Leases

9 Months Ended

Sep. 30, 2020

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 24 years, some of which include options to extend the leases for up to 20 years, and some of which include options to terminate the leases within 1 year.

As of September 30, 2020, the weighted average remaining lease term and weighted average discount rate for operating leases was 6.3 years and 4.3%.

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Operating lease cost	$	13,038		$	12,399		$	39,043		$	37,677
Variable lease cost		678			732			2,062			2,889
Short-term lease cost		118			41			258			145
Sublease income		(1,075	)		(1,395	)		(3,264	)		(4,563	)
Total lease expense	$	12,759		$	11,777		$	38,099		$	36,148

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

	Nine Months Ended September 30,
	2020		2019
Operating cash outflow from operating leases	$	40,865	$	39,885
Right-of-use assets obtained in exchange for lease obligations	$	62,514	$	150,127

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

Year Ending December 31,	Operating Leases
2020	$	15,631
2021		53,303
2022		36,529
2023		26,418
2024		21,389
Thereafter		41,468
Total		194,738
Less: Finance charges		26,820
Total principal liability	$	167,918

During the third quarter of 2020, the Company recognized $31.3 million of right-of-use assets, primarily in connection with building and warehouse lease renewals. The Company has additional lease liabilities of $1.2 million which have not yet commenced as of September 30, 2020, and as such, have not been recognized on the consolidated balance sheets.