Leases Leases

9 Months Ended

Sep. 30, 2019

Disclosure Text Block [Abstract]

Lessee, Operating Leases [Text Block]

NOTE 18 — Leases

We lease certain land, buildings and equipment under non-cancellable operating leases used in our operations. Operating lease assets represent our right to use an underlying asset for the lease term. Operating lease liabilities represent the present value of lease payments over the lease term, discounted using an estimate of our secured incremental borrowing rate because none of our leases contain a rate implicit in the lease arrangement.

The operating lease assets and liabilities are adjusted to include the impact of any lease incentives and non-lease components. We have elected not to separate lease and non-lease components, which include taxes and common area maintenance in some of our leases. Variable lease payments that depend on an index or a rate are included in lease payments using the prevailing index or rate in effect at lease commencement.

Options to extend or terminate a lease are included in the lease term when it is reasonably likely that we will exercise that option. We have elected not to record leases with an initial term of 12 months or less on the balance sheet and instead recognize those lease payments on a straight-line basis over the lease term.

We determine if an arrangement is a lease or contains a lease at its inception, which normally does not require significant estimates or judgments. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants and we currently have no material sublease agreements.

Total lease expense for the three and nine months ended September 30, 2019 is as follows:

	Three Months Ended		Nine Months Ended
	September 30, 2019		September 30, 2019
Operating lease cost	$	1,128	$	3,197
Short-term lease cost	43		292
Total lease cost	$	1,171	$	3,489

Remaining maturity of our existing lease liabilities as of September 30, 2019 is as follows:

	Operating Leases(1)
2019	$	1,117
2020	4,420
2021	4,310
2022	4,116
2023	3,701
Thereafter	20,442
Total	$	38,106
Less: interest	(10,550		)
Present value of lease liabilities	$	27,556

⁽¹⁾ Operating lease payments include $5,266 of payments related to options to extend lease terms that are reasonably expected to be exercised.

Balance Sheet Classification:
Operating lease obligations	$	2,677
Long-term operating lease obligations	24,879
Total lease liabilities	$	27,556
Weighted-average remaining lease terms (years)	9.27
Weighted-average discount rate	6.81		%
Supplemental cash flow information related to leases:
Cash paid for amounts included in the measurement of lease liabilities	$	2,887
Leased assets obtained in exchange for new operating lease liabilities	$	2,961