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Leases | 9 Months Ended
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Sep. 30, 2019
Leases [Abstract] |
Leases | NOTE H – Leases We have operating leases for offices, warehouses, and certain equipment. Our leases have remaining lease terms of 1 year to 14 years, some of which include options to extend the leases for up to 20 years. We determine if an arrangement is or contains a lease at lease inception. Our leases do not have any residual value guarantees or any restrictions or covenants imposed by lessors. We have lease agreements for real estate with lease and non-lease components, which are accounted for separately. The table below presents the operating lease assets and liabilities recognized on the condensed consolidated balance sheet as of September 30, 2019 (in thousands):
|  | September 30, 2019 |
Operating Lease Assets: |  |  |
Right-of use lease assets |  | $ | 183,524 |
Operating Lease Liabilities: |  |  |  |
Current lease liabilities |  | $ | 29,283 |
Non-current lease liabilities |  |  | 155,046 |
Total operating lease liabilities |  | $ | 184,329 |
Our leases generally do not provide an implicit rate, and therefore we used our incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease. We used incremental borrowing rates as of January 1, 2019 for operating leases that commenced prior to that date. The weighted average remaining lease term and weighted average discount rate for operating leases as of September 30, 2019 are:
|  | September 30, 2019 |
Weighted Average Remaining Lease Term |  |  |
Operating leases |  | 7.4 years |
Weighted Average Discount Rate |  |  |
Operating leases |  |  | 6.69 | %
The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable leases with terms of more than one year to the total lease liabilities recognized on the condensed consolidated balance sheet as of September 30, 2019 (in thousands):
|  | Operating Leases |
October 1, 2019 thru December 31, 2019 |  | $ | 10,273 |
2020 |  |  | 39,661 |
2021 |  |  | 37,238 |
2022 |  |  | 31,842 |
2023 |  |  | 25,292 |
Thereafter |  |  | 92,229 |
Total undiscounted future minimum lease payments |  |  | 236,535 |
Less: difference between undiscounted lease payments and discounted operating lease liabilities |  |  | (52,206 | )
Total operating lease liabilities |  | $ | 184,329 |
Certain of our lease agreements for retail stores include variable lease payments, generally based on sales volume. The variable portion of payments are not included in the initial measurement of the right-of-use asset or lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. Certain of our equipment lease agreements include variable lease costs, generally based on usage of the underlying asset (mileage, fuel, etc.). The variable portion of payments are not included in the initial measurement of the right-of-use asset or lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. Components of lease expense were as follows (in thousands):
|  | Three months ended September 30, 2019 |  |  | Nine months ended September 30, 2019 |
Operating lease cost |  | $ | 10,478 |  |  | $ | 31,171 |
Short-term lease cost |  |  | 30 |  |  |  | 70 |
Variable lease cost |  |  | 1,572 |  |  |  | 4,384 |
Total lease expense |  | $ | 12,080 |  |  | $ | 35,625 |
Supplemental cash flow information related to leases is as follows (in thousands):
|  | Nine months ended September 30, 2019 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases |  | $ | 30,130 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |
Operating leases |  | $ | 25,664 |

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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- References No definition available. + Details
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