LEASES

12 Months Ended

Dec. 31, 2019

Leases

LEASES

14.         LEASES

The Company leases certain buildings, vehicles, and equipment in order to reduce the risk associated with ownership. The Company elected the practical expedient approach permitted under ASC 842 not to include short-term leases with a duration of 12 months or less on the balance sheet. As of December 31, 2019 and 2018, all leases were classified as operating leases. Building leases generally carry terms of 5 to 10 years with annual rent escalations at fixed amounts per the lease. Vehicle leases generally carry a fixed term of one year with renewal options to extend the lease on a monthly basis resulting in lease terms up to 5 years depending on the class of vehicle. The exercise of renewal options is at the Company’s sole discretion. It is reasonably certain that the Company will exercise the renewal options on its vehicle leases. The measurement of right-of-use assets and liabilities for vehicle leases includes the fixed payments associated with such renewal periods. We separate lease and non-lease components of contracts. Our lease agreements do not contain any material variable payments, residual value guarantees, early termination penalties or restrictive covenants. As of December 31, 2019, the Company had no additional future obligations for leases that had not yet commenced.

The Company uses the rate implicit in the lease when available; however, most of our leases do not provide a readily determinable implicit rate. Accordingly, we estimate our incremental borrowing rate based on information available at lease commencement.

(dollars in thousands)
Lease Classification	Financial Statement Classification	Year Ended December 31, 2019
Short-term lease cost	Cost of services provided, Sales, general, and administrative expenses	$	351
Operating lease cost	Cost of services provided, Sales, general, and administrative expenses		77,412
Total lease expense		$	77,763
Other Information:
Weighted-average remaining lease term - operating leases			3.90	Yrs
Weighted-average discount rate - operating leases			3.94	%
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases		$	76,404
Operating lease right-of-use assets, net		$	200,727
Operating lease liabilities-current		$	66,117
Operating lease liabilities, less current portion		$	135,651

Lease Commitments

Future minimum lease payments, including assumed exercise of renewal options at December 31, 2019 were as follows:

(in thousands)	Operating Leases
2020	$	72,916
2021		58,344
2022		39,790
2023		21,550
2024		10,158
Thereafter		16,623
Total future minimum lease payments		219,381
Less: Amount representing interest		17,613
Total future minimum lease payments, net of interest	$	201,768