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LEASE COMMITMENTS

12 Months Ended

Dec. 31, 2019

NOTE 8 LEASE COMMITMENTS

We lease certain warehouse, plant, and office facilities as well as certain equipment under noncancelable operating and finance leases expiring at various dates through the year 2032. Most of the operating leases contain renewal options and certain leases include options to purchase the related asset during or at the end of the lease term.

Amortization expense related to finance leases is included in depreciation expense while rent expense related to operating leases is included within cost of sales and selling research & development and administrative expenses (“SG&A”). Rent expense related to operating leases (including taxes, insurance and maintenance when included in the rent) amounted to $32.7 million in 2018 under the old lease accounting standard.

The components of lease expense for the current period were as follows:


Year Ended December 31,	2019
Operating lease cost	$	23,410

Finance lease cost:
Amortization of right-of-use assets	$	4,217
Interest on lease liabilities		1,353
Total finance lease cost	$	5,570

Short-term lease and variable lease costs	$	8,629

Supplemental cash flow information related to leases was as follows:


Year Ended December 31,	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	21,872
Operating cash flows from finance leases		1,245
Financing cash flows from finance leases		4,730

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	15,226
Finance leases		15,957

Supplemental balance sheet information related to leases was as follows:


	December 31, 2019
Operating Leases
Operating lease right-of-use assets	$	72,377

Accounts payable, accrued and other liabilities	$	16,578
Operating lease liabilities		55,276
Total operating lease liabilities	$	71,854

Finance Leases
Property, plant and equipment, gross	$	47,020
Accumulated depreciation		(4,271)
Property, plant and equipment, net	$	42,749

Current maturities of long-term obligations, net of unamortized debt issuance cost	$	4,318
Long-term obligations, net of unamortized debt issuance cost		25,634
Total finance lease liabilities	$	29,952

Weighted Average Remaining Lease Term (in years)
Operating leases		6.1
Finance leases		7.0

Weighted Average Discount Rate
Operating leases		5.05	%
Finance leases		5.13	%

Maturities of lease liabilities as of December 31, 2019, were as follows:


	Operating		Finance
	Leases		Leases
Year 1	$	19,652	$	5,655
Year 2		15,411		4,787
Year 3		10,740		3,870
Year 4		9,365		3,099
Year 5		6,998		2,658
Thereafter		22,331		18,051
Total lease payments		84,497		38,120
Less imputed interest		(12,643)		(8,168)
Total	$	71,854	$	29,952

Maturities of lease liabilities as of December 31, 2018 under the old lease accounting standard were as follows:


	Operating		Capital
	Leases		Leases
Year 1	$	26,512	$	1,828
Year 2		21,386		1,653
Year 3		16,529		1,546
Year 4		12,549		1,160
Year 5		10,225		880
Thereafter		21,932		3,827
Total lease payments	$	109,133		10,894
Less imputed interest				(2,541)
Present value of future lease payments			$	8,353

As of December 31, 2019, we have additional operating and finance leases, primarily for buildings, that have not yet commenced of $1.8 million. These operating and finance leases will commence in 2020 with lease terms of 3 to 10 years.