The Company adopted the new standard on January 1, 2019 and used the effective date as the date of initial application. Therefore, prior period financial information has not been adjusted and continues to be reflected in accordance with the Company’s historical accounting policy. The standard establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months.

The standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients,” which, among other things, allows the Company to carry forward its historical lease classification.

The adoption of this standard resulted in the recording of operating lease assets and operating lease liabilities of approximately $100.0 million as of January 1, 2019, with no related impact on the Company’s condensed consolidated statement of equity or condensed consolidated statement of operations. Short-term leases have not been recorded on the balance sheet.

The Company determines if an arrangement is a lease at inception. All of the Company’s leases are operating leases and are included in ROU assets, accounts payable and operating lease liabilities in the condensed consolidated balance sheet.

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligations to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the respective lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company’s lease terms may include options to extend or terminate the lease.

The Company’s operating leases are primarily for real estate, machinery and equipment, and vehicles. The terms and conditions for these leases vary by the type of underlying asset. Total operating lease expense was as follows (in thousands):



	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Long-term fixed lease expense	$	10,105	$	29,433
Long-term variable lease expense		400		1,640
Short-term lease expense		3,355		13,356
Total operating lease expense	$	13,860	$	44,429

For the three and nine months ended September 30, 2018, total operating lease expense was $13.5 million and $40.4 million, respectively.



	September 30, 2019
Operating lease ROU assets	$	96,190

Accrued expenses	$	26,368
Operating lease liabilities		76,255
Total operating lease liabilities	$	102,623

Cash paid for operating leases	$	26,242
ROU assets obtained in exchange for lease obligations	$	21,045

Weighted average remaining lease term		9 years
Weighted average discount rate		6.75%

Maturities of operating lease liabilities at September 30, 2019 are as follows (in thousands):



Remainder of 2019	$ 8,976
2020	30,144
2021	22,142
2022	13,955
2023	10,258
Thereafter	54,745
Total lease payments	140,220
Less imputed interest	(37,597)
Total	$ 102,623