687	258,258

	June 30, 2019		December 31, 2018
	(In thousands)
Weighted-average remaining lease term
Operating	4 years		4 years
Finance	7 years		7 years
Weighted-average discount rate
Operating	3.8	%	3.7	%
Finance	8.0	%	8.0	%

Maturities of operating and finance lease liabilities were as follows:

	Operating Leases			Finance Leases		Total
	(In thousands)
2019 (remaining six months ending December 31, 2019)	$	42,116		7,239		49,355
2020	65,810			11,465		77,275
2021	46,334			9,720		56,054
2022	33,184			7,007		40,191
2023	16,897			4,601		21,498
Thereafter	21,354			13,703		35,057
Total lease payments	225,695			53,735		279,430
Less: Imputed Interest	(16,361		)	(9,382	)	(25,743	)
Present value of lease liabilities	$	209,334		44,353		253,687

As of June 30, 2019, we have entered into additional facility and equipment operating leases that have not yet commenced of $7 million and $3 million, respectively. The operating leases will commence in 2019 with lease terms of generally 3 to 5 years.

LEASES

LEASES

Leases as Lessor

The components of lease income were as follows:

	Three months ended June 30,			Six months ended June 30,
	2019		2018	2019		2018
	(In thousands)
Operating leases
Lease income related to lease payments	$	374,550	335,330	$	734,859	669,697
Lease income related to commercial rental (1)	239,068		220,143	458,240		414,609
Sales type leases
Interest income related to net investment in leases	10,432		9,723	21,888		19,520
Variable lease income excluding commercial rental (1)	58,409		56,406	113,848		108,633

————————————

(1) Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% to 25% of total commercial rental income based on management's internal estimates.

The components of net investment in sales-type leases were as follows:

	June 30, 2019		December 31, 2018
	(In thousands)
Net investment in the lease — lease payment receivable	$	526,002	505,057
Net investment in the lease — unguaranteed residual value in assets	48,617		46,209
	$	574,619	551,266

————————————

Note: The net investment in the sales-type lease shown above are included in "Receivables, net" and "Sales-type leases and other assets" in the Consolidated Condensed Balance Sheets.

Maturities of sales-type lease receivables were as follows:

	June 30, 2019			December 31, 2018
	(In thousands)
2019 (remaining six months ending December 31, 2019)	$	71,381		133,557
2020	151,558			136,924
2021	128,020			114,983
2022	100,502			85,146
2023	67,684			52,161
Thereafter	109,911			78,935
Total undiscounted cash flows	629,056			601,706
Present value of lease payments (recognized as lease receivables)	(526,002		)	(505,057	)
Difference between undiscounted cash flows and discounted cash flows	$	103,054		96,649

Maturities of operating lease payments were as follows:

	June 30, 2019		December 31, 2018
	(In thousands)
2019 (remaining six months ending December 31, 2019)	$	664,943	1,159,851
2020	1,119,707		892,721
2021	861,960		646,008
2022	593,681		421,050
2023	387,060		249,255
Thereafter	389,575		203,632
Total undiscounted cash flows	$	4,016,926	3,572,517

Leases as Lessee

The components of lease expense were as follows:

		Three months ended June 30,					Six months ended June 30,
	Classification	2019			2018		2019			2018
		(In thousands)
Finance lease cost
Amortization of right-of-use assets	Other operating expenses, SG&A	$	3,312		3,432		$	6,522		6,982
Interest on lease liabilities	Interest expense	635			600		1,278			1,197
Operating lease cost	Other operating expenses, SG&A	23,638			21,756		46,856			41,443
Short-term lease and other	Other operating expenses, SG&A	2,965			831		4,089			1,813
Variable lease cost	Other operating expenses, SG&A	2,584			2,092		5,600			4,445
Sublease income	Cost of lease & related maintenance and rental, cost of services	(5,686		)	(6,196	)	(11,510		)	(12,560	)
Total lease cost		$	27,448		22,515		$	52,835		43,320

Supplemental cash flow information related to leases was as follows:

	Six months ended June 30,
	2019		2018
	(In thousands)
Cash paid for amounts included in measurement of liabilities
Operating cash flows from finance leases	$	1,278	1,197
Operating cash flows from operating leases	46,438		40,885
Financing cash flows from finance leases	10,648		8,415
Right-of-use assets obtained in exchange for lease obligations:
Finance leases	6,633		9,906
Operating leases	40,911		52,714

Supplemental balance sheet information relates to leases was as follows:

	Classification	June 30, 2019		December 31, 2018
		(In thousands)
Assets
Operating lease right-of-use assets	Sales-type leases and other assets	$	201,717	203,834
Finance lease assets	Operating property and equipment, net and revenue earning equipment, net	37,060		41,647
Total leased assets		$	238,777	245,481
Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	71,687	73,422
Finance	Short-term debt and current portion of long-term debt	11,070		14,543
Noncurrent
Operating	Other non-current liabilities	137,647		137,384
Finance	Long-term debt	33,283		32,909
Total lease liabilities		$	253,687	258,258

	June 30, 2019		December 31, 2018
	(In thousands)
Weighted-average remaining lease term
Operating	4 years		4 years
Finance	7 years		7 years
Weighted-average discount rate
Operating	3.8	%	3.7	%
Finance	8.0	%	8.0	%

Maturities of operating and finance lease liabilities were as follows:

	Operating Leases			Finance Leases		Total
	(In thousands)
2019 (remaining six months ending December 31, 2019)	$	42,116		7,239		49,355
2020	65,810			11,465		77,275
2021	46,334			9,720		56,054
2022	33,184			7,007		40,191
2023	16,897			4,601		21,498
Thereafter	21,354			13,703		35,057
Total lease payments	225,695			53,735		279,430
Less: Imputed Interest	(16,361		)	(9,382	)	(25,743	)
Present value of lease liabilities	$	209,334		44,353		253,687

As of June 30, 2019, we have entered into additional facility and equipment operating leases that have not yet commenced of $7 million and $3 million, respectively. The operating leases will commence in 2019 with lease terms of generally 3 to 5 years.

LEASES

LEASES

Leases as Lessor

The components of lease income were as follows:

	Three months ended June 30,			Six months ended June 30,
	2019		2018	2019		2018
	(In thousands)
Operating leases
Lease income related to lease payments	$	374,550	335,330	$	734,859	669,697
Lease income related to commercial rental (1)	239,068		220,143	458,240		414,609
Sales type leases
Interest income related to net investment in leases	10,432		9,723	21,888		19,520
Variable lease income excluding commercial rental (1)	58,409		56,406	113,848		108,633

————————————

(1) Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% to 25% of total commercial rental income based on management's internal estimates.

The components of net investment in sales-type leases were as follows:

	June 30, 2019		December 31, 2018
	(In thousands)
Net investment in the lease — lease payment receivable	$	526,002	505,057
Net investment in the lease — unguaranteed residual value in assets	48,617		46,209
	$	574,619	551,266

————————————

Note: The net investment in the sales-type lease shown above are included in "Receivables, net" and "Sales-type leases and other assets" in the Consolidated Condensed Balance Sheets.

Maturities of sales-type lease receivables were as follows:

	June 30, 2019			December 31, 2018
	(In thousands)
2019 (remaining six months ending December 31, 2019)	$	71,381		133,557
2020	151,558			136,924
2021	128,020			114,983
2022	100,502			85,146
2023	67,684			52,161
Thereafter	109,911			78,935
Total undiscounted cash flows	629,056			601,706
Present value of lease payments (recognized as lease receivables)	(526,002		)	(505,057	)
Difference between undiscounted cash flows and discounted cash flows	$	103,054		96,649

Maturities of operating lease payments were as follows:

	June 30, 2019		December 31, 2018
	(In thousands)
2019 (remaining six months ending December 31, 2019)	$	664,943	1,159,851
2020	1,119,707		892,721
2021	861,960		646,008
2022	593,681		421,050
2023	387,060		249,255
Thereafter	389,575		203,632
Total undiscounted cash flows	$	4,016,926	3,572,517

Leases as Lessee

The components of lease expense were as follows:

		Three months ended June 30,					Six months ended June 30,
	Classification	2019			2018		2019			2018
		(In thousands)
Finance lease cost
Amortization of right-of-use assets	Other operating expenses, SG&A	$	3,312		3,432		$	6,522		6,982
Interest on lease liabilities	Interest expense	635			600		1,278			1,197
Operating lease cost	Other operating expenses, SG&A	23,638			21,756		46,856			41,443
Short-term lease and other	Other operating expenses, SG&A	2,965			831		4,089			1,813
Variable lease cost	Other operating expenses, SG&A	2,584			2,092		5,600			4,445
Sublease income	Cost of lease & related maintenance and rental, cost of services	(5,686		)	(6,196	)	(11,510		)	(12,560	)
Total lease cost		$	27,448		22,515		$	52,835		43,320

Supplemental cash flow information related to leases was as follows:

	Six months ended June 30,
	2019		2018
	(In thousands)
Cash paid for amounts included in measurement of liabilities
Operating cash flows from finance leases	$	1,278	1,197
Operating cash flows from operating leases	46,438		40,885
Financing cash flows from finance leases	10,648		8,415
Right-of-use assets obtained in exchange for lease obligations:
Finance leases	6,633		9,906
Operating leases	40,911		52,714

Supplemental balance sheet information relates to leases was as follows:

	Classification	June 30, 2019		December 31, 2018
		(In thousands)
Assets
Operating lease right-of-use assets	Sales-type leases and other assets	$	201,717	203,834
Finance lease assets	Operating property and equipment, net and revenue earning equipment, net	37,060		41,647
Total leased assets		$	238,777	245,481
Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	71,687	73,422
Finance	Short-term debt and current portion of long-term debt	11,070		14,543
Noncurrent
Operating	Other non-current liabilities	137,647		137,384
Finance	Long-term debt	33,283		32,909
Total lease liabilities		$	253,687	258,258

	June 30, 2019		December 31, 2018
	(In thousands)
Weighted-average remaining lease term
Operating	4 years		4 years
Finance	7 years		7 years
Weighted-average discount rate
Operating	3.8	%	3.7	%
Finance	8.0	%	8.0	%

Maturities of operating and finance lease liabilities were as follows:

	Operating Leases			Finance Leases		Total
	(In thousands)
2019 (remaining six months ending December 31, 2019)	$	42,116		7,239		49,355
2020	65,810			11,465		77,275
2021	46,334			9,720		56,054
2022	33,184			7,007		40,191
2023	16,897			4,601		21,498
Thereafter	21,354			13,703		35,057
Total lease payments	225,695			53,735		279,430
Less: Imputed Interest	(16,361		)	(9,382	)	(25,743	)
Present value of lease liabilities	$	209,334		44,353		253,687

As of June 30, 2019, we have entered into additional facility and equipment operating leases that have not yet commenced of $7 million and $3 million, respectively. The operating leases will commence in 2019 with lease terms of generally 3 to 5 years.

LEASES

LEASES

Leases as Lessor

The components of lease income were as follows:

	Three months ended June 30,			Six months ended June 30,
	2019		2018	2019		2018
	(In thousands)
Operating leases
Lease income related to lease payments	$	374,550	335,330	$	734,859	669,697
Lease income related to commercial rental (1)	239,068		220,143	458,240		414,609
Sales type leases
Interest income related to net investment in leases	10,432		9,723	21,888		19,520
Variable lease income excluding commercial rental (1)	58,409		56,406	113,848		108,633

————————————

(1) Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% to 25% of total commercial rental income based on management's internal estimates.

The components of net investment in sales-type leases were as follows:

	June 30, 2019		December 31, 2018
	(In thousands)
Net investment in the lease — lease payment receivable	$	526,002	505,057
Net investment in the lease — unguaranteed residual value in assets	48,617		46,209
	$	574,619	551,266

————————————

Note: The net investment in the sales-type lease shown above are included in "Receivables, net" and "Sales-type leases and other assets" in the Consolidated Condensed Balance Sheets.

Maturities of sales-type lease receivables were as follows:

	June 30, 2019			December 31, 2018
	(In thousands)
2019 (remaining six months ending December 31, 2019)	$	71,381		133,557
2020	151,558			136,924
2021	128,020			114,983
2022	100,502			85,146
2023	67,684			52,161
Thereafter	109,911			78,935
Total undiscounted cash flows	629,056			601,706
Present value of lease payments (recognized as lease receivables)	(526,002		)	(505,057	)
Difference between undiscounted cash flows and discounted cash flows	$	103,054		96,649

Maturities of operating lease payments were as follows:

	June 30, 2019		December 31, 2018
	(In thousands)
2019 (remaining six months ending December 31, 2019)	$	664,943	1,159,851
2020	1,119,707		892,721
2021	861,960		646,008
2022	593,681		421,050
2023	387,060		249,255
Thereafter	389,575		203,632
Total undiscounted cash flows	$	4,016,926	3,572,517

Leases as Lessee

The components of lease expense were as follows:

		Three months ended June 30,					Six months ended June 30,
	Classification	2019			2018		2019			2018
		(In thousands)
Finance lease cost
Amortization of right-of-use assets	Other operating expenses, SG&A	$	3,312		3,432		$	6,522		6,982
Interest on lease liabilities	Interest expense	635			600		1,278			1,197
Operating lease cost	Other operating expenses, SG&A	23,638			21,756		46,856			41,443
Short-term lease and other	Other operating expenses, SG&A	2,965			831		4,089			1,813
Variable lease cost	Other operating expenses, SG&A	2,584			2,092		5,600			4,445
Sublease income	Cost of lease & related maintenance and rental, cost of services	(5,686		)	(6,196	)	(11,510		)	(12,560	)
Total lease cost		$	27,448		22,515		$	52,835		43,320

Supplemental cash flow information related to leases was as follows:

	Six months ended June 30,
	2019		2018
	(In thousands)
Cash paid for amounts included in measurement of liabilities
Operating cash flows from finance leases	$	1,278	1,197
Operating cash flows from operating leases	46,438		40,885
Financing cash flows from finance leases	10,648		8,415
Right-of-use assets obtained in exchange for lease obligations:
Finance leases	6,633		9,906
Operating leases	40,911		52,714

Supplemental balance sheet information relates to leases was as follows:

	Classification	June 30, 2019		December 31, 2018
		(In thousands)
Assets
Operating lease right-of-use assets	Sales-type leases and other assets	$	201,717	203,834
Finance lease assets	Operating property and equipment, net and revenue earning equipment, net	37,060		41,647
Total leased assets		$	238,777	245,481
Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	71,687	73,422
Finance	Short-term debt and current portion of long-term debt	11,070		14,543
Noncurrent
Operating	Other non-current liabilities	137,647		137,384
Finance	Long-term debt	33,283		32,909
Total lease liabilities		$	253,687	258,258

	June 30, 2019		December 31, 2018
	(In thousands)
Weighted-average remaining lease term
Operating	4 years		4 years
Finance	7 years		7 years
Weighted-average discount rate
Operating	3.8	%	3.7	%
Finance	8.0	%	8.0	%

Maturities of operating and finance lease liabilities were as follows:

	Operating Leases			Finance Leases		Total
	(In thousands)
2019 (remaining six months ending December 31, 2019)	$	42,116		7,239		49,355
2020	65,810			11,465		77,275
2021	46,334			9,720		56,054
2022	33,184			7,007		40,191
2023	16,897			4,601		21,498
Thereafter	21,354			13,703		35,057
Total lease payments	225,695			53,735		279,430
Less: Imputed Interest	(16,361		)	(9,382	)	(25,743	)
Present value of lease liabilities	$	209,334		44,353		253,687

As of June 30, 2019, we have entered into additional facility and equipment operating leases that have not yet commenced of $7 million and $3 million, respectively. The operating leases will commence in 2019 with lease terms of generally 3 to 5 years.