Leases (Notes)

12 Months Ended

Dec. 31, 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 recognized upon adoption was $92.7 million, and the lease liability was $93.5 million. 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 - Leases.

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 December 31:



	2019		Balance Sheet Location
Right-of-use assets, net	$	87,317	Other non-current assets

Current lease liability	$	27,584	Accrued and other liabilities
Non-current lease liability	60,937		Other non-current liabilities
Total operating lease liability	$	88,521

As of December 31, 2019, the Company has entered into additional real estate operating leases of $23.3 million that are expected to commence in 2020.

For the twelve months ended December 31, 2019, the Company had the following recorded in selling, general, and administrative associated with leasing arrangements:



	2019
Operating lease expense	$	33,666
Variable lease expense	4,337
Short-term lease expense	1,187
Total lease expense	$	39,190

Weighted average remaining lease term	6.4 years
Weighted average discount rate	2.9		%

Rent expense for operating leases under ASC 840 - Leases was $38.9 million and $36.9 million for the years ended December 31, 2018 and 2017, respectively.

Accruals and other on the consolidated statement of cash flows includes the amortization of the lease right-of-use asset of $31.1 million, offset by a change in the lease liability of $30.1 million for the year ended December 31, 2019. Lease payments within operating activities were $33.5 million for the year ended December 31, 2019. The Company also had non-cash lease right-of-use assets in exchange for lease liabilities of $25.7 million for the year ended December 31, 2019.

The following is a maturity analysis of the annual undiscounted cash flows for the annual periods ended December 31:



2020	$	29,685
2021	21,211
2022	13,059
2023	8,241
2024	4,449
Thereafter	21,672
Total lease payments	98,317
Less imputed interest	(9,796		)
Total operating lease liability	$	88,521

The following is 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