Leases

6 Months Ended

Jun. 30, 2019



14.	Leases

We have operating leases for buildings, primarily for office space. For building leases with terms greater than twelve months, we account for lease and non-lease components as a single lease component. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Short-term lease payments are recognized on a straight-line basis and variable short-term lease payments are recognized in the period in which the obligation is incurred. We determine whether or not a contract contains a lease at inception of the contract. Many of our lease agreements contain renewal or termination clauses that we factor into our determination of the lease term if we are reasonably certain to exercise any such options.

The following table presents supplemental balance sheet information related to our leases:



(In thousands)	Balance Sheet Location	June 30, 2019
Assets
Operating lease ROU assets	Other assets	$	71,848
Liabilities
Current operating lease liabilities	Other current liabilities	12,148
Non-current operating lease liabilities	Other liabilities	72,205
Total lease liabilities		$	84,353

The following table presents the weighted average remaining lease term and discount rate:



Operating leases	June 30, 2019
Weighted average remaining term (in years)	8.7
Weighted average discount rate	4.6	%

The following table presents the maturities of our lease liabilities:



(In thousands)	June 30, 2019
Remaining 2019	$	7,862
2020	15,205
2021	14,876
2022	13,361
2023	9,628
2024 and thereafter	42,661
Total lease payments	$	103,593
Less: Imputed interest	19,240
Total lease obligations	$	84,353
Less: Current portion of lease obligations	12,148
Long-term lease obligations	$	72,205

In addition to the total lease obligations presented in the table above, we have a 14 year building operating lease with undiscounted payment obligations of $30.0 million that is expected to commence during 2020.

We recognized $5.0 million and $9.0 million of operating lease expense during the three and six months ended June 30, 2019, which includes immaterial short-term leases and variable lease costs. These amounts are classified as general and administrative expense on our statements of income.

The following table presents supplemental cash flow and other information related to our leases:



(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	$	8,176
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	9,356