Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

(5) Leases

We have various lease agreements for our facilities, equipment and vehicles with remaining lease terms ranging from one to seventeen years. We determine if an arrangement contains a lease at inception. Some leases include the options to purchase, terminate or extend for one or more years; these options are included in the ROU asset and liability lease term when it is reasonably certain an option will be exercised. Our leases do not contain any material residual value guarantees or material restrictive covenants.

Most of our leases do not provide an implicit rate, therefore we use our incremental borrowing rate based on the information available at the commencement date to determine the present value of the future lease payments.

Certain of our leases include variable costs. Variable costs include non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the ROU asset recorded on the balance sheet was determined based upon factors considered at the commencement date, subsequent changes in the rate or index that were not contemplated in the ROU asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term.

Components of lease cost (income) were as follows:

(in thousands)	Year Ended December 31, 2019
Operating lease cost	$	14,743
Finance lease cost - amortization expense	737
Finance lease cost - interest expense	477
Short-term lease cost	114
Variable lease cost	245
Sublease income	(84)
Total	$	16,232

Rent expense for the years ended December 31, 2018 and 2017, accounted for under the previous guidance at ASC 840 Leases, was $15,809 and $14,899, respectively.

Balance sheet classifications at December 31, 2019 are summarized below:

	December 31, 2019
(in thousands)	Right of use assets		Current right of use liabilities		Long-term right of use liabilities
Operating Leases	$	28,571	$	9,231	$	24,835
Finance Leases	8,319		338		10,567
Total	$	36,890	$	9,569	$	35,402

Our future minimum lease payments as of December 31, 2019 under operating lease and finance leases, with initial or remaining lease terms in excess of one year, were as follows:

	December 31, 2019
(in thousands)	Operating Leases		Finance Leases
Years ending December 31:
2020	$	11,013	$	965
2021	7,611		1,473
2022	6,295		1,475
2023	5,341		1,469
2024	3,817		1,420
Thereafter	6,728		8,242
Total lease payments	40,805		15,044
Less: imputed interest	(6,739)		(4,139)
Present value of lease liabilities	$	34,066	$	10,905

Supplemental cash flow information related to our operating leases for the period ending December 31, 2019, was as follows:

(in thousands)	December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	$	15,602
Operating cash outflow from finance leases	$	456
Financing cash outflow from finance leases	$	725

Weighted-average remaining lease terms and discount rate for our operating leases for the period ending December 31, 2019, were as follows:

	December 31, 2019
	Operating		Financing
Weighted-average remaining lease term	5.3 years		10.4 years
Weighted-average discount rate	6.49	%	6.03	%

Leases

(5) Leases

We have various lease agreements for our facilities, equipment and vehicles with remaining lease terms ranging from one to seventeen years. We determine if an arrangement contains a lease at inception. Some leases include the options to purchase, terminate or extend for one or more years; these options are included in the ROU asset and liability lease term when it is reasonably certain an option will be exercised. Our leases do not contain any material residual value guarantees or material restrictive covenants.

Most of our leases do not provide an implicit rate, therefore we use our incremental borrowing rate based on the information available at the commencement date to determine the present value of the future lease payments.

Certain of our leases include variable costs. Variable costs include non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the ROU asset recorded on the balance sheet was determined based upon factors considered at the commencement date, subsequent changes in the rate or index that were not contemplated in the ROU asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term.

Components of lease cost (income) were as follows:

(in thousands)	Year Ended December 31, 2019
Operating lease cost	$	14,743
Finance lease cost - amortization expense	737
Finance lease cost - interest expense	477
Short-term lease cost	114
Variable lease cost	245
Sublease income	(84)
Total	$	16,232

Rent expense for the years ended December 31, 2018 and 2017, accounted for under the previous guidance at ASC 840 Leases, was $15,809 and $14,899, respectively.

Balance sheet classifications at December 31, 2019 are summarized below:

	December 31, 2019
(in thousands)	Right of use assets		Current right of use liabilities		Long-term right of use liabilities
Operating Leases	$	28,571	$	9,231	$	24,835
Finance Leases	8,319		338		10,567
Total	$	36,890	$	9,569	$	35,402

Our future minimum lease payments as of December 31, 2019 under operating lease and finance leases, with initial or remaining lease terms in excess of one year, were as follows:

	December 31, 2019
(in thousands)	Operating Leases		Finance Leases
Years ending December 31:
2020	$	11,013	$	965
2021	7,611		1,473
2022	6,295		1,475
2023	5,341		1,469
2024	3,817		1,420
Thereafter	6,728		8,242
Total lease payments	40,805		15,044
Less: imputed interest	(6,739)		(4,139)
Present value of lease liabilities	$	34,066	$	10,905

Supplemental cash flow information related to our operating leases for the period ending December 31, 2019, was as follows:

(in thousands)	December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	$	15,602
Operating cash outflow from finance leases	$	456
Financing cash outflow from finance leases	$	725

Weighted-average remaining lease terms and discount rate for our operating leases for the period ending December 31, 2019, were as follows:

	December 31, 2019
	Operating		Financing
Weighted-average remaining lease term	5.3 years		10.4 years
Weighted-average discount rate	6.49	%	6.03	%