Leases

The Company has operating and finance leases for regional offices, manufacturing facilities, retail centers, distribution centers and certain equipment. The Company’s leases have remaining lease terms of 1 year to 15 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within 1 year. As of March 31, 2019, the weighted average remaining lease term and weighted average discount rate for operating leases was 4.1 years and 4.8%. The Company has not separately disclosed finance leases, as they are not material, either individually or in the aggregate, to the Company’s consolidated financial statements.

The components of lease expense were as follows (U.S. dollars in thousands):

	Three Months Ended March 31, 2019

Operating lease cost	$	12,861
Short-term lease cost		52
Variable lease cost		1,052
	$	13,965

As of March 31, 2019, the Company had $117.3 million of operating right-of-use assets on the balance sheet, along with $38.9 million and $81.1 million of operating lease liabilities in accrued expenses and long-term operating lease liabilities, respectively.

Supplemental cash flow information related to leases was as follows (U.S. dollars in thousands):

	Three Months Ended March 31, 2019

Operating cash outflow from operating leases	$	14,377

ROU assets obtained in exchange for lease obligations		128,704

Maturities of lease liabilities were as follows (U.S. dollars in thousands):

Year Ending December 31,	Operating leases

2019	$	43,686
2020		33,522
2021		23,544
2022		13,187
2023		8,542
Thereafter		10,398
Total		132,879
Less: Finance charges		12,899
Total principal liability	$	119,980

The Company has additional lease liabilities of $2.6 million which have not yet commenced as of March 31, 2019, and as such, have not been recognized on the Company’s Consolidated balance sheet.

Under ASC 840, minimum future operating leases and financing obligations at December 31, 2018 are as follows (U.S. dollars in thousands):

Year Ending December 31,	Operating leases		Finance leases

2019	$	39,358	$	726
2020		27,553		748
2021		20,266		757
2022		11,723		770
2023		9,950		794
Thereafter		7,628		1,148
Total minimum lease payments	$	116,478	$	4,943