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Leases (Notes)

12 Months Ended

Dec. 31, 2019

Leases

On January 1, 2019, the Company adopted ASU 2016-02 using the optional transition method. The Company has operating leases for certain facilities, equipment and autos. The existing operating leases expire at various dates through 2024, some of which include options to extend the leases for up to five years. The Company measures its lease liability as the present value of the lease payments to be made over the lease term, which are discounted using the Company’s incremental borrowing rate. The Company measures its ROU assets at the amount at which the lease liability is recognized plus initial direct costs incurred or prepayment amounts. The ROU assets are amortized on a straight-line basis over the lease term.

Finance Lease Obligations

During 2017, the Company entered into two to four-year lease agreements for certain office equipment with Cisco Systems Capital Corporation for a total of approximately $4.4 million, which was recorded in fixed assets as capital lease obligations. These capital lease obligations are included in current liabilities and other long-term liabilities in the accompanying consolidated balance sheets. The interest rates for these two capital leases are 2.89% and 3.50%, respectively, and the two leases will mature in May 2021 and July 2021, respectively.

The following table provides a summary of leases included on the consolidated balance sheets, consolidated statements of earnings, and consolidated statements of cash flows as of December 31, 2019:



	Consolidated Balance Sheets Line Item	At December 31, 2019
(in thousands)
Operating leases
Assets
Operating leases	Operating lease right-of-use assets	$	35,436
Liabilities
Operating-current	Accrued expenses and other current liabilities	$	7,392
Operating-noncurrent	Operating lease liabilities	27,930
Total operating lease liabilities		$	35,322
Finance leases
Assets
Property and equipment, gross	Property, plant and equipment, net	$	3,569
Accumulated amortization	Property, plant and equipment, net	(2,739		)
Property and equipment, net	Property, plant and equipment, net	$	830
Liabilities
Other current liabilities	Accrued expenses and other current liabilities	$	1,125
Other long-term liabilities	Deferred income tax and other long-term liabilities	386
Total finance lease liabilities		$	1,511

The components of lease expense were as follows:



	Consolidated Statements of Operations Line Item	Twelve Months Ended December 31, 2019
(in thousands)
Operating lease cost	General administrative expenses and cost of sales	$	9,234
Finance lease cost:
Amortization of right-of-use assets	General administrative expenses	$	872
Interest on lease liabilities	Interest expense, net	68
Total finance lease cost		$	940

Other information

Supplemental cash flow information related to leases is as follows:



	Twelve Months Ended December 31, 2019
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	8,988
Finance cash flows for finance leases	1,160
Operating right-of-use assets obtained in exchange for new lease liabilities
Operating leases	5,920

The following is a schedule, by years, of maturities for lease liabilities as of December 31, 2019:



(in thousands)	Operating Leases			Finance Leases
2020	$	9,425		$	1,160
2021	7,978			386
2022	5,834			—
2023	3,978			—
2024	3,275			—
Thereafter	11,563			—
Total lease payments	42,053			1,546
Less: Present value discount	(6,731		)	(35		)
Total lease liabilities	$	35,322		$	1,511

The following table summarizes the Company’s lease terms and discount rates as of December 31, 2019:



Weighted-average remaining lease terms (in years):
Operating leases	6.54
Finance leases	1.44
Weighted-average discount rate:
Operating leases	5.37	%
Finance leases	3.23	%

Lessee, Finance Leases [Text Block]