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Leases

6 Months Ended

Jun. 30, 2019

Certain subsidiaries of the Company lease office space and equipment under long-term non-cancelable lease agreements which expire at various dates through 2034. Leases with an initial term of 12 months or less are not recorded on the balance sheet, instead the lease expense is recorded on a straight-line basis over the lease term. For lease agreements entered into, we combine lease and non-lease components. Some leases include options to extend the lease term or terminate the lease prior to the end of the lease term. The exercise of lease renewal options is at the Company's sole discretion, as such, these options are generally not recognized as part of our right-of-use asset or lease liabilities. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

The leases generally provide for fixed annual rentals plus certain other costs or credits. Some leases include rental payments based on a percentage of revenue over contractual levels or based on an index or rate. Our lease agreements do not include any material residual value guarantees or material restrictive covenants. We rent or sublease one real estate property to a third party, which constitutes an immaterial portion of our lease portfolio.

The following table summarizes the leases included in the consolidated balance sheets as follows:



(In thousands)	Balance Sheet Location	June 30, 2019
Assets
Operating	Operating lease right-of-use asset	$	175,677
Finance	Property and equipment, net	17,240
Total lease assets		$	192,917
Liabilities
Current:
Operating	Current portion of lease obligations	$	27,056
Finance	Current portion of lease obligations	4,389
		$	31,445
Noncurrent:
Operating	Lease obligations	$	203,815
Finance	Lease obligations	19,520
		223,335

Total lease liabilities		$	254,780

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date. Upon transition to ASC Topic 842, the Company used the incremental borrowing rate on January 1, 2019 for all operating leases that commenced prior to that date.

The following table summarizes the lease costs included in the condensed consolidated statement of income:



(In thousands)	Income Statement Location	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease costs	SG&A expenses	$	8,241	$	16,447
Finance lease costs:
Amortization of leased assets	Depreciation and amortization	701		1,374
Interest on lease liabilities	Net interest expense	644		1,322
Short term lease costs	SG&A expenses	1,283		2,874
Variable lease costs	SG&A expenses	169		477
Total net lease cost		$	11,038	$	22,494

The following table summarizes the maturity of lease liabilities for operating and finance leases:



(In thousands)	Operating Leases		Finance Leases		Total
2019	$	18,304	$	3,365	$	21,669
2020	36,305		5,886		42,191
2021	32,047		4,412		36,459
2022	34,017		4,439		38,456
2023	34,554		4,466		39,020
Thereafter	124,227		10,088		134,315
Total lease payments	279,454		32,656		312,110
Less: Interest	48,583		8,747		57,330
Present value of lease liabilities	$	230,871	$	23,909	$	254,780

The following table summarizes the weighted average remaining lease term and discount rate for operating and finance leases:



	June 30, 2019
Weighted average remaining lease term (years):
Operating leases	8.16
Finance leases	6.06
Weighted average discount rate:
Operating leases	4.75	%
Finance leases	10.28	%

The following table summarizes the supplemental cash paid for amounts in the measurement of lease liabilities:



	June 30, 2019
Operating cash flows from operating leases	$	17,037
Financing cash flows from finance leases	$	2,590

Leases

The following table summarizes the leases included in the consolidated balance sheets as follows:



(In thousands)	Balance Sheet Location	June 30, 2019
Assets
Operating	Operating lease right-of-use asset	$	175,677
Finance	Property and equipment, net	17,240
Total lease assets		$	192,917
Liabilities
Current:
Operating	Current portion of lease obligations	$	27,056
Finance	Current portion of lease obligations	4,389
		$	31,445
Noncurrent:
Operating	Lease obligations	$	203,815
Finance	Lease obligations	19,520
		223,335

Total lease liabilities		$	254,780

The following table summarizes the lease costs included in the condensed consolidated statement of income:



(In thousands)	Income Statement Location	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease costs	SG&A expenses	$	8,241	$	16,447
Finance lease costs:
Amortization of leased assets	Depreciation and amortization	701		1,374
Interest on lease liabilities	Net interest expense	644		1,322
Short term lease costs	SG&A expenses	1,283		2,874
Variable lease costs	SG&A expenses	169		477
Total net lease cost		$	11,038	$	22,494

The following table summarizes the maturity of lease liabilities for operating and finance leases:



(In thousands)	Operating Leases		Finance Leases		Total
2019	$	18,304	$	3,365	$	21,669
2020	36,305		5,886		42,191
2021	32,047		4,412		36,459
2022	34,017		4,439		38,456
2023	34,554		4,466		39,020
Thereafter	124,227		10,088		134,315
Total lease payments	279,454		32,656		312,110
Less: Interest	48,583		8,747		57,330
Present value of lease liabilities	$	230,871	$	23,909	$	254,780

The following table summarizes the weighted average remaining lease term and discount rate for operating and finance leases:



	June 30, 2019
Weighted average remaining lease term (years):
Operating leases	8.16
Finance leases	6.06
Weighted average discount rate:
Operating leases	4.75	%
Finance leases	10.28	%

The following table summarizes the supplemental cash paid for amounts in the measurement of lease liabilities:



	June 30, 2019
Operating cash flows from operating leases	$	17,037
Financing cash flows from finance leases	$	2,590