Leased Assets and Liabilities

9 Months Ended

Sep. 30, 2019

We lease real estate and equipment under operating and finance lease agreements. Our leases have terms of up to 15 years, some of which include the option to extend the lease for up to 5 years. At lease commencement, a lease liability and corresponding right-of-use asset is recognized. Lease liabilities represent the present value of future lease payments over the expected lease term, which includes options to extend or terminate the lease when it is reasonably certain those options will be exercised. Lease payments include all fixed payments and variable payments tied to an index. Variable payments excluded from the right-of-use asset and lease liability primarily include common area maintenance charges, property taxes, insurance and mileage. The present value of our lease liability is determined using our incremental borrowing rate at lease inception. Information regarding our operating and financing leases are as follows:



Leases	Balance Sheet Location	September 30, 2019		December 31, 2018
Assets
Operating	Operating lease assets	$	172,617	$	152,554
Finance	Property, plant and equipment, net	11,250		10,683
Total leased assets		$	183,867	$	163,237

Liabilities
Operating	Current operating lease liabilities	$	34,091	$	35,208
	Noncurrent operating lease liabilities	148,125		125,294
Finance	Accounts payable and accrued liabilities	2,773		2,708
	Other noncurrent liabilities	7,589		7,054
Total lease liabilities		$	192,578	$	170,264



	Three Months Ended September 30,						Nine Months Ended September 30,
Lease Cost	2019			2018			2019			2018
Operating lease expense	$	12,347		$	12,395		$	34,750		$	33,835
Finance lease expense
Amortization of leased assets	838			692			2,529			1,934
Interest on lease liabilities	172			135			520			378
Variable lease expense	4,969			4,272			18,821			16,486
Sublease income	(381		)	(680		)	(1,726		)	(1,132		)
Total expense	$	17,945		$	16,814		$	54,894		$	51,501

Operating lease expense includes immaterial amounts related to leases with terms of 12 months or less.



Future Lease Payments	Operating Leases		Finance Leases		Total
Remaining for year ending December 31, 2019	$	11,233	$	907	$	12,140
Year ending December 31, 2020	42,292		3,242		45,534
Year ending December 31, 2021	35,970		2,850		38,820
Year ending December 31, 2022	27,799		2,278		30,077
Year ending December 31, 2023	21,392		1,626		23,018
Thereafter	88,779		983		89,762
Total	227,465		11,886		239,351
Less: present value discount	45,249		1,524		46,773
Lease liability	$	182,216	$	10,362	$	192,578

Operating leases exclude $28 million of minimum lease payments for leases signed but not yet commenced at September 30, 2019.



Lease Term and Discount Rate	September 30, 2019	December 31, 2018
Weighted-average remaining lease term
Operating leases	7.5 years	7.2 years
Finance leases	4.0 years	4.1 years
Weighted-average discount rate
Operating leases	5.9%	4.5%
Finance leases	6.7%	6.2%



	Three Months Ended September 30,				Nine Months Ended September 30,
Cash Flow Information	2019		2018		2019		2018
Operating cash outflows - operating leases	$	10,440	$	12,319	$	32,041	$	33,075
Operating cash outflows - finance leases	$	172	$	135	$	520	$	378
Financing cash outflows - finance leases	$	758	$	630	$	2,278	$	1,786

Leased assets obtained in exchange for new lease obligations
Operating leases	$	3,123	$	26,134	$	51,504	$	33,128
Finance leases	$	1,124	$	2,983	$	3,227	$	4,143

Leased Assets and Liabilities



Leases	Balance Sheet Location	September 30, 2019		December 31, 2018
Assets
Operating	Operating lease assets	$	172,617	$	152,554
Finance	Property, plant and equipment, net	11,250		10,683
Total leased assets		$	183,867	$	163,237

Liabilities
Operating	Current operating lease liabilities	$	34,091	$	35,208
	Noncurrent operating lease liabilities	148,125		125,294
Finance	Accounts payable and accrued liabilities	2,773		2,708
	Other noncurrent liabilities	7,589		7,054
Total lease liabilities		$	192,578	$	170,264



	Three Months Ended September 30,						Nine Months Ended September 30,
Lease Cost	2019			2018			2019			2018
Operating lease expense	$	12,347		$	12,395		$	34,750		$	33,835
Finance lease expense
Amortization of leased assets	838			692			2,529			1,934
Interest on lease liabilities	172			135			520			378
Variable lease expense	4,969			4,272			18,821			16,486
Sublease income	(381		)	(680		)	(1,726		)	(1,132		)
Total expense	$	17,945		$	16,814		$	54,894		$	51,501

Operating lease expense includes immaterial amounts related to leases with terms of 12 months or less.



Future Lease Payments	Operating Leases		Finance Leases		Total
Remaining for year ending December 31, 2019	$	11,233	$	907	$	12,140
Year ending December 31, 2020	42,292		3,242		45,534
Year ending December 31, 2021	35,970		2,850		38,820
Year ending December 31, 2022	27,799		2,278		30,077
Year ending December 31, 2023	21,392		1,626		23,018
Thereafter	88,779		983		89,762
Total	227,465		11,886		239,351
Less: present value discount	45,249		1,524		46,773
Lease liability	$	182,216	$	10,362	$	192,578

Operating leases exclude $28 million of minimum lease payments for leases signed but not yet commenced at September 30, 2019.



Lease Term and Discount Rate	September 30, 2019	December 31, 2018
Weighted-average remaining lease term
Operating leases	7.5 years	7.2 years
Finance leases	4.0 years	4.1 years
Weighted-average discount rate
Operating leases	5.9%	4.5%
Finance leases	6.7%	6.2%



	Three Months Ended September 30,				Nine Months Ended September 30,
Cash Flow Information	2019		2018		2019		2018
Operating cash outflows - operating leases	$	10,440	$	12,319	$	32,041	$	33,075
Operating cash outflows - finance leases	$	172	$	135	$	520	$	378
Financing cash outflows - finance leases	$	758	$	630	$	2,278	$	1,786

Leased assets obtained in exchange for new lease obligations
Operating leases	$	3,123	$	26,134	$	51,504	$	33,128
Finance leases	$	1,124	$	2,983	$	3,227	$	4,143