Adoption of New Lease Standard

We adopted the New Lease Standard on January 1, 2019 using the additional transition method described in Note 1 to these condensed consolidated unaudited financial statements. Results for reporting periods beginning on and after January 1, 2019 are presented under the New Lease Standard. Prior periods have not been restated. The New Lease Standard had a material impact on our consolidated balance sheet due to the recognition of

right-of-use

(“ROU”) assets and lease liabilities for operating leases, while accounting for finance leases remained substantially unchanged.

Practical Expedients

We elected the package of practical expedients

that

did not require us to reassess (1) whether existing contracts contain embedded leases, (2) the lease classification of existing leases, and (3) whether initial direct costs for existing leases would qualify for capitalization under the New Lease Standard. We also elected the practical expedients related to short-term leases and separating lease components from

non-lease

components for all underlying asset classes.

Operating and Finance Leases

We have operating leases for real property, vehicles and equipment, and finance leases primarily for vehicles. Operating leases are included in operating lease

right-of-use

assets, current portion of long-term obligations, and operating lease liabilities in our consolidated balance sheet. Finance leases are not considered significant to our consolidated balance sheet or consolidated statement of income. Finance lease ROU assets at September 30, 2019 of $2,960 are included in property and equipment, net in our condensed consolidated unaudited balance sheet. Finance lease liabilities at September 30, 2019 of $3,047 are included in current portion of

other

long-term obligations and other long-term obligations, net of current portion in our condensed consolidated unaudited balance sheet.

ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement dates of the respective leases in determining the present value of the applicable lease payments.

Operating lease ROU assets also include any lease

pre-payments

made and exclude lease incentives. Certain of our leases include variable payments, which are excluded from lease ROU assets and lease liabilities and

expensed as incurred. Our leases have remaining lease terms of

1-10

years, some of which include options to extend the leases for up to five years. The exercise of lease renewal options is at our sole discretion, and our lease ROU assets and liabilities reflect only the options we are reasonably certain that we will exercise. Certain real property lease agreements have lease and

non-lease

components, which are generally accounted for as a single lease component. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Lease payments for short-term leases, which are 12 months or less without a purchase option that is likely to be exercised, are recognized as lease cost on a straight-line basis over the lease term.

The components of operating lease expense were as follows:


	Quarter ended September 30, 2019			Nine months ended September 30, 2019
Lease cost	$	18,887		$	54,647
Short-term lease cost		2,489			7,098
Variable lease cost		216			531
Sublease income		(81	)		(162	)

Total operating lease cost	$	21,511		$	62,114

Supplemental balance sheet information related to operating leases were as follows:


September 30,	2019
ROU assets	$	225,366
Current portion of long-term obligations	$	66,403
Operating lease liabilities		157,503

Total operating lease liabilities	$	223,906


Weighted Average Remaining Lease Term (in years)		4.0 years
Weighted Average Discount Rate		4.54	%

Supplemental cash flow information related to operating l

ases were as follows:


Nine Months Ended September 30,	2019
Operating cash flows for the measurement of operating lease liabilities	$	55,214
Operating lease right-of-use assets obtained in exchange for operating lease obligations	$	274,366

At September 30, 2019, maturities of operating lease liabilities over each of the next five years and thereafter were as follows:


Remainder of 2019	$	19,553
2020		72,188
2021		59,390
2022		43,563
2023		28,167
Thereafter		23,617

Total lease payments		246,478
Less imputed interest		22,572

Total lease liability	$	223,906

At September 30, 2019, we had additional operating leases, primarily for real property, that had not yet commenced. Such leases had estimated future minimum rental commitments of approximately $1,600. These operating leases

subsequently

commence

on Octob

er 1,

2019 with lease terms of

five years

These undiscounted amounts are not included in the table above.

Prior to the adoption of the New Lease Standard, rental commitments on an undiscounted basis were approximately $219,300 at December 31, 2018 under

non-cancelable

operating leases and were payable as follows: $70,400 in 2019, $55,100 in 2020, $41,300 in 2021, $28,500 in 2022, $15,700 in 2023, and $8,300 thereafter.