Leases

3 Months Ended

Mar. 31, 2019

Note 19 – Leases

The Company determines if a contract is or contains a lease at inception. The Company has entered into leases for certain facilities, vehicles and other equipment. The Company’s leases consist mainly of operating leases which expire at various dates through 2036. Variable lease payments are generally expensed as incurred and include certain index-based changes in rent, certain nonlease components, such as maintenance and other services provided by the lessor, and other charges included in the lease.

The components of lease expense for the three months ended March 31, 2019 were as follows (in thousands):

Finance lease cost:
	Amortization of right-to-use assets (included in depreciation expense)	$	178
	Interest on lease liabilities		146
Operating lease cost			4,448
Short-term lease cost			200
Variable lease cost			366
	Total lease cost	$	5,338

Other information:
	Cash paid for amounts included in the measurement of lease liabilities:
	Operating cash flows used for finance lease	$	157
	Operating cash flows used for operating leases	$	3,835
	Financing cash flows used for finance lease	$	273
	Right-to-use assets obtained in exchange for new operating lease liabilities	$	660

The lease assets and liabilities as of March 31, 2019 were as follows (in thousands):

Finance lease right-of-assets (included in other assets)	$	2,845
Operating lease right-of-use assets	$	81,159
Finance liability, current (included in current installments of long-term debt)	$	1,206
Finance lease liability, noncurrent (included in long-term debt)	$	4,668
Operating lease liability, current (included in other accrued liabilities)	$	11,889
Operating lease liability, noncurrent	$	70,859
Weighted average remaining lease term – finance leases		4.0 years
Weighted average remaining lease term – operating leases		9.57 years
Weighted average discount rate – finance leases		10.10%
Weighted average discount rate – operating leases		4.63%

Future annual minimum lease payments and finance lease commitments as of March 31, 2019 were as follows (in thousands):

		Operating			Finance
Year ending December 31,			Leases		Leases
	2019 (remaining nine months)	$	11,240	$	1,316
	2020		14,301		1,781
	2021		12,022		1,816
	2022		10,308		1,853
	2023		9,715		465
	2024 and thereafter		46,917		—
	Total minimum lease payments	$	104,503	$	7,231
	Less: imputed interest		(21,755)		(1,357)
	Present value of lease liabilities	$	82,748	$	5,874

As of March 31, 2019, the Company’s future operating leases that have not yet commenced are immaterial.

Future annual minimum lease payments and capital lease commitments in effect as of December 31, 2018 having a noncancelable term in excess of one year as determined prior to the adoption of ASU 842 were as follows (in thousands):

			Operating		Capital
Year ending December 31,			Leases		Leases
	2019	$	15,272	$	1,746
	2020		14,518		1,781
	2021		12,203		1,816
	2022		10,466		1,853
	2023		9,890		465
	Thereafter		47,868		—
	Total minimum lease payments	$	110,217	$	7,661
	Less: amount representing interest				1,514
	Present value of minimum lease payments				6,147
	Less: current installments				1,168
	Capital lease obligations, less current installments			$	4,979