Leases

The Company leases certain office facilities, warehouses, manufacturing plants, equipment (which includes both office and plant equipment) and vehicles under operating leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term.

Certain leases include one or more options to renew. The exercise of lease renewal options is at the Company’s sole discretion. There are currently no renewal periods included in any of the leases’ respective lease terms as they are not reasonably certain of being exercised. The Company does not have any material purchase options.

Certain of our lease agreements have rental payments that are adjusted periodically for inflation or that are based on usage. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Supplemental balance sheet information related to leases as of March 31, 2019 was as follows:



	Balance Sheet Caption	March 31, 2019
Operating leases:
Building right-of-use assets - net	Other noncurrent assets	$	59,624
Equipment right-of-use assets - net	Other noncurrent assets	6,861
Total right-of-use assets - net		$	66,485
Operating leases:
Current lease liabilities	Accrued expenses	$	13,194
Noncurrent lease liabilities	Other noncurrent liabilities	54,968
Total lease liabilities		$	68,162

As part of the adoption of the new lease standard, the Company derecognized its liability for the construction of a new leased facility that was recorded in Other noncurrent liabilities on the Condensed Consolidated Balance Sheets and recorded it as a right of use asset in Other noncurrent assets on the Condensed Consolidated Balance Sheets with a corresponding lease liability in Accured expenses and Other noncurrent liabilities on the Condensed Consolidated Balance Sheets.

The components of lease cost for the three months ended March 31, 2019 were as follows:



	Three Months Ended March 31, 2019
Operating lease cost ⁽¹⁾	$	5,375
Variable lease cost	593
Total lease expense	$	5,968

⁽¹⁾ Includes short-term leases, which are immaterial.

Supplemental cash flow information related to leases for the three months ended March 31, 2019 was as follows:



	Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	5,539
Right-of-use assets obtained in exchange for new operating lease liabilities	1,809

Other supplemental information related to leases as of March 31, 2019 was as follows:



Lease Term and Discount Rate	March 31, 2019
Weighted-average remaining lease term (years):
Operating leases - building and equipment	8.39
Operating leases - vehicles	1.11
Weighted-average discount rate:
Operating leases - building and equipment	4.02	%
Operating leases - vehicles	3.23	%

The Company uses the implicit rate to determine the present value of the lease payments. If the implicit rate is not defined in the lease, the Company uses its incremental borrowing rate to determine the present value of the lease payments. The Company used either the implicit rate or the incremental borrowing rate based on the information available at the transition date to determine the present value of the lease payments as of January 1, 2019.

Total lease liabilities at March 31, 2019 have scheduled maturities as follows:



Maturity of Lease Liabilities	Operating Leases ⁽¹⁾
2019 (excluding the three months ended March 31, 2019)	$	11,276
2020	13,158
2021	11,161
2022	8,193
2023	6,626
Thereafter	30,123
Total lease payments	80,537
Less: Imputed interest	(12,375		)
Present value of lease liabilities	$	68,162

⁽¹⁾ Excludes $25.2 million of legally binding minimum lease payments for leases signed but not yet commenced.

Total lease liabilities at December 31, 2018 had scheduled maturities as follows:



Maturity of Lease Liabilities	Operating Leases
2019	$	17,509
2020	13,162
2021	10,516
2022	7,979
2023	6,535
Thereafter	29,658
Total lease payments	$	85,359