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LEASES | 6 Months Ended
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Jun. 30, 2019
LEASES | NOTE D — LEASES The Company adopted ASC 842 as of January 1, 2019, using the cumulative effective adjustment method wherein the Company applied the new leases standard at the adoption date. Accordingly, all periods prior to January 1, 2019 were presented in accordance with the previous ASC Topic 840 – Leases , and no retrospective adjustments were made to the comparative periods presented. Adoption of ASC 842 resulted in an increase to total assets and liabilities due to the recording of operating lease ROU assets and operating lease liabilities of approximately $90.9 million and $104.4 million, respectively, as of January 1, 2019. Finance leases are not material to the Company and were not impacted by the adoption of ASC 842, as finance lease liabilities and the corresponding assets were already recorded in the balance sheet under the previous guidance, ASC 840. The adoption did not materially impact the Company’s condensed consolidated statements of operations or cash flows. The Company has operating leases for corporate offices, distribution facilities, manufacturing plants, and certain vehicles. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company has elected the practical expedient to account for each separate lease component of a contract and its associated non-lease components as a single lease component, thus causing all fixed payments to be capitalized. The Company also elected the package of practical expedients permitted within the new standard, which among other things, allows the Company to carry forward historical lease classification. Variable lease payment amounts that cannot be determined at the commencement of the lease, such as increases in lease payments based on changes in index rates or usage, are not included in the ROU assets or liabilities. These are expensed as incurred and recorded as variable lease expense. ROU assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the commencement date based on the net present value of fixed lease payments over the lease term. The Company’s lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. ROU assets also include any advance lease payments. As most of the Company’s operating leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The components of lease costs for the three and six months ended June 30, 2019 were as follows (in thousands):
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, 2019 |  |  | June 30, 2019 |
Operating lease costs: |  |  |  |  |  |  |  |
Fixed |  | $ | 4,907 |  |  | $ | 9,131 |
Total |  | $ | 4,907 |  |  | $ | 9,131 |
Supplemental cash flow information for the three and six months ended June 30, 2019 was as follows (in thousands):
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, 2019 |  |  | June 30, 2019 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |
Operating cash flows for operating leases |  | $ | 4,295 |  |  | $ | 7,975 |
Total |  | $ | 4,295 |  |  | $ | 7,975 |
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, 2019 |  |  | June 30, 2019 |
Right-of-use assets obtained in exchange for new lease obligations: |  |  |  |  |  |  |  |
Operating leases |  | $ | 20,991 |  |  | $ | 115,488 |
Total |  | $ | 20,991 |  |  | $ | 115,488 |
The aggregate future lease payments for operating leases as of June 30, 2019 were as follows (in thousands):
|  | Operating |
2019 (excluding the six months ending June 30, 2019) |  | $ | 9,952 |
2020 |  |  | 17,461 |
2021 |  |  | 17,102 |
2022 |  |  | 17,178 |
2023 |  |  | 17,343 |
Thereafter |  |  | 88,825 |
Total lease payments |  |  | 167,861 |
Less: Interest |  |  | (42,068 | )
Present value of lease liabilities |  | $ | 125,793 |
Average lease terms and discount rates were as follows:
|  | June 30, 2019 |
Weighted-average remaining lease term (years) |  |  |  |
Operating leases |  |  | 9.6 |
Weighted-average discount rate |  |  |  |
Operating leases |  |  | 6.2 | %

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + 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 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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Period Type: | duration