Leases Leases

6 Months Ended

Jun. 30, 2019

10. Leases

On January 1, 2019, the Company adopted ASU 2016-02 using the optional transition method. The Company has operating leases for certain facilities, equipment and autos. The existing operating leases expire at various dates through 2023, some of which include options to extend the leases for up to 5 years. The Company measured the lease liability at the present value of the lease payments to be made over the lease term. The lease payments are discounted using the Company's incremental borrowing rate. The Company measured the right-of-use ("ROU") assets at the amount at which the lease liability is recognized plus initial direct costs incurred or prepayment amounts. The ROU assets are amortized on a straight-line basis over the lease term.

The following table provides a summary of leases included on the condensed consolidated balance sheets as of June 30, 2019:



	Condensed Consolidated Balance Sheets Line Item	Six Months Ended June 30,
(in thousands)		2019
Operating leases
Assets
Operating leases	Operating lease right-of-use assets	$	35,111
Liabilities
Operating - current	Accrued expenses and other current liabilities	$	6,647
Operating - noncurrent	Operating lease liabilities	28,164
Total operating lease liabilities		$	34,811

Finance leases
Assets
Property and equipment, gross	Property, plant and equipment, net	$	3,569
Accumulated amortization	Property, plant and equipment, net	(2,417		)
Property and equipment, net	Property, plant and equipment, net	$	1,152
Liabilities
Other current liabilities	Accrued expenses and other current liabilities	$	1,107
Other long-term liabilities	Deferred income tax and other long-term liabilities	1,047
Total finance lease liabilities		$	2,154

The components of lease expense were as follows:



	Condensed Consolidated Statements of Operations Line Item	Three Months Ended June 30,		Six Months Ended June 30,
(in thousands)		2019		2019
Operating lease cost	General administrative expenses and cost of sales	$	2,272	$	4,426

Finance lease cost:
Amortization of right-of-use assets	General administrative expenses	$	218	436
Interest on lease liabilities	Interest expense, net	18		38
Total finance lease		$	236	$	474

Other information

Supplemental cash flow information related to leases as follows:



	Three Months Ended June 30,		Six Months Ended June 30,
(in thousands)	2019		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	2,214	$	4,305
Finance cash flows for finance leases	290		580

Operating right-of-use assets obtained in exchange for lease obligations during the current period	1,718		2,211

The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2019:



(in thousands)	Operating Leases			Finance Leases
Remaining six months of 2019	$	4,517		$	580
2020	8,560			1,160
2021	6,985			479
2022	4,857			—
2023	3,433			—
Thereafter	13,640			—
Total lease payments	41,992			2,219
Less: Present value discount	(7,181		)	(65		)
Total lease liabilities	$	34,811		$	2,154

The following table summarizes the Company's lease terms and discount rates as of June 30, 2019:



Weighted-average remaining lease terms (in years):
Operating leases	6.92
Finance leases	1.93
Weighted-average discount rate:
Operating leases	5.37	%
Finance leases	3.22	%

Leases