Leases

6 Months Ended

Jun. 30, 2019

(10) Leases

The Company leases certain office space, construction and office equipment, vehicles and temporary housing generally under non-cancelable operating leases. Leases with an initial term of one year or less are not recorded on the balance sheet, and the Company generally recognizes lease expense for these leases on a straight-line basis over the lease term. As of June 30, 2019, the Company’s operating leases have remaining lease terms ranging from less than one year to 10 years, some of which include options to renew the leases. The exercise of lease renewal options is generally at the Company’s sole discretion. The Company’s leases do not contain any material residual value guarantees or material restrictive covenants.

The Company determines if an arrangement is a lease at inception. Operating lease ROU assets are included in other assets, while current and long-term operating lease liabilities are included in accrued expenses and other current liabilities, and other long-term liabilities, respectively, on the Condensed Consolidated Balance Sheet as of June 30, 2019. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The present value of future lease payments are discounted using either the implicit rate in the lease, if known, or the Company’s incremental borrowing rate for the specific lease as of the lease commencement date. The ROU asset is also adjusted for any prepayments made or incentives received. The lease terms include options to extend or terminate the lease only to the extent it is reasonably certain any of those options will be exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company accounts for lease components (e.g., fixed payments) separate from the non-lease components (e.g., common-area maintenance costs). The Company does not have any material financing leases.

The following table presents components of lease expense for the three and six months ended June 30, 2019:



	Three Months Ended		Six Months Ended
(in thousands)	June 30, 2019		June 30, 2019
Operating lease expense	$	3,921	$	7,702
Short-term lease expense^(a)		16,486		33,057
		20,407		40,759
Less: Sublease income		262		521
Total lease expense	$	20,145	$	40,238

(a)Short-term lease expense includes all leases with lease terms ranging from less than one month to one year. Short-term leases include, among other things, construction equipment rented on an as-needed basis as well as temporary housing.

The following table presents supplemental balance sheet information related to operating leases as of June 30, 2019:



		As of June 30,
(dollars in thousands)	Balance Sheet Line Item	2019
Assets
ROU assets	Other assets	$	42,968
Total lease assets		$	42,968
Liabilities
Current lease liabilities	Accrued expenses and other current liabilities	$	11,991
Long-term lease liabilities	Other long-term liabilities		34,002
Total lease liabilities		$	45,993
Weighted-average remaining lease term (in years)			4.7
Weighted-average discount rate			5.85%

The following table presents supplemental cash flow information and non-cash activity related to operating leases for the six months ended June 30, 2019:



	Six Months Ended
(in thousands)	June 30, 2019
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$	(7,622)
Non-cash activity:
ROU assets obtained in exchange for lease liabilities	$	6,040

The following table presents maturities of operating lease liabilities on an undiscounted basis as of June 30, 2019:



Year (in thousands)	Operating Leases
2019 (excluding the six months ended June 30, 2019)	$	7,442
2020		11,987
2021		8,595
2022		7,346
2023		6,129
Thereafter		12,431
Total lease payments		53,930
Less: Imputed interest		7,937
Total	$	45,993

As of December 31, 2018, future minimum lease payments under long-term non-cancelable operating leases as classified under ASC 840 were as follows:



Year (in thousands)	Operating Leases
2019	$	14,039
2020		10,706
2021		7,464
2022		6,567
2023		5,587
Thereafter		11,662
		56,025
Less: Sublease rental agreements		1,398
Total	$	54,627