Leases

9 Months Ended

Sep. 30, 2019

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 $2.7 million and $8.5 million for the three and nine months ended September 30, 2019, respectively.

For the nine months ended September 30, 2019, the Company paid $7.4 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 $6.5 million of right-of-use assets in exchange for operating lease obligations for the nine months ended September 30, 2019.

The Company included $20.1 million of right-of-use assets in Other Assets and $8.0 million and $12.1 million of operating lease liabilities in Other Accrued Expenses and Other Liabilities, respectively, on the Company’s Consolidated Condensed Balance Sheets as of September 30, 2019.

The Company’s weighted average remaining operating lease term was 3.6 years as of September 30, 2019. The Company’s weighted average discount rate for operating leases was 4.5% as of September 30, 2019.

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

(In thousands)

Year ending December 31,
2019	$	2,383
2020		8,133
2021		4,696
2022		2,457
2023		1,474
Thereafter		2,682
Total lease payments		21,825
Less imputed interest		(1,762	)
Present value of lease liabilities	$	20,063