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Leases

6 Months Ended

Jun. 30, 2019

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-month and six-month periods ended June 30, 2019 (in thousands):



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease cost	$	8,381	$	17,802
Finance lease cost:
Amortization of right of use assets	136		314
Interest on lease liabilities	32		65
Total finance lease cost	168		379

Short-term lease cost	1,869		3,835
Variable lease cost	1,432		2,518
Total lease cost	$	11,850	$	24,534

Supplemental cash flow information related to our lease contracts for the six months ended June 30, 2019 is as follows (in thousands):



	Six Months Ended
	June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	15,775
Operating cash flows from finance leases	65
Financing cash flows from finance leases	341
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	526

Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at June 30, 2019 is as follows (in thousands, except as noted):



	June 30, 2019
Operating leases:
Other assets	$	124,872

Current operating lease liability	19,441
Other noncurrent liabilities	106,788
Total operating lease liabilities	126,229
Finance leases:
Net property, plant and equipment	4,089

Current portion of long-term debt	691
Long-term debt	3,459
Total finance lease liabilities	4,150
Weighted average remaining lease term (in years):
Operating leases	11.7
Finance leases	6.2
Weighted average discount rate (%):
Operating leases	3.87		%
Finance leases	2.89		%

Maturities of lease liabilities as of June 30, 2019 were as follows (in thousands):



	Operating Leases		Finance Leases
Remainder of 2019	$	12,495	$	408
2020	21,003		771
2021	12,685		682
2022	10,649		682
2023	10,246		682
Thereafter	93,748		1,364
Total lease payments	160,826		4,589
Less imputed interest	34,597		439
Total	$	126,229	$	4,150

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