Leases

3 Months Ended

Mar. 31, 2019

NOTE 9. LEASES

The Company enters into lease agreements for real estate which is primarily used for office facilities in the ordinary course of business. These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease. See Note 1 Organization & Summary of Significant Accounting Policies for additional information regarding the accounting for leases.

Certain of our European operating real estate leases contain variable lease payments which are based on indexes of the respective countries. Most leases include an option to extend or renew the lease term. The exercise of the renewal option is at our discretion. The operating lease liability includes lease payments related to options to extend or renew the lease term if we are reasonably certain of exercising those options. In determining the present value of lease payments, we utilize the Company’s incremental secured borrowing rate commensurate with the term of the underlying lease.

Rent expense is included in Other Operating Expenses in the Consolidated Statement of Income (Loss). Additional information regarding the Company’s real estate operating leases is as follows:

amounts in thousands	Three Months Ended March 31, 2019
Lease cost
Operating leases	$	2,121
Variable leases		2
Total lease cost	$	2,123

Other information on operating leases
Cash payments included in the measurement of lease liabilities reported in operating cash flows	$	2,459
Weighted average discount rate		2.97	%
Weighted average remaining lease term in years	7.2 years

The following table presents the contractual maturities of the Company's lease liabilities:

amounts in thousands	Real Estate Lease Liability
Remainder of 2019	$	7,480
2020		9,818
2021		8,985
2022		8,090
2023		7,344
Thereafter		15,869
Total undiscounted lease base rent payments		57,586
Less: present value adjustment		3,970
Operating lease liability	$	53,616