Quarterly report pursuant to Section 13 or 15(d)

Leases (Notes)

v3.19.2
Leases (Notes)
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Leases Leases
The Company has operating and finance leases for offices, warehouses, and certain equipment. The leases have remaining lease terms of one to eight years, some of which include options to extend the leases for up to ten years. The Company's leases do not have any residual value guarantees or any restrictions or covenants imposed by leases.

Components of lease cost were as follows (in thousands):
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2019
 
2019
Operating lease cost
$
1,659

 
$
3,424

Finance lease cost:


 


Amortization of right-of-use assets (principal payments)
100

 
265

Interest on lease liabilities
14

 
36

Short-term lease cost
13

 
51

Variable lease cost
356

 
1,240

Sublease income
(56
)
 
(89
)
Total lease cost
$
2,086

 
$
4,927

Supplemental cash flow information related to leases was as follows (in thousands):
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2019
 
2019
Cash paid for amounts included in the measurement of lease liabilities:


 
 
Operating cash flows from operating leases
$
3,265

 
$
6,757

Operating cash flows from finance leases
29

 
66

Financing cash flows from finance leases
100

 
265

Right-of-use assets obtained in exchange for lease obligations:


 
 
Operating leases
601

 
1,721

Finance leases
17

 
105



Supplemental balance sheet information related to leases was as follows (in thousands):
 
June 30, 2019
Operating Leases


Operating lease right-of-use assets
$
17,217

Current portion of operating lease liabilities
$
5,960

Operating lease liabilities
14,326

Total operating lease liabilities
$
20,286

 
 
Finance Leases
 
Property and equipment, gross
$
2,955

Accumulated amortization
1,637

Property and equipment, net
$
1,318

Accrued liabilities
$
483

Other liabilities
888

Total finance lease liabilities
$
1,371

 
 
Weighted Average Remaining Lease Term
 
Operating leases
4.1 years

Finance leases
3.2 years

Weighted Average Discount Rate
 
Operating leases
5.3
%
Finance leases
5.1
%


As of June 30, 2019, future minimum lease payments included in the measurement of lease liabilities on the consolidated balance sheet, for the following five fiscal years and thereafter, were as follows (in thousands):

Year ending December 31,
Operating Leases
 
Finance Leases
2019
$
6,849

 
$
529

2020
5,727

 
429

2021
4,337

 
340

2022
2,714

 
144

2023
2,049

 
24

Thereafter
1,283

 
2

Total lease payments
22,959

 
1,468

Less imputed interest
(2,673
)
 
(97
)
Total
$
20,286

 
$
1,371



As the Company elected to apply the provisions of Topic 842 on a prospective basis, the following comparative period disclosure is being presented in accordance with Topic 840. The future minimum commitments under the Company’s leases as of December 31, 2018 were as follows (in thousands):
Year ending December 31,
Operating Leases
2019
$
8,092

2020
6,951

2021
5,290

2022
3,423

2023
2,426

Thereafter
1,365

Total minimum lease payments
$
27,547


Leases Leases
The Company has operating and finance leases for offices, warehouses, and certain equipment. The leases have remaining lease terms of one to eight years, some of which include options to extend the leases for up to ten years. The Company's leases do not have any residual value guarantees or any restrictions or covenants imposed by leases.

Components of lease cost were as follows (in thousands):
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2019
 
2019
Operating lease cost
$
1,659

 
$
3,424

Finance lease cost:


 


Amortization of right-of-use assets (principal payments)
100

 
265

Interest on lease liabilities
14

 
36

Short-term lease cost
13

 
51

Variable lease cost
356

 
1,240

Sublease income
(56
)
 
(89
)
Total lease cost
$
2,086

 
$
4,927

Supplemental cash flow information related to leases was as follows (in thousands):
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2019
 
2019
Cash paid for amounts included in the measurement of lease liabilities:


 
 
Operating cash flows from operating leases
$
3,265

 
$
6,757

Operating cash flows from finance leases
29

 
66

Financing cash flows from finance leases
100

 
265

Right-of-use assets obtained in exchange for lease obligations:


 
 
Operating leases
601

 
1,721

Finance leases
17

 
105



Supplemental balance sheet information related to leases was as follows (in thousands):
 
June 30, 2019
Operating Leases


Operating lease right-of-use assets
$
17,217

Current portion of operating lease liabilities
$
5,960

Operating lease liabilities
14,326

Total operating lease liabilities
$
20,286

 
 
Finance Leases
 
Property and equipment, gross
$
2,955

Accumulated amortization
1,637

Property and equipment, net
$
1,318

Accrued liabilities
$
483

Other liabilities
888

Total finance lease liabilities
$
1,371

 
 
Weighted Average Remaining Lease Term
 
Operating leases
4.1 years

Finance leases
3.2 years

Weighted Average Discount Rate
 
Operating leases
5.3
%
Finance leases
5.1
%


As of June 30, 2019, future minimum lease payments included in the measurement of lease liabilities on the consolidated balance sheet, for the following five fiscal years and thereafter, were as follows (in thousands):

Year ending December 31,
Operating Leases
 
Finance Leases
2019
$
6,849

 
$
529

2020
5,727

 
429

2021
4,337

 
340

2022
2,714

 
144

2023
2,049

 
24

Thereafter
1,283

 
2

Total lease payments
22,959

 
1,468

Less imputed interest
(2,673
)
 
(97
)
Total
$
20,286

 
$
1,371



As the Company elected to apply the provisions of Topic 842 on a prospective basis, the following comparative period disclosure is being presented in accordance with Topic 840. The future minimum commitments under the Company’s leases as of December 31, 2018 were as follows (in thousands):
Year ending December 31,
Operating Leases
2019
$
8,092

2020
6,951

2021
5,290

2022
3,423

2023
2,426

Thereafter
1,365

Total minimum lease payments
$
27,547