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Leases

9 Months Ended

Sep. 30, 2019

Leases:

The Company leases its offices and warehouses, vehicles, and certain office equipment, substantially all of which are classified as operating leases. The Company currently has no material financing leases. The Company determines if an arrangement is a lease at inception. Operating lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term.

In determining lease asset value, the Company considers fixed or variable payment terms, prepayments, incentives, and options to extend or terminate, depending on the lease. Renewal, termination or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. The Company generally uses its incremental borrowing rate based on information available at the lease commencement date for the location in which the lease is held in determining the present value of lease payments.

As of September 30, 2019, the weighted average remaining lease term was 6.6 years and the weighted average discount rate used to determine the operating lease liability was 2.9%. For the three and nine months ended September 30, 2019, expense related to operating leases was $1.7 million and $4.9 million, respectively. Operating lease payments included in operating cash flows totaled $4.5 million and noncash additions to operating lease assets totaled $33.9 million.

Maturities of lease liabilities subsequent to September 30, 2019 are as follows:

(In thousands)

Schedule of maturities of lease liabilities
2019	$	1,656
2020		5,747
2021		5,055
2022		4,530
2023		3,903
Thereafter		13,463
		34,354
Less imputed interest (based on 2.7%weighted-average discount rate)		(3,256	)
	$	31,098