Leases

3 Months Ended

Mar. 31, 2020

(7) Leases

Accounting Policy for Leases

The Company determines if an arrangement is a lease at inception. All of the Company’s leases are operating leases and are included in right-of-use (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.

Overview

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 March 31,
	2020		2019
Long-term fixed lease expense	$	7,473	$	8,105
Long-term variable lease expense		124		87
Short-term lease expense		4,423		5,278
Total operating lease expense	$	12,020	$	13,470

Supplemental Balance Sheet and Cash Flows Information

Operating leases were as follows (in thousands):



	March 31, 2020		December 31, 2019
Operating lease ROU assets	$	76,533	$	80,906

Accrued expenses	$	20,509	$	21,072
Operating lease liabilities		57,948		62,354
Total operating lease liabilities	$	78,457	$	83,426

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

	Three Months Ended March 31,
	2020		2019
Cash paid for operating leases	$	7,757	$	8,742
ROU assets obtained in exchange for lease obligations	$	1,465	$	6,877

Maturities of operating lease liabilities at March 31, 2020 are as follows (in thousands):



Remainder of 2020	$	20,996
2021		21,966
2022		14,603
2023		10,996
2024		8,024
Thereafter		46,002
Total lease payments		122,587
Less imputed interest		44,130
Total	$	78,457