Leases (Notes)

6 Months Ended

Jun. 30, 2019

Leases of Lessee Disclosure [Text Block]

Leases

Our leases principally relate to funeral service real estate and office, maintenance, and transportation equipment. The majority of our lease arrangements contain options to (i) purchase the property at fair value on the exercise date, (ii) purchase the property for a value determined at the inception of the lease, or (iii) renew the lease for the fair rental value at the end of the primary lease term.

Future lease payments for non-cancelable operating and finance leases as of June 30, 2019 was as follows:



	Operating			Finance			Total
	(In thousands)
2019 (excluding the six months ended June 30, 2019)	$	5,408		$	23,722		$	29,130
2020	11,343			43,681			55,024
2021	10,056			61,946			72,002
2022	8,928			25,721			34,649
2023	6,759			18,614			25,373
Thereafter	45,164			47,754			92,918
Total lease payments	$	87,658		$	221,438		$	309,096
Less: Interest	(23,051		)	(24,208		)	(47,259		)
Present value of lease liabilities	$	64,607		$	197,230		$	261,837

As of December 31, 2018, we disclosed the following future lease payments for non-cancelable operating and finance leases exceeding one year:



	Operating		Finance
	(In thousands)
2019	$	11,295	$	46,998
2020	9,550		51,943
2021	8,251		57,881
2022	7,282		21,842
2023	5,397		15,587
2024 and thereafter	37,841		40,447
Total	$	79,616	$	234,698
Less: Interest on finance leases			(22,746		)
Total principal payable on finance leases			$	211,952

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



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
	(In thousands)
Amortization of leased assets	$	10,348	$	21,312
Interest on lease liabilities	1,453		3,284
Total finance lease cost	11,801		24,596
Operating lease cost	3,074		6,268
Variable lease cost	420		792
Total lease cost	$	15,295	$	31,656

Supplemental balance sheet information as of June 30, 2019 related to leases was as follows:



Lease Type	Balance Sheet Classification	June 30, 2019
		(In thousands)
Operating lease right-of-use assets⁽¹⁾	Deferred charges and other assets	$	62,383
Finance lease right-of-use assets ⁽¹⁾	Property and equipment, net	190,889
Total right-of-use assets ⁽¹⁾		$	253,272

Operating	Accounts payable and accrued liabilities	$	8,472
Finance	Current maturities of long-term debt	39,940
Total current lease liabilities		48,412
Operating	Other liabilities	56,135
Finance	Long-term debt	157,290
Total non-current lease liabilities		213,425
Total lease liabilities		$	261,837


(1)	Right-of-use assets are presented net of accumulated amortization.

The weighted-average life remaining and discount rates of our leases as of June 30, 2019 were as follows:



	Operating		Finance
Weighted-average remaining lease term (years)	12.2		5.2
Weighted-average discount rate	4.7	%	3.5	%

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



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
	(In thousands)
Cash paid for amounts in the measurement of lease liabilities
Operating cash flows for operating leases	$	3,124	$	6,217
Operating cash flows for finance leases	1,773		3,721
Financing cash flows for finance leases	11,163		21,820
Total cash paid for amounts included in the measurement of lease liabilities	$	16,060	$	31,758

Right-of-use assets obtained in exchange for new finance lease liabilities	$	15,308	$	34,474
Right-of-use assets obtained in exchange for new operating lease liabilities	$	2,125	$	6,365

We have 64 operating leases where we are the lessor and the non-cancelable term is greater than one year, resulting in $0.7 million and $1.4 million in lease income for the three and six months ended June 30, 2019. We lease office space and excess land, and we are party to cellular agreements and land easements. We generally do not have sales-type leases, direct financing leases, or lease receivables. The adoption of ASC 842 did not have an impact on our accounting for lessor leases. Future undiscounted lease income from operating leases as of June 30, 2019 were as follows (in thousands):



2019 (excluding the six months ended June 30, 2019)	$	1,341
2020	1,772
2021	1,417
2022	1,092
2023	504
Thereafter	243
Total cash receipts	$	6,369