Leases (Notes)

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Lessee, Operating Leases [Text Block]

Leases

Leases

        We determine if an arrangement is a lease at inception. Our operating lease assets are separately stated in operating lease right-of-use ("ROU") assets and our financing lease assets are included in other assets on our condensed consolidated balance sheets. Our lease liabilities are included in accrued liabilities, and other long-term liabilities on our condensed consolidated balance sheets. We have elected not to recognize an ROU asset and lease liability for leases with terms of twelve months or less.

        Lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. Most of our leases do not provide an implicit rate, therefore we use our incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term based on the information available at commencement date. Our lease ROU assets exclude lease incentives and initial direct costs incurred. Our lease terms include options to extend when it is reasonably certain that we will exercise that option. All of our leases have stated lease payments, which may include fixed rental increases. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

        Our leases are for corporate offices, sales and support offices, a distribution facility, device service centers and certain equipment. Our leases have original lease terms of one year to fifteen years, some of which include options to extend the leases for up to an additional five years. For all of our leases, we do not include optional periods of extension in our current lease terms for the exercise of options to extend is not reasonably certain.

        The following table presents the components of our lease cost (in thousands):

	For the three months ended June 30,				For the six months ended June 30,
	2020		2019		2020		2019
Operating lease cost	$	2,776	$	2,101	$	5,567	$	4,531
Finance lease cost - interest	26		—		32		—
Finance lease cost - amortization of ROU asset	102		—		126		—
Short-term lease cost	73		84		128		180
Total lease cost	$	2,977	$	2,185	$	5,853	$	4,711

Interest expense on our finance leases is included in other income (expense), net in our condensed consolidated statement of operations. The amortization of the operating and finance ROU asset is included in selling, general and administrative expenses in our condensed consolidated statement of operations. 

The following table presents the supplemental cash flow information related to our leases (in thousands):

	For the six months ended June 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,706	$	4,838
Operating cash flows from finance leases	$	32	$	—
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	20,175	$	1,040
Finance leases	$	2,815	$	—

        The following table presents the supplemental balance sheet information related to our operating leases (in thousands, except lease term and discount rate):

	As of June 30, 2020			As of December 31, 2019
Operating leases
Operating lease right-of-use assets	$	49,712		$	34,465
Accrued liabilities	$	8,245		$	7,362
Other long-term liabilities	44,281			28,896
Total operating lease liabilities	$	52,526		$	36,258
Weighted Average Remaining Lease Term
Operating leases	7.0 years			6.0 years
Weighted Average Discount Rate
Operating leases	5.04		%	5.57		%

The following table presents the supplemental balance sheet information related to our finance leases (in thousands, except lease term and discount rate):

	As of June 30, 2020
Financing leases
Financing lease right-of-use assets	$	2,728
Accrued liabilities	$	439
Other long-term liabilities	2,298
Total financing lease liabilities	$	2,737
Weighted Average Remaining Lease Term
Financing leases	7.3 years
Weighted Average Discount Rate
Financing leases	4.26		%

        As of June 30, 2020, the maturities of our operating and financing lease liabilities for each of the next five years is approximately (in thousands):

	Operating Leases		Finance Leases
Remainder of 2020	$	5,260	$	272
2021	10,484		544
2022	9,563		544
2023	8,649		544
2024	8,214		264
2025	4,937		189
Thereafter	15,039		806
Total Lease Payments	62,146		3,163
Less imputed interest	(9,620)		(426)
Total	$	52,526	$	2,737