Leases

6 Months Ended

Jun. 30, 2020

We have operating leases for our corporate and division offices, production facilities, model homes, and certain office and production equipment. Additionally, we have finance leases for production equipment which are recorded in homebuilding "Property, plant and equipment, net" and "Accrued expenses and other liabilities" on the accompanying condensed consolidated balance sheets. Our leases have remaining lease terms of up to 19 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the lease.

We recognize operating lease expense on a straight-line basis over the lease term. We have elected to use the portfolio approach for certain equipment leases which have similar lease terms and payment schedules. Additionally, for certain equipment we account for the lease and non-lease components as a single lease component. Our sublease income is de minimis.

We have certain leases, primarily the leases of model homes, which have initial lease terms of twelve months or less ("Short-term leases"). We elected to exclude these leases from the recognition requirements under Topic 842, and these leases have not been included in our recognized ROU assets and lease liabilities.

The components of lease expense were as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Lease expense
Operating lease expense	$	7,942	$	8,387	$	15,853	$	15,947
Finance lease expense:
Amortization of ROU assets	281		21		547		21
Interest on lease liabilities	51		5		100		5
Short-term lease expense	6,185		5,640		12,611		11,245

Total lease expense	$	14,459	$	14,053	$	29,111	$	27,218

Other information related to leases was as follows:


	Three Months Ended June 30,							Six Months Ended June 30,
	2020		2019		2020			2019
Supplemental cash flows information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,676	$	6,314	$	13,394		$	12,877
Operating cash flows from finance leases	51		5		100			5
Financing cash flows from finance leases	212		12		412			12

ROU assets obtained in exchange for lease obligations:
Operating leases	$	1,901	$	3,571	$	5,685		$	9,551
Finance leases	$	—	$	4,692	$	440		$	5,227


					June 30, 2020			December 31, 2019
Weighted-average remaining lease term (in years):
Operating leases					5.0			5.1
Finance leases					6.2			6.6

Weighted-average discount rate:
Operating leases					3.5		%	3.6		%
Finance leases					2.8		%	2.8		%

Leases

The components of lease expense were as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Lease expense
Operating lease expense	$	7,942	$	8,387	$	15,853	$	15,947
Finance lease expense:
Amortization of ROU assets	281		21		547		21
Interest on lease liabilities	51		5		100		5
Short-term lease expense	6,185		5,640		12,611		11,245

Total lease expense	$	14,459	$	14,053	$	29,111	$	27,218

Other information related to leases was as follows:


	Three Months Ended June 30,							Six Months Ended June 30,
	2020		2019		2020			2019
Supplemental cash flows information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,676	$	6,314	$	13,394		$	12,877
Operating cash flows from finance leases	51		5		100			5
Financing cash flows from finance leases	212		12		412			12

ROU assets obtained in exchange for lease obligations:
Operating leases	$	1,901	$	3,571	$	5,685		$	9,551
Finance leases	$	—	$	4,692	$	440		$	5,227


					June 30, 2020			December 31, 2019
Weighted-average remaining lease term (in years):
Operating leases					5.0			5.1
Finance leases					6.2			6.6

Weighted-average discount rate:
Operating leases					3.5		%	3.6		%
Finance leases					2.8		%	2.8		%