Leases

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Leases

Leases:

We lease certain office space, buildings, transportation and equipment in various countries. The initial lease terms generally range from 1 to 30 years for real estate leases, and from 2 to 15 years for non-real estate leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term.

Many leases include options to terminate or renew, with renewal terms that can extend the lease term from 1 to 50 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following table provides details of our lease contracts for the three months ended March 31, 2019 (in thousands):

	Three Months Ended
	March 31, 2019
Operating lease cost	$	9,421
Finance lease cost:
Amortization of right of use assets	178
Interest on lease liabilities	33
Total finance lease cost	211
Short-term lease cost	1,966
Variable lease cost	1,086
Total lease cost	$	12,684

Supplemental cash flow information related to our lease contracts for the three months ended March 31, 2019 is as follows (in thousands):

	Three Months Ended
	March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,930
Operating cash flows from finance leases	33
Financing cash flows from finance leases	171

Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at March 31, 2019 is as follows (in thousands, except as noted):

	March 31, 2019
Operating leases:
Other assets	$	130,628
Current operating lease liability	21,299
Other noncurrent liabilities	110,058
Total operating lease liabilities	131,357
Finance leases:
Net property, plant and equipment	4,105
Current portion of long-term debt	684
Long-term debt	3,601
Total finance lease liabilities	4,285
Weighted average remaining lease term (in years):
Operating leases	11.9
Finance leases	6.5
Weighted average discount rate (%):
Operating leases	3.88		%
Finance leases	2.90		%

Maturities of lease liabilities as of March 31, 2019 were as follows (in thousands):

	Operating Leases		Finance Leases
Remainder of 2019	$	18,801	$	607
2020	21,096		765
2021	12,435		676
2022	10,546		676
2023	10,198		676
Thereafter	93,911		1,352
Total lease payments	166,987		4,752
Less imputed interest	35,630		467
Total	$	131,357	$	4,285

As of December 31, 2018, future non-cancelable minimum lease payments were $25.6 million in 2019; $17.9 million in 2020; $12.5 million in 2021; $10.8 million in 2022; $10.1 million in 2023; and $87.1 million thereafter.

Leases

Leases:

We lease certain office space, buildings, transportation and equipment in various countries. The initial lease terms generally range from 1 to 30 years for real estate leases, and from 2 to 15 years for non-real estate leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term.

Many leases include options to terminate or renew, with renewal terms that can extend the lease term from 1 to 50 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following table provides details of our lease contracts for the three months ended March 31, 2019 (in thousands):

	Three Months Ended
	March 31, 2019
Operating lease cost	$	9,421
Finance lease cost:
Amortization of right of use assets	178
Interest on lease liabilities	33
Total finance lease cost	211
Short-term lease cost	1,966
Variable lease cost	1,086
Total lease cost	$	12,684

Supplemental cash flow information related to our lease contracts for the three months ended March 31, 2019 is as follows (in thousands):

	Three Months Ended
	March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,930
Operating cash flows from finance leases	33
Financing cash flows from finance leases	171

Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at March 31, 2019 is as follows (in thousands, except as noted):

	March 31, 2019
Operating leases:
Other assets	$	130,628
Current operating lease liability	21,299
Other noncurrent liabilities	110,058
Total operating lease liabilities	131,357
Finance leases:
Net property, plant and equipment	4,105
Current portion of long-term debt	684
Long-term debt	3,601
Total finance lease liabilities	4,285
Weighted average remaining lease term (in years):
Operating leases	11.9
Finance leases	6.5
Weighted average discount rate (%):
Operating leases	3.88		%
Finance leases	2.90		%

Maturities of lease liabilities as of March 31, 2019 were as follows (in thousands):

	Operating Leases		Finance Leases
Remainder of 2019	$	18,801	$	607
2020	21,096		765
2021	12,435		676
2022	10,546		676
2023	10,198		676
Thereafter	93,911		1,352
Total lease payments	166,987		4,752
Less imputed interest	35,630		467
Total	$	131,357	$	4,285

As of December 31, 2018, future non-cancelable minimum lease payments were $25.6 million in 2019; $17.9 million in 2020; $12.5 million in 2021; $10.8 million in 2022; $10.1 million in 2023; and $87.1 million thereafter.