Leases

6 Months Ended

Jun. 30, 2020

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 June 30, 2020 and December 31, 2019 was as follows:


	Balance Sheet Caption	June 30, 2020		December 31, 2019
Operating leases:
Building right-of-use assets - net	Other noncurrent assets	$	101,881	$	75,381
Equipment right-of-use assets - net	Other noncurrent assets	6,202		6,993
Total right-of-use assets - net		$	108,083	$	82,374
Operating leases:
Current lease liabilities	Accrued expenses	$	16,584	$	15,235
Noncurrent lease liabilities	Other noncurrent liabilities	94,503		69,928
Total lease liabilities		$	111,087	$	85,163

The components of lease cost for the three and six months ended June 30, 2020 and 2019 were as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Operating lease cost ⁽¹⁾	$	5,986	$	6,195	$	12,314	$	11,570
Variable lease cost	313		625		954		1,218
Total lease expense	$	6,299	$	6,820	$	13,268	$	12,788

⁽¹⁾ Includes short-term leases.

Supplemental cash flow information related to leases for the six months ended June 30, 2020 and 2019 was as follows:


	Six Months Ended June 30, 2020		Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	12,225	$	6,071
Right-of-use assets obtained in exchange for new operating lease liabilities	34,298		4,180

Other supplemental information related to leases as of June 30, 2020 and December 31, 2019 was as follows:


Lease Term and Discount Rate	June 30, 2020		December 31, 2019
Weighted-average remaining lease term (years):
Operating leases - building and equipment	9.80		9.61
Operating leases - vehicles	1.98		1.92
Weighted-average discount rate:
Operating leases - building and equipment	3.60	%	4.08	%
Operating leases - vehicles	2.64	%	2.99	%

The Company uses its incremental borrowing rate to determine the present value of the lease payments.

Total lease liabilities at June 30, 2020 have scheduled maturities as follows:


Maturity of Lease Liabilities	Operating Leases ⁽¹⁾
2020 (excluding the six months ended June 30, 2020)	$	9,941
2021	17,794
2022	15,372
2023	13,245
2024	11,001
Thereafter	66,503
Total lease payments	133,856
Less: Imputed interest	(22,769)
Present value of lease liabilities	$	111,087

⁽¹⁾ Excludes $0.2 million of legally binding minimum lease payments for leases signed but not yet commenced.

Total lease liabilities at December 31, 2019 had scheduled maturities as follows:


Maturity of Lease Liabilities	Operating Leases
2020	$	18,449
2021	15,070
2022	10,647
2023	8,894
2024	7,037
Thereafter	44,284
Total lease payments	104,381
Less: Imputed interest	(19,218)
Present value of lease liabilities	$	85,163