Leases (Notes)

6 Months Ended

Jun. 30, 2019

Leases of Lessee Disclosure [Text Block]

LEASES

The Company adopted ASC 842 "Leases" with an effective date of January 1, 2019. The operating lease right-of-use asset was $92.7 million, and the lease liability was $93.5 million at inception. The Company elected the practical expedients package under ASC 842 and accordingly did not reassess any previously expired or existing arrangements, and related classification under ASC 840.

The Company's operating leases primarily comprise real estate and vehicles. Real estate leases are largely related to sales and marketing, service and administrative offices, while vehicle leases are primarily related to the Company's field sales and service organization. The consolidated balance sheet included the following balances as of June 30:



	2019		Balance Sheet Location
Right-of-use assets, net	$	88,143	Other non-current assets

Current lease liability	$	26,410	Accrued and other liabilities
Non-current lease liability	62,320		Other non-current liabilities
Total operating lease liability	$	88,730

The lease right-of-use asset, net increased total assets as of June 30, 2019 for U.S. Operations by $39.0 million, Swiss Operations by $1.3 million, Western European Operations by $20.6 million, Chinese Operations by $3.6 million, Other by $21.6 million, and Eliminations and Corporate by $1.8 million.

As of June 30, 2019, the Company has entered into additional real estate operating leases of $10.1 million that are expected to commence in 2019 and 2020.

For the three and six months ended June 30, 2019 the Company had the following recorded in selling, general and administrative:



	Three months ended		Six months ended
Operating lease expense	$	8,412	$	16,630
Variable lease expense	746		1,628
Short-term lease expense	429		820
Total lease expense	$	9,587	$	19,078

Weighted average remaining lease term			6.6 years
Weighted average discount rate			2.9		%

Accruals and other on the Consolidated Statement of Cash Flows includes the amortization of the lease right-of-use asset of $15.4 million, offset by a change in the lease liability of $15.3 million for the six months ended June 30, 2019. Lease payments within operating activities was $16.6 million for the six months ended June 30, 2019. The Company also had non-cash lease right-of-use assets in exchange for lease liabilities of $11.5 million for the six months ended June 30, 2019.

The following is a maturity analysis of the annual undiscounted cash flows for the annual periods ended June 30:



2020	$	28,641
2021	21,429
2022	13,325
2023	8,493
2024	5,008
Thereafter	22,131
Total lease payments	99,027
Less imputed interest	(10,297		)
Total operating lease liability	$	88,730

The future minimum lease payments under non-cancellable leases as of December 31, 2018:



2019	$	32,113
2020	23,771
2021	16,986
2022	9,855
2023	7,435
Thereafter	5,081
Total lease payments	$	95,241