NOTE 7 – LEASE COMMITMENTS

We lease certain warehouse, plant and office facilities as well as certain equipment under noncancelable operating and finance leases expiring at various dates through the year 2028. Most of the operating leases contain renewal options and certain leases include options to purchase the related asset during or at the end of the lease term.

Amortization expense related to finance leases is included in depreciation expense while rent expense related to operating leases is included within cost of sales and selling research & development and administrative expenses (“SG&A”). Rent expense related to operating leases (including taxes, insurance and maintenance when included in the rent) amounted to $8.1 million in the first quarter of 2018 under the old lease accounting standard.

The components of lease expense for the current period were as follows:


Three Months Ended March 31,	2019
Operating lease cost	$	6,004

Finance lease cost:
Amortization of right-of-use assets	$	872
Interest on lease liabilities		315
Total finance lease cost	$	1,187

Short-term lease and variable lease costs	$	1,942

Supplemental cash flow information related to leases was as follows:


Three Months Ended March 31,	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,469
Operating cash flows from finance leases		243
Financing cash flows from finance leases		1,140

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	4,515
Finance leases		10,697

Supplemental balance sheet information related to leases was as follows:


	March 31, 2019
Operating Leases
Operating lease right-of-use assets	$	82,099

Accounts payable and accrued liabilities	$	15,935
Operating lease liabilities		64,592
Total operating lease liabilities	$	80,527

Finance Leases
Property, plant and equipment, gross	$	31,735
Accumulated depreciation		(1,095)
Property, plant and equipment, net	$	30,640

Current maturities of long-term obligations, net of unamortized debt issuance cost	$	3,389
Long-term obligations, net of unamortized debt issuance cost		20,412
Total finance lease liabilities	$	23,801

Weighted Average Remaining Lease Term (in years)
Operating leases		6.4
Finance leases		7.3

Weighted Average Discount Rate
Operating leases		4.92	%
Finance leases		5.66	%

Maturities of lease liabilities as of March 31, 2019, were as follows:


	Operating		Finance
	Leases		Leases
Year 1	$	19,988	$	4,605
Year 2		16,408		3,704
Year 3		12,897		3,087
Year 4		10,467		2,200
Year 5		8,586		1,769
Thereafter		26,358		16,472
Total lease payments		94,704		31,837
Less imputed interest		(14,177)		(8,036)
Total	$	80,527	$	23,801

Maturities of lease liabilities as of December 31, 2018 under the old lease accounting standard were as follows:


	Operating		Capital
	Leases		Leases
Year 1	$	26,512	$	1,828
Year 2		21,386		1,653
Year 3		16,529		1,546
Year 4		12,549		1,160
Year 5		10,225		880
Thereafter		21,932		3,827
Total lease payments	$	109,133		10,894
Less imputed interest				(2,541)
Present value of future lease payments			$	8,353

As of March 31, 2019, we have additional operating and finance leases, primarily for buildings, that have not yet commenced of $4.0 million. These operating and finance leases will commence in years 2019 and 2020 with lease terms of 3 to 10 years.