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Leases
 12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
Leases Leases
The Company routinely enters into leasing arrangements for real estate (including manufacturing facilities, office space, warehouses, and packaging centers), transportation equipment (automobiles, forklifts, and trailers), and office equipment (copiers and postage machines). The assessment of the certainty associated with the exercise of various lease renewal, termination, and purchase options included in the Company's lease contracts is at the Company's sole discretion. Most real estate leases, in particular, include one or more options to renew, with renewal terms that can extend the lease term from one to 50 years. The Company's leases do not have any significant residual value guarantees or restrictive covenants.
As the implicit rate in the Company's leases is not readily determinable, the Company calculates its right of use lease liabilities using discount rates based upon the Company’s incremental secured borrowing rate, which contemplates and reflects a particular geographical region’s interest rate for the leases active within that region of the Company’s global operations. The Company further utilizes a portfolio approach by assigning a “short” rate to contracts with lease terms of 10 years or less and a “long” rate for contracts greater than 10 years. See Note 2 for further information regarding the Company's adoption of ASU 2016-02, "Leases."
The following table sets forth the balance sheet location and values of the Company’s lease assets and lease liabilities at December 31, 2019:
ClassificationBalance Sheet LocationDecember 31, 2019
Lease Assets
Operating lease assetsRight of Use Asset - Operating Leases$298,393  
Finance lease assetsOther Assets34,858  
Total lease assets$333,251  
Lease Liabilities
Current operating lease liabilitiesAccrued expenses and other$54,048  
Current finance lease liabilitiesNotes payable and current portion of debt10,803  
Total current lease liabilities$64,851  
Noncurrent operating lease liabilitiesNoncurrent Operating Lease Liabilities$253,992  
Noncurrent finance lease liabilitiesLong-term Debt, Net of Current Portion22,274  
Total noncurrent lease liabilities$276,266  
Total lease liabilities$341,117  

As of December 31, 2019, the Company has entered into additional leases that have not yet commenced. The associated contracts include payments over the respective lease terms totaling $6,200, which are not reflected in the Company's liabilities recorded as of December 31, 2019. These leases should commence during fiscal year 2020 with lease terms of approximately 12 years.
Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the right of use asset recorded on the balance sheet was determined based upon factors considered at the commencement date, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term.
The following table sets forth the components of the Company's total lease cost for the year ended December 31, 2019:
Lease CostTwelve months ended December 31, 2019
Operating lease cost(a)$61,845  
Finance lease cost:
Amortization of lease asset(a) (b)6,965  
Interest on lease liabilities(c)763  
Variable lease cost(a) (d)51,616  
Total lease cost$121,189  

(a) Production-related and administrative amounts are included in cost of sales and selling, general and administrative expenses, respectively.
(b) Included in depreciation and amortization.
(c) Included in interest expense.
(d) Also includes short term lease costs, which are deemed immaterial.

In compliance with ASC 842, the Company must provide the prior year disclosures required under the previous lease guidance (ASC 840) for comparative periods presented herein. Rental expense under operating leases for the year ended December 31, 2018 was $80,300 and $68,900 for the year ended December 31, 2017.
The following table sets forth the five-year maturity schedule of the Company's lease liabilities as of December 31, 2019:
Maturity of Lease LiabilitiesOperating LeasesFinance LeasesTotal
2020$55,681  $11,124  $66,805  
202149,474  9,258  58,732  
202243,418  7,322  50,740  
202339,831  4,569  44,400  
202433,424  2,355  35,779  
Beyond 2024167,463  227  167,690  
Total lease payments$389,291  $34,855  $424,146  
     Less: Interest81,251  1,778  83,029  
Lease Liabilities$308,040  $33,077  $341,117  
The following tables set forth the Company's weighted average remaining lease term and discount rates used in the calculation of its outstanding lease liabilities at December 31, 2019, along with other lease-related information for the year ended December 31, 2019:
Lease Term and Discount RateAs of December 31, 2019
Weighted-average remaining lease term (years):
     Operating leases10.2
     Finance leases3.8
Weighted-average discount rate:
     Operating leases4.74%  
     Finance leases2.97%  
Other InformationTwelve Months Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
     Operating cash flows used by operating leases $61,532  
     Operating cash flows used by finance leases763  
     Financing cash flows used by finance leases7,989  
Leased assets obtained in exchange for new operating lease liabilities28,762  
Leased assets obtained in exchange for new finance lease liabilities24,106  
Leases Leases
The Company routinely enters into leasing arrangements for real estate (including manufacturing facilities, office space, warehouses, and packaging centers), transportation equipment (automobiles, forklifts, and trailers), and office equipment (copiers and postage machines). The assessment of the certainty associated with the exercise of various lease renewal, termination, and purchase options included in the Company's lease contracts is at the Company's sole discretion. Most real estate leases, in particular, include one or more options to renew, with renewal terms that can extend the lease term from one to 50 years. The Company's leases do not have any significant residual value guarantees or restrictive covenants.
As the implicit rate in the Company's leases is not readily determinable, the Company calculates its right of use lease liabilities using discount rates based upon the Company’s incremental secured borrowing rate, which contemplates and reflects a particular geographical region’s interest rate for the leases active within that region of the Company’s global operations. The Company further utilizes a portfolio approach by assigning a “short” rate to contracts with lease terms of 10 years or less and a “long” rate for contracts greater than 10 years. See Note 2 for further information regarding the Company's adoption of ASU 2016-02, "Leases."
The following table sets forth the balance sheet location and values of the Company’s lease assets and lease liabilities at December 31, 2019:
ClassificationBalance Sheet LocationDecember 31, 2019
Lease Assets
Operating lease assetsRight of Use Asset - Operating Leases$298,393  
Finance lease assetsOther Assets34,858  
Total lease assets$333,251  
Lease Liabilities
Current operating lease liabilitiesAccrued expenses and other$54,048  
Current finance lease liabilitiesNotes payable and current portion of debt10,803  
Total current lease liabilities$64,851  
Noncurrent operating lease liabilitiesNoncurrent Operating Lease Liabilities$253,992  
Noncurrent finance lease liabilitiesLong-term Debt, Net of Current Portion22,274  
Total noncurrent lease liabilities$276,266  
Total lease liabilities$341,117  

As of December 31, 2019, the Company has entered into additional leases that have not yet commenced. The associated contracts include payments over the respective lease terms totaling $6,200, which are not reflected in the Company's liabilities recorded as of December 31, 2019. These leases should commence during fiscal year 2020 with lease terms of approximately 12 years.
Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the right of use asset recorded on the balance sheet was determined based upon factors considered at the commencement date, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term.
The following table sets forth the components of the Company's total lease cost for the year ended December 31, 2019:
Lease CostTwelve months ended December 31, 2019
Operating lease cost(a)$61,845  
Finance lease cost:
Amortization of lease asset(a) (b)6,965  
Interest on lease liabilities(c)763  
Variable lease cost(a) (d)51,616  
Total lease cost$121,189  

(a) Production-related and administrative amounts are included in cost of sales and selling, general and administrative expenses, respectively.
(b) Included in depreciation and amortization.
(c) Included in interest expense.
(d) Also includes short term lease costs, which are deemed immaterial.

In compliance with ASC 842, the Company must provide the prior year disclosures required under the previous lease guidance (ASC 840) for comparative periods presented herein. Rental expense under operating leases for the year ended December 31, 2018 was $80,300 and $68,900 for the year ended December 31, 2017.
The following table sets forth the five-year maturity schedule of the Company's lease liabilities as of December 31, 2019:
Maturity of Lease LiabilitiesOperating LeasesFinance LeasesTotal
2020$55,681  $11,124  $66,805  
202149,474  9,258  58,732  
202243,418  7,322  50,740  
202339,831  4,569  44,400  
202433,424  2,355  35,779  
Beyond 2024167,463  227  167,690  
Total lease payments$389,291  $34,855  $424,146  
     Less: Interest81,251  1,778  83,029  
Lease Liabilities$308,040  $33,077  $341,117  
The following tables set forth the Company's weighted average remaining lease term and discount rates used in the calculation of its outstanding lease liabilities at December 31, 2019, along with other lease-related information for the year ended December 31, 2019:
Lease Term and Discount RateAs of December 31, 2019
Weighted-average remaining lease term (years):
     Operating leases10.2
     Finance leases3.8
Weighted-average discount rate:
     Operating leases4.74%  
     Finance leases2.97%  
Other InformationTwelve Months Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
     Operating cash flows used by operating leases $61,532  
     Operating cash flows used by finance leases763  
     Financing cash flows used by finance leases7,989  
Leased assets obtained in exchange for new operating lease liabilities28,762  
Leased assets obtained in exchange for new finance lease liabilities24,106