Leases

12 Months Ended

Dec. 31, 2020

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:


	2020		2019		Balance Sheet Location
Right-of-use assets, net	$	98,624	$	87,317	Other non-current assets

Current lease liability	$	29,216	$	27,584	Accrued and other liabilities
Non-current lease liability	69,830		60,937		Other non-current liabilities
Total operating lease liability	$	99,046	$	88,521

As of December 31, 2020, the Company has entered into additional real estate operating leases of $15.3 million that are expected to commence in 2021.

For the years ended December 31, 2020 and 2019, the Company had the following recorded in selling, general, and administrative associated with leasing arrangements:


	2020		2019
Operating lease expense	$	34,559	$	33,666
Variable lease expense	4,182		4,337
Short-term lease expense	991		1,187
Total lease expense	$	39,732	$	39,190

Weighted average remaining lease term	6.8 years		6.4 years
Weighted average discount rate	2.5%		2.9%

Rent expense for operating leases under ASC 840 - Leases was $38.9 million for the year ended December 31, 2018.

Accruals and other on the consolidated statement of cash flows includes the amortization of the lease right-of-use asset of $32.1 million and $31.1 million, offset by a change in the lease liability of $31.7 million and $30.1 million for the years ended December 31, 2020 and 2019, respectively. Lease payments within operating activities were $36.0 million and $33.5 million for the years ended December 31, 2020 and 2019, respectively. The Company also obtained non-cash lease right-of-use assets in exchange for lease liabilities of $35.0 million and $25.7 million for the years ended December 31, 2020 and 2019, respectively.

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


2021	$	31,305
2022	21,363
2023	14,716
2024	8,513
2025	4,536
Thereafter	28,160
Total lease payments	108,593
Less imputed interest	(9,547)
Total operating lease liability	$	99,046