Leases

3 Months Ended

Mar. 31, 2019

(10) Leases

The Company occupies offices and uses certain equipment under various operating lease arrangements. The Company has no finance leases. These leases have remaining lease terms of 1 year to 19 years, some of which include either, options to extend lease terms while others include options to terminate current lease terms at certain times, subject to notice requirements set out in the lease agreement. Payments under certain of the lease agreements may be subject to adjustment based on a consumer price index or other inflationary indices. The lease liability for such lease agreements as of the adoption date was based on fixed payments as of the adoption date. Any adjustments to these payments based on the related indices will be recorded to expense as incurred. Leases with an expected term of 12 months or less are not capitalized. Payments under such leases are expensed as incurred. The Company capitalizes non-lease components for equipment leases, but expenses non-lease components as incurred for real estate leases.

For the quarter ended March 31, 2019, operating lease expense was $8,942. Expense related to short-term leases (expected terms less than 12 months) and variable lease payments were not material in the first quarter of 2019.

Supplemental information related to the Company’s leases for the quarter ended March 31, 2019 is as follows:

	Quarter Ended
	March 31,
	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	9,574
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	23,680

Weighted Average Remaining Lease Term
Operating leases		6.7 years
Weighted Average Discount Rate
Operating leases		4.5%

The following is a reconciliation of future undiscounted cash flows to the operating liabilities, and the related right of use assets, included in our Consolidated Balance Sheets as of March 31, 2019:

	March 31,
	2019
2019 (excluding the three months ended March 31, 2019)	$	26,972
2020		33,756
2021		29,487
2022		27,260
2023		22,093
2024 and thereafter		46,277
Total future lease payments		185,845
Less imputed interest		26,968
Present value of future operating lease payments		158,877
Less current portion of operating lease liabilities ⁽¹⁾		29,534
Non-current operating lease liability ⁽²⁾		129,343
Operating lease right-of-use assets, net ⁽³⁾	$	141,075

⁽¹⁾ Included in Accrued liabilities on the consolidated balance sheets.

⁽²⁾ Included in Other liabilities on the consolidated balance sheets.

⁽³⁾ Included in Property, plant, and equipment on the consolidated balance sheets.