Leases

6 Months Ended

Jun. 30, 2020

The Company has operating and finance leases for regional offices, manufacturing facilities, retail centers, distribution centers and certain equipment. The Company’s leases have remaining lease terms of 1 year to 24 years, some of which include options to extend the leases for up to 20 years, and some of which include options to terminate the leases within 1 year.

As of June 30, 2020, the weighted average remaining lease term and weighted average discount rate for operating leases was 6.1 years and 4.7%.

The components of lease expense were as follows (U.S. dollars in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Operating lease cost	$	12,869		$	12,417		$	26,005		$	25,278
Variable lease cost		410			1,105			1,384			2,157
Short-term lease cost		95			52			140			104
Sublease income		(1,058	)		(1,575	)		(2,189	)		(3,168	)
Total lease expense	$	12,316		$	11,999		$	25,340		$	24,371

Supplemental cash flow information related to leases was as follows (U.S. dollars in thousands):

	Six Months Ended June 30,
	2020		2019
Operating cash outflow from operating leases	$	25,955	$	26,570
Right-of-use assets obtained in exchange for lease obligations	$	31,178	$	140,585

Maturities of lease liabilities were as follows (U.S. dollars in thousands):

Year Ending December 31,	Operating leases
2020	$	27,085
2021		46,780
2022		30,950
2023		21,409
2024		16,604
Thereafter		27,835
Total		170,663
Less: Finance charges		26,054
Total principal liability	$	144,609

The Company has additional lease liabilities of $28.2 million which have not yet commenced as of June 30, 2020, and as such, have not been recognized on the consolidated balance sheets.