Leases (Notes)

9 Months Ended

Sep. 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 September 30, 2019 was as follows:



	Operating			Finance			Total
	(In thousands)
2019 (excluding the nine months ended September 30, 2019)	$	2,488		$	12,045		$	14,533
2020	11,732			44,461			56,193
2021	10,270			63,019			73,289
2022	8,693			26,906			35,599
2023	6,410			19,556			25,966
Thereafter	45,277			48,136			93,413
Total lease payments	$	84,870		$	214,123		$	298,993
Less: Interest	(22,223		)	(22,693		)	(44,916		)
Present value of lease liabilities	$	62,647		$	191,430		$	254,077

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 nine months ended September 30, 2019 were as follows:



	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
	(In thousands)
Amortization of leased assets	$	10,474	$	31,786
Interest on lease liabilities	1,989		5,273
Total finance lease cost	12,463		37,059
Operating lease cost	3,151		9,419
Variable lease cost	201		993
Total lease cost	$	15,815	$	47,471

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



Lease Type	Balance Sheet Classification	September 30, 2019
		(In thousands)
Operating lease right-of-use assets⁽¹⁾	Deferred charges and other assets	$	60,046
Finance lease right-of-use assets ⁽¹⁾	Property and equipment, net	185,629
Total right-of-use assets ⁽¹⁾		$	245,675

Operating	Accounts payable and accrued liabilities	$	8,745
Finance	Current maturities of long-term debt	39,708
Total current lease liabilities		48,453
Operating	Other liabilities	53,902
Finance	Long-term debt	151,722
Total non-current lease liabilities		205,624
Total lease liabilities		$	254,077


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

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



	Operating		Finance
Weighted-average remaining lease term (years)	12.3		5.1
Weighted-average discount rate	4.6	%	3.5	%

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



	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
	(In thousands)
Cash paid for amounts in the measurement of lease liabilities
Operating cash flows for operating leases	$	3,140	$	9,357
Operating cash flows for finance leases	2,122		5,843
Financing cash flows for finance leases	10,438		32,258
Total cash paid for amounts included in the measurement of lease liabilities	$	15,700	$	47,458

Right-of-use assets obtained in exchange for new finance lease liabilities	$	9,115	$	43,589
Right-of-use assets obtained in exchange for new operating lease liabilities	$	3,083	$	9,448

We have 62 operating leases where we are the lessor and the non-cancelable term is greater than one year, resulting in $0.6 million and $2.0 million in lease income for the three and nine months ended September 30, 2019, respectively. 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 September 30, 2019 were as follows (in thousands):



2019 (excluding the nine months ended September 30, 2019)	$	598
2020	1,722
2021	1,364
2022	1,037
2023	470
Thereafter	230
Total cash receipts	$	5,421