17. Leases

The Company’s breakdown of lease expense for the three months ended March 31, 2019 is as follows:



Three months ended March 31, 2019
Operating lease cost	$	5,212
Finance lease cost
Amortization of leased assets		1,760
Interest on lease liabilities		155
Short-term lease cost		2,565
Sublease income		(154)
	$	9,538

Operating leases

The Company has entered into commercial leases for various auction sites and offices located in North America, Europe, the Middle East and Asia. The majority of these leases are non-cancellable. The Company also has further operating leases for computer equipment, certain motor vehicles and small office equipment where it is not in the best interest of the Company to purchase these assets.

The majority of the Company‘s operating leases have a fixed term with a remaining life between one month and 20 years, with renewal options included in the contracts. The leases have varying contract terms, escalation clauses and renewal options. Generally there are no restrictions placed upon the lessee by entering into these leases, other than restrictions on use of property, sub-letting and alterations. At the inception of a lease, the Company determines whether it is reasonably certain to exercise a renewal option and includes the options in the determination of the lease term and the lease liability where it is reasonably certain to exercise the option. If the Company’s intention is to exercise an option subsequent to the commencement of the lease, the Company will re-assess the lease term. The Company has included certain renewal options in its operating lease liabilities for key property leases for locations that have strategic importance to the Company such as its Corporate Head Office. The Company has not included any purchase options available within its operating lease portfolio in its determination of its operating lease liability.

17. Leases (continued)

Operating leases (continued)

The future aggregate minimum lease payments under non-cancellable operating leases are as follows:



Remainder of 2019	$	11,555
2020		13,817
2021		10,925
2022		9,524
2023		7,792
Thereafter		85,876
Total future minimum lease payments	$	139,489
less: imputed interest		(35,804)
Total operating lease liability	$	103,685
less: operating lease liability - current		(10,650)
Total operating lease liability – non-current	$	93,035

At March 31, 2019 the Company has ROU assets relating to operating leases in the amount of $96,805,000.

At March 31, 2019 the weighted average remaining lease term for operating leases is 14.9 years and the weighted average discount rate is 4.1%.

Finance leases

The Company has entered into finance lease arrangements for certain vehicles, computer and yard equipment and office furniture. The majority of the leases have a fixed term with a remaining life of one month to six years with renewal options included in the contracts. In certain of these leases, the Company has the option to purchase the leased asset at fair market value or a stated residual value at the end of the lease term. For certain leases such as vehicle leases the Company has included renewal options in the determination of its lease liabilities. The Company has not included any purchase options available within its finance lease portfolio in its determination of the finance lease liability.

As at March 31, 2019, the net carrying amount of computer and yard equipment and other assets under capital leases is $15,356,000 (December 31, 2018: $14,976,000), and is included in the total property, plant and equipment as disclosed on the consolidated balance sheets.



As at March 31, 2019		Cost		Accumulated depreciation		Net book value
Computer equipment	$	11,291	$	(4,805)	$	6,486
Yard and others		11,925		(3,055)		8,870
	$	23,216	$	(7,860)	$	15,356

As at December 31, 2018		Cost		Accumulated depreciation		Net book value
Computer equipment	$	9,428	$	(3,992)	$	5,436
Yard and auto equipment		12,125		(2,585)		9,540
	$	21,553	$	(6,577)	$	14,976

17. Leases (continued)

Finance leases (continued)

The future aggregate minimum lease payments under non-cancellable finance leases are as follows:



Remainder of 2019	$	4,539
2020		5,157
2021		3,871
2022		2,314
2023		1,020
Thereafter		43
Total future minimum lease payments	$	16,944
less: imputed interest		(303)
Total finance lease liability	$	16,641
less: finance lease liability - current		(5,729)
Total finance lease liability – non-current	$	10,912

At March 31, 2019 the weighted average remaining lease term for finance leases is 3.3 years and the weighted average discount rate is 3.9%.

Subleases

As at March 31, 2019, the total future minimum sublease payments expected to be received under non-cancellable subleases is $981,000.