LEASES LEASES

9 Months Ended

Sep. 30, 2019

The Corporation conducts a portion of its operations from leased facilities, which include manufacturing and service facilities, administrative offices, and warehouses. In addition, the Corporation leases vehicles, machinery, and office equipment under operating leases. Our leases have remaining lease terms of 1 year to 25 years, some of which include options for renewals, escalations, or terminations.

The components of lease expense were as follows:


	Three Months Ended		Nine Months Ended
(In thousands)	September 30, 2019		September 30, 2019
Operating lease cost	$	9,078	$	24,436

Finance lease cost:
Amortization of right-of-use assets	$	203	$	599
Interest on lease liabilities	124		377
Total finance lease cost	$	327	$	976

Supplemental cash flow information related to leases was as follows:


	Nine Months Ended
(In thousands)	September 30, 2019
Cash used for operating activities:
Operating cash flows used for operating leases	$	(22,721)
Operating cash flows used for finance leases	(377)
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations	$	3,047

Supplemental balance sheet information related to leases was as follows:


(In thousands, except lease term and discount rate)	As of September 30, 2019
Operating Leases
Operating lease right-of-use assets, net	$	134,286

Other current liabilities	$	24,199
Long-term operating lease liability	116,652
Total operating lease liabilities	$	140,851

Finance Leases
Property, plant, and equipment	$	15,561
Accumulated depreciation	(5,273)
Property, plant, and equipment, net	$	10,288

Other current liabilities	$	790
Other liabilities	11,211
Total finance lease liabilities	$	12,001

Weighted average remaining lease term
Operating leases	7.9 years
Finance leases	9.9 years
Weighted average discount rate
Operating leases	3.82		%
Finance leases	4.05		%

Maturities of lease liabilities were as follows:


	As of September 30, 2019
(In thousands)	Operating Leases		Finance Leases
2019	$	7,339	$	333
2020	28,517		1,342
2021	25,607		1,375
2022	19,468		1,410
2023	17,625		1,445
Thereafter	65,173		8,892
Total lease payments	163,729		14,797
Less: imputed interest	(22,878)		(2,796)
Total	$	140,851	$	12,001

In November 2018, the Corporation entered into a build-to-suit lease of approximately $27 million for the construction of a new facility for DRG in Charleston, South Carolina. The lease has not been reflected in the Corporation’s condensed consolidated financial statements as of September 30, 2019 as the Corporation has not yet obtained the right to control the use of the facility.