Leases

6 Months Ended

Jun. 30, 2019

12. Leases

The Company leases certain fulfillment centers and office space in the various countries in which it operates. The lease agreements do not contain any residual value guarantees or material restrictive covenants.

Supplemental balance sheet information related to leases was as follows (in thousands):


		June 30,
		2019
Operating Leases
Operating lease right-of-use assets	$	157,843

Operating lease liabilities	$	161,512

Finance Leases
Property and equipment, at cost		12,377
Accumulated depreciation		(638)
Property and equipment, net	$	11,739

Loans payable and other financial liabilities	$	10,080

The following table summarizes the weighted average remaining lease term and the weighted average incremental borrowing rate for operating and finance leases at June 30, 2019:


Weighted average remaining lease term
Operating leases	9	Years
Finance leases	4	Years


Weighted average discount rate (*)
Operating leases	10.6	%
Finance leases	27.5	%

(*) Includes discount rates of leases in local currency and U.S dollar.
‎

The components of lease expense were as follows (in thousands):


		June 30,
		2019

Operating lease cost	$	13,874

Finance lease cost:
Depreciation of property and equipment		584
Interest on lease liabilities		489
Total finance lease cost	$	1,073

Supplemental cash flow information related to leases was as follows (in thousands):


		Six months ended
		June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	10,219
Financing cash flows from finance leases		889


Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	43,018
Finance leases		3,355

The following table summarizes the fixed, future minimum rental payments, excluding variable costs, which are discounted by the Company’s incremental borrowing rates to calculate the lease liabilities for the operating and finance leases (in thousands):


Period Ending June 30, 2019		Operating Leases		Finance Leases
One year or less	$	29,836	$	4,716
One year to two years		28,994		4,266
Two years to three years		28,369		4,266
Three years to four years		26,600		4,021
Four years to five years		24,932		1,417
Thereafter		114,372		—
Total lease payments	$	253,103	$	18,686
Less imputed interest		(91,591)		(8,606)
Total	$	161,512	$	10,080