LEASES

The Company adopted ASC 842 "Leases" with an effective date of January 1, 2019. The operating lease right-of-use asset was $92.7 million, and the lease liability was $93.5 million at inception. The Company elected the practical expedients package under ASC 842 and accordingly did not reassess any previously expired or existing arrangements, and related classification under ASC 840.

The Company's operating leases primarily comprise real estate and vehicles. Real estate leases are largely related to sales and marketing, service and administrative offices, while vehicle leases are primarily related to the Company's field sales and service organization. The consolidated balance sheet included the following balances as of March 31, 2019:



	March 31, 2019		Balance Sheet Location
Right-of-use assets, net	$	86,547	Other non-current assets

Current lease liability	$	26,210	Accrued and other liabilities
Non-current lease liability	60,626		Other non-current liabilities
Total operating lease liability	$	86,836

The lease right-of-use asset, net increased total assets as of March 31, 2019 for U.S. Operations by $35.4 million, Swiss Operations by $1.0 million, Western European Operations by $21.9 million, Chinese Operations by $3.5 million, Other by $22.8 million, and Eliminations and Corporate by $1.9 million.

As of March 31, 2019, the Company has entered into additional real estate operating leases of $5.2 million that are expected to commence in 2019.

For the three months ended March 31, 2019 the Company had the following recorded in selling, general and administrative:



	2019
Operating lease expense	$	8,217
Variable lease expense	925
Short-term lease expense	391
Total lease expense	$	9,533

Weighted average remaining lease term	6.8 years
Weighted average discount rate	3.0		%

Accruals and other on the Consolidated Statement of Cash Flows includes the amortization of the lease right-of-use asset of $7.6 million, offset by a change in the lease liability of $8.1 million for the three months ended March 31, 2019. Lease payments within operating activities was $8.4 million for the three months ended March 31, 2019. The Company also had non-cash lease right-of-use assets in exchange for lease liabilities of $1.9 million for the three months ended March 31, 2019.

The following is a maturity analysis of the annual undiscounted cash flows for the annual periods ended March 31:



2020	$	28,406
2021	20,678
2022	13,011
2023	7,714
2024	4,443
Thereafter	22,986
Total lease payments	97,238
Less imputed interest	(10,402		)
Total operating lease liability	$	86,836

The future minimum lease payments under non-cancellable leases as of December 31, 2018:



2019	$	32,113
2020	23,771
2021	16,986
2022	9,855
2023	7,435
Thereafter	5,081
Total lease payments	$	95,241