Leases

6 Months Ended

Jun. 30, 2019

7. Leases

The Company leases certain office space, warehouses, land, and equipment under operating lease arrangements. Some of the Company’s leases include options to extend the leases for up to an additional five years. Some of the Company’s lease agreements also include rental payments that are adjusted periodically for inflation (i.e., CPI index).

The Company recorded operating lease expense, which includes short-term lease expense and variable lease costs, of $2.8 million and $5.8 million for the three and six months ended June 30, 2019, respectively.

For the six months ended June 30, 2019, the Company paid $5.0 million in cash for operating leases, not including short-term lease expense or variable lease costs. The Company entered into operating leases that resulted in $5.0 million of right-of-use assets in exchange for operating lease obligations for the six months ended June 30, 2019.

The Company included $21.2 million of right-of-use assets in Other Assets and $8.1 million and $13.1 million of operating lease liabilities in Other Accrued Expenses and Other Liabilities, respectively, on the Company’s Consolidated Condensed Balance Sheets as of June 30, 2019.

The Company’s weighted average remaining operating lease term was 3.7 years as of June 30, 2019. The Company’s weighted average discount rate for operating leases was 4.4% as of June 30, 2019.

As of June 30, 2019, maturities of operating lease liabilities for future annual periods are as follows:

(in thousands)

Year ending December 31,
2019	$	4,655
2020		7,789
2021		4,303
2022		2,224
2023		1,422
Thereafter		2,699
Total lease payments		23,092
Less imputed interest		(1,911	)
Present value of lease liabilities	$	21,181