LEASE COMMITMENTS

6 Months Ended

Jun. 30, 2020

LEASE COMMITMENTS

LEASE COMMITMENTS

NOTE 7 – LEASES

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 2034. 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”).

The components of lease expense for the three and six months ended June 30, 2020 and 2019 were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Operating lease cost	$	5,841	$	5,437	$	11,095	$	11,441
Finance lease cost:
Amortization of right-of-use assets	$	906	$	1,004	$	2,105	$	1,876
Interest on lease liabilities		369		325		717		640
Total finance lease cost	$	1,275	$	1,329	$	2,822	$	2,516
Short-term lease and variable lease costs	$	2,430	$	2,328	$	4,878	$	4,270

Supplemental cash flow information related to leases was as follows:

Six Months Ended June 30,	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	11,662	$	10,249
Operating cash flows from finance leases		704		534
Financing cash flows from finance leases		2,545		2,294
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	11,371	$	9,512
Finance leases		3,127		11,622