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LEASES (Tables)

3 Months Ended

Mar. 31, 2019

The components of lease income were as follows:



	Three months ended March 31,
	2019		2018
	(In thousands)
Operating leases
Lease income related to lease payments	$	360,309	334,367
Lease income related to commercial rental ⁽¹⁾	219,171		194,466

Sales type leases
Interest income related to net investment in leases	11,456		9,797

Variable lease income excluding commercial rental ⁽¹⁾	55,439		52,227

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(1)	Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% to 25% of total commercial rental income based on management's internal estimates.

The components of net investment in sales-type leases were as follows:



	March 31, 2019		December 31, 2018
	(In thousands)
Net investment in the lease — lease payment receivable	$	514,531	505,057
Net investment in the lease — unguaranteed residual assets	46,828		46,209
	$	561,359	551,266

Schedule of Lease Income - Sales Type

The components of lease income were as follows:



	Three months ended March 31,
	2019		2018
	(In thousands)
Operating leases
Lease income related to lease payments	$	360,309	334,367
Lease income related to commercial rental ⁽¹⁾	219,171		194,466

Sales type leases
Interest income related to net investment in leases	11,456		9,797

Variable lease income excluding commercial rental ⁽¹⁾	55,439		52,227

————————————


(1)	Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% to 25% of total commercial rental income based on management's internal estimates.

The components of net investment in sales-type leases were as follows:



	March 31, 2019		December 31, 2018
	(In thousands)
Net investment in the lease — lease payment receivable	$	514,531	505,057
Net investment in the lease — unguaranteed residual assets	46,828		46,209
	$	561,359	551,266

————————————

Note: The net investment in the sales-type lease shown above are included in "Accounts receivables, net" and "Sales-type leases and other assets" in the Consolidated Condensed Balance Sheets.

Schedule of Maturity of Sales-Type Lease Receivable

Maturities of sales-type lease receivables were as follows:



	March 31, 2019			December 31, 2018
	(In thousands)
2019 (excluding three months ended March 31, 2019)	$	103,957		133,557
2020	143,811			136,924
2021	121,433			114,983
2022	92,028			85,146
2023	58,175			52,161
Thereafter	91,033			78,935

Total undiscounted cash flows	610,437			601,706
Present value of lease payments (recognized as lease receivables)	(514,531		)	(505,057	)
Difference between undiscounted cash flows and discounted cash flows	95,906			96,649

Schedule of Maturity of Operating Lease Payments

Maturities of operating lease payments were as follows:



	March 31, 2019		December 31, 2018
	(In thousands)
2019 (excluding three months ended March 31, 2019)	$	936,560	1,159,851
2020	1,008,773		892,721
2021	756,134		646,008
2022	507,429		421,050
2023	319,320		249,255
Thereafter	291,636		203,632

Total undiscounted cash flows	$	3,819,852	3,572,517

Schedule of Lease Cost, Cash Flow Information, Lease Term, and Discount Rate

The components of lease expense were as follows:



		Three months ended March 31,
	Classification	2019			2018
		(In thousands)
Finance lease cost
Amortization of right-of-use assets	Other operating expenses, SG&A	$	7,788		5,143
Interest on lease liabilities	Interest expense	643			597
Operating lease cost	Other operating expenses, SG&A	23,218			19,687
Short-term lease and other	Other operating expenses, SG&A	1,124			982
Variable lease cost	Other operating expenses, SG&A	3,016			2,353
Sublease income	Cost of lease & related maintenance and rental, cost of services	(5,824		)	(6,364	)
Total lease cost		$	29,965		22,398



	March 31, 2019		December 31, 2018
	(In thousands)
Weighted-average remaining lease term
Operating	4 years		4 years
Finance	7 years		7 years
Weighted-average discount rate
Operating	3.7	%	3.7	%
Finance	8.3	%	8.0	%

Supplemental cash flow information related to leases was as follows:



	Three months ended March 31,
	2019		2018
	(In thousands)
Cash paid for amounts included in measurement of liabilities
Operating cash flows from finance leases	$	643	597
Operating cash flows from operating leases	22,974		19,303
Financing cash flows from finance leases	7,466		5,039
Right-of-use assets obtained in exchange for lease obligations:
Finance leases	2,418		2,006
Operating leases	16,605		16,908

Schedule of Leases, Assets and Liabilities

Supplemental balance sheet information relates to leases was as follows:



	Classification	March 31, 2019		December 31, 2018
		(In thousands)
Assets
Operating lease right-of-use assets	Sales-type leases and other assets	$	199,048	203,834
Finance lease assets	Operating property and equipment, net and revenue earning equipment, net	36,007		41,647

Total leased assets		$	235,055	245,481

Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	71,992	73,422
Finance	Short-term debt and current portion of long-term debt	11,256		14,543

Noncurrent
Operating	Other non-current liabilities	134,784		137,384
Finance	Long-term debt	32,446		32,909

Total lease liabilities		$	250,478	258,258

Schedule of Operating Lease Maturities

Maturities of lease liabilities were as follows:



	Operating Leases			Finance Leases		Total
	(In thousands)
2019 (excluding three months ended March 31, 2019)	$	61,234		10,527		71,761
2020	58,772			10,523		69,295
2021	39,367			8,790		48,157
2022	29,231			6,112		35,343
2023	14,302			3,786		18,088
Thereafter	20,022			13,688		33,710
Total lease payments	222,928			53,426		276,354
Less: Imputed Interest	(16,152		)	(9,724	)	(25,876	)
Present value of lease liabilities	$	206,776		43,702		250,478

Schedule of Finance Lease Maturities

Maturities of lease liabilities were as follows:



	Operating Leases			Finance Leases		Total
	(In thousands)
2019 (excluding three months ended March 31, 2019)	$	61,234		10,527		71,761
2020	58,772			10,523		69,295
2021	39,367			8,790		48,157
2022	29,231			6,112		35,343
2023	14,302			3,786		18,088
Thereafter	20,022			13,688		33,710
Total lease payments	222,928			53,426		276,354
Less: Imputed Interest	(16,152		)	(9,724	)	(25,876	)
Present value of lease liabilities	$	206,776		43,702		250,478