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Leases | 9 Months Ended
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Sep. 30, 2019
Leases [Abstract] |
Leases | Leases The Company leases certain manufacturing facilities, retail stores, warehouses, distribution centers, office space, land, and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. As most of the Company's leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Some leases include one or more options to renew, with renewal terms that can extend the lease term from one to 20 years or more. The exercise of lease renewal options is at the Company’s sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain lease agreements include rental payments that are variable based on usage or are adjusted periodically for inflation. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Information on the Company’s leases is summarized as follows (in thousands):
| Classification |  | September 30, 2019
Assets |  |  |
Operating lease assets | Operating lease assets |  | $ | 107,906 |
Finance lease assets | Property and equipment, net (1) |  | 12,451 |
Total leased assets |  |  | $ | 120,357 |
Liabilities |  |  |
Current |  |  |
Operating lease liabilities | Current operating lease liabilities |  | $ | 34,179 |
Finance lease liabilities | Current portion of debt, finance lease obligations and notes payable |  | 1,229 |
Long-term |  |  |
Operating lease liabilities | Long-term operating lease liabilities |  | 76,390 |
Finance lease liabilities | Finance lease obligations |  | 14,840 |
Total lease liabilities |  |  | $ | 126,638 |
(1) Finance lease assets are recorded net of accumulated amortization of $7,024,000 as of September 30, 2019.
Lease Cost | Classification |  | Three months ended September 30, 2019 |  | Nine months ended September 30, 2019
Operating lease cost (1) | Operating expenses and cost of sales |  | $ | 10,779 |  |  | $ | 31,373 |
Finance lease cost |  |  |  |  |
Amortization of leased assets | Operating expenses and cost of sales |  | 364 |  |  | 1,108 |
Interest on lease liabilities | Interest expense |  | 207 |  |  | 660 |
Sublease income | Other (income) expense, net |  | (581 | ) |  | (1,737 | )
Total lease cost |  |  | $ | 10,769 |  |  | $ | 31,404 |
(1) Includes short-term leases and variable lease costs, which are immaterial.
Maturity of Lease Liabilities |  | Operating Leases (1) |  | Finance Leases |  | Total
2019 (remainder) |  | $ | 10,193 |  |  | $ | 518 |  |  | $ | 10,711 |
2020 |  | 35,027 |  |  | 2,075 |  |  | 37,102 |
2021 |  | 25,430 |  |  | 2,063 |  |  | 27,493 |
2022 |  | 17,561 |  |  | 2,026 |  |  | 19,587 |
2023 |  | 12,828 |  |  | 2,025 |  |  | 14,853 |
Thereafter |  | 17,793 |  |  | 11,790 |  |  | 29,583 |
Total lease payments |  | $ | 118,832 |  |  | $ | 20,497 |  |  | $ | 139,329 |
Less: interest |  | 8,263 |  |  | 4,428 |  |  |
Present value of lease payments |  | $ | 110,569 |  |  | $ | 16,069 |  |  |  |
(1) Operating lease payments include $3,594,000 related to options to extend lease terms that are reasonably certain of being exercised. Leases that the Company has signed but have not yet commenced are immaterial.
Lease Term and Discount Rate |  | September 30, 2019
Weighted-average remaining lease term (years) |  |
Operating leases |  | 4.36 |
Finance leases |  | 9.72 |
Weighted-average discount rate |  |
Operating leases |  | 3.34 | %
Finance leases |  | 5.17 | %
Other Information |  | Nine months ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities |  |
Operating cash flows from operating leases |  | $ | 31,538 |
Operating cash flows from finance leases |  | 651 |
Financing cash flows from finance leases |  | 935 |
Leased assets obtained in exchange for new operating lease liabilities |  | 18,562 |
Leases | Leases The Company leases certain manufacturing facilities, retail stores, warehouses, distribution centers, office space, land, and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. As most of the Company's leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Some leases include one or more options to renew, with renewal terms that can extend the lease term from one to 20 years or more. The exercise of lease renewal options is at the Company’s sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain lease agreements include rental payments that are variable based on usage or are adjusted periodically for inflation. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Information on the Company’s leases is summarized as follows (in thousands):
| Classification |  | September 30, 2019
Assets |  |  |
Operating lease assets | Operating lease assets |  | $ | 107,906 |
Finance lease assets | Property and equipment, net (1) |  | 12,451 |
Total leased assets |  |  | $ | 120,357 |
Liabilities |  |  |
Current |  |  |
Operating lease liabilities | Current operating lease liabilities |  | $ | 34,179 |
Finance lease liabilities | Current portion of debt, finance lease obligations and notes payable |  | 1,229 |
Long-term |  |  |
Operating lease liabilities | Long-term operating lease liabilities |  | 76,390 |
Finance lease liabilities | Finance lease obligations |  | 14,840 |
Total lease liabilities |  |  | $ | 126,638 |
(1) Finance lease assets are recorded net of accumulated amortization of $7,024,000 as of September 30, 2019.
Lease Cost | Classification |  | Three months ended September 30, 2019 |  | Nine months ended September 30, 2019
Operating lease cost (1) | Operating expenses and cost of sales |  | $ | 10,779 |  |  | $ | 31,373 |
Finance lease cost |  |  |  |  |
Amortization of leased assets | Operating expenses and cost of sales |  | 364 |  |  | 1,108 |
Interest on lease liabilities | Interest expense |  | 207 |  |  | 660 |
Sublease income | Other (income) expense, net |  | (581 | ) |  | (1,737 | )
Total lease cost |  |  | $ | 10,769 |  |  | $ | 31,404 |
(1) Includes short-term leases and variable lease costs, which are immaterial.
Maturity of Lease Liabilities |  | Operating Leases (1) |  | Finance Leases |  | Total
2019 (remainder) |  | $ | 10,193 |  |  | $ | 518 |  |  | $ | 10,711 |
2020 |  | 35,027 |  |  | 2,075 |  |  | 37,102 |
2021 |  | 25,430 |  |  | 2,063 |  |  | 27,493 |
2022 |  | 17,561 |  |  | 2,026 |  |  | 19,587 |
2023 |  | 12,828 |  |  | 2,025 |  |  | 14,853 |
Thereafter |  | 17,793 |  |  | 11,790 |  |  | 29,583 |
Total lease payments |  | $ | 118,832 |  |  | $ | 20,497 |  |  | $ | 139,329 |
Less: interest |  | 8,263 |  |  | 4,428 |  |  |
Present value of lease payments |  | $ | 110,569 |  |  | $ | 16,069 |  |  |  |
(1) Operating lease payments include $3,594,000 related to options to extend lease terms that are reasonably certain of being exercised. Leases that the Company has signed but have not yet commenced are immaterial.
Lease Term and Discount Rate |  | September 30, 2019
Weighted-average remaining lease term (years) |  |
Operating leases |  | 4.36 |
Finance leases |  | 9.72 |
Weighted-average discount rate |  |
Operating leases |  | 3.34 | %
Finance leases |  | 5.17 | %
Other Information |  | Nine months ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities |  |
Operating cash flows from operating leases |  | $ | 31,538 |
Operating cash flows from finance leases |  | 651 |
Financing cash flows from finance leases |  | 935 |
Leased assets obtained in exchange for new operating lease liabilities |  | 18,562 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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