Leases

3 Months Ended

Mar. 31, 2020

Note 8. Leases

We have operating and finance leases for our manufacturing facilities, warehouses, office space, automobiles, and certain equipment. Our leases have remaining lease terms of up to ten years, some of which may include one or more five-year renewal options. We have included the five-year renewal option for one of our leases in our operating lease payments as we concluded that it is reasonably certain that we will exercise the option. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Operating lease expense is recognized on a straight-line basis over the lease term. Finance leases are not material.

The following tables provide quantitative disclosures related to our operating leases (in thousands):

Balance Sheet Information	March 31, 2020			December 31, 2019
Assets
Operating lease right-of-use assets	$	34,292		$	36,020

Liabilities
Sundry payables and accrued expenses	$	8,593		$	8,739
Noncurrent operating lease liabilities		26,841			28,376
Total operating lease liabilities	$	35,434		$	37,115

Weighted Average Remaining Lease Term
Operating leases	5.5 Years			5.6 Years

Weighted Average Discount Rate
Operating leases		3.7	%		3.7	%

	Three Months Ended March 31,
Expense and Cash Flow Information	2020		2019
Lease Expense
Operating lease expense (a)	$	2,313	$	2,224

Supplemental Cash Flow Information
Cash paid for the amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,476	$	2,161
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	251	$	566

(a)

Excludes expenses of approximately $0.4 million and $0.5 million for the three months ended March 31, 2020 and 2019, respectively, related to non-lease components such as maintenance, property taxes, etc., and operating lease expense for leases with an initial term of 12 months or less, which is not material.

Minimum Lease Payments

At March 31, 2020, we are obligated to make minimum lease payments through 2028, under operating leases, which are as follows (in thousands):

2020	$	6,702
2021		8,325
2022		6,987
2023		5,675
2024		3,881
Thereafter		7,844
Total lease payments	$	39,414
Less: Interest		(3,980	)
Present value of lease liabilities	$	35,434