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Leases

12 Months Ended

Dec. 31, 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 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.

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


(In thousands)	Balance Sheet Location	December 31, 2019
Assets
Operating	Operating lease right-of-use assets	$	170,056
Finance	Property and equipment, net	15,713
Total lease assets		$	185,769
Liabilities
Current:
Operating	Current portion of lease obligations	$	30,171
Finance	Current portion of lease obligations	3,788
		33,959
Noncurrent:
Operating	Lease obligations	193,570
Finance	Lease obligations	17,477
		211,047

Total lease liabilities		$	245,006

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 consolidated statement of income:


(In thousands)	Income Statement Location	December 31, 2019
Operating lease costs	SG&A expenses	$	33,184
Finance lease costs:
Amortization of leased assets	Depreciation and amortization	2,472
Interest on lease liabilities	Net interest expense	2,513
Short term lease costs	SG&A expenses	3,309
Variable lease costs	SG&A expenses	1,068
Total net lease costs		$	42,546

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


(In thousands)	Operating Leases		Finance Leases		Total
2020	$	39,446	$	5,863	$	45,309
2021	32,681		4,389		37,070
2022	34,330		4,416		38,746
2023	34,915		4,442		39,357
2024	34,391		4,469		38,860
Thereafter	92,963		5,197		98,160
Total lease payments	268,726		28,776		297,502
Less: Interest	44,990		7,506		52,496
Present value of lease liabilities	$	223,736	$	21,270	$	245,006

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


	December 31, 2019
Weighted average remaining lease term (years):
Operating leases	7.7
Finance leases	5.9
Weighted average discount rate:
Operating leases	4.8	%
Finance leases	10.5	%

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


	December 31, 2019
Operating cash flows from operating leases	$	26,758

Financing cash flows from finance leases	$	5,115

Rent expense for the years ended December 31, 2019, 2018 and 2017 amounted to $38.8 million, $38.0 million and $31.7 million, respectively.

Leases