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Leases
6 Months Ended
Jun. 30, 2020
Leases [Abstract]  
Leases 8.    Leases

Chemed and each of its operating subsidiaries are service companies. As such, real estate leases comprise the largest lease obligation (and conversely, right of use asset) in our lease portfolio. VITAS has leased office space, as well as space for IPUs and/or contract beds within hospitals. Roto-Rooter has leased office space. Our leases have remaining terms of under 1 year to 10 years, some of which include options to extend the lease for up to 5 years, and some of which include options to terminate the lease within 1 year.

We do not currently have any finance leases, therefore all lease information disclosed is related to operating leases.

The components of balance sheet information related to leases were as follows:


June 30,


December 31,

2020

2019

Assets

Operating lease assets

$

128,418 

$

111,652 

Liabilities

Current operating leases

36,093 

39,280 

Noncurrent operating leases

104,444 

86,656 

Total operating lease liabilities

$

140,537 

$

125,936 

The components of lease expense for the second quarter is as follows (in thousands):

Three months ended June 30,

2020

2019

Lease Expense (a)

Operating lease expense

$

15,103 

$

11,573 

Sublease income

(7)

-

Net lease expense

$

15,096 

$

11,573 

The components of lease expense for the first six months is as follows (in thousands):

Six months ended June 30,

2020

2019

Lease Expense (a)

Operating lease expense

$

29,731 

$

23,098 

Sublease income

(7)

(6)

Net lease expense

$

29,724 

$

23,092 

(a)Includes short-term leases and variable lease costs, which are immaterial. Included in both cost of services provided and goods sold and selling, general and administrative expenses.

The components of cash flow information related to leases were as follows:

Six months ended
June 30,

2020

2019

Cash paid for amounts included in the measurement of lease liabilities

Operating cash flows from leases

$

24,967 

$

20,201 

Leased assets obtained in exchange for new operating lease liabilities

$

40,133 

$

15,944 

Weighted Average Remaining Lease Term at June 30, 2020

Operating leases

5.1

years

Weighted Average Discount Rate at June 30, 2020

Operating leases

3.1

%

Maturity of Operating Lease Liabilities (in thousands)

2020

$

23,512

2021

37,394

2022

28,283

2023

21,331

2024

15,508

Thereafter

26,475

Total lease payments

$

152,503

Less: interest

(11,675)

Less: future lease obligations not yet commenced

(291)

Total liability recognized on the balance sheet

$

140,537

For leases commencing prior to April 2019, minimum rental payments exclude payments to landlords for real estate taxes and common area maintenance. Operating lease payments include $2.3 million related to extended lease terms that are reasonably certain of being exercised and exclude $291,000 lease payments for leases signed but not yet commenced.