LEASES

3 Months Ended

Mar. 31, 2020

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 condensed consolidated balance sheet.

In response to the COVID-19 pandemic, the Company has negotiated COVID-19-related rent concessions for several of its leased properties. The finalization of these concessions did not take place until after the period end date of March 31, 2020. Consistent with updated guidance from the FASB in April 2020, the Company is currently assessing the impact of the Question-And-Answer document, and will adopt the guidance in the second quarter of 2020, to the extent applicable. In addition, the Company continues to assess and hold ongoing conversations with landlords for various properties in seeking commercially reasonable lease concessions given the current environment.

The components of lease expense for the three months ended March 31, 2020 and 2019 were as follows (in thousands):


	Three Months Ended March 31,
	2020		2019
Operating lease expenses:
Fixed	$	4,814	$	4,224

Supplemental cash flow information for lease related liabilities and assets for the three months ended March 31, 2020 and 2019 was as follows (in thousands):


	Three Months Ended March 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	4,112	$	3,680


	Three Months Ended March 31,
	2020		2019
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	437	$	94,497

The aggregate future lease payments for operating leases as of March 31, 2020 were as follows (in thousands):


	Operating
2020 (excluding the three months ending March 31, 2020)	$	13,741
2021	17,787
2022	17,866
2023	17,866
2024	17,510
2025	17,516
Thereafter	54,088
Total lease payments	156,374
Less: Interest	(36,683)
Present value of lease payments	$	119,691

Average lease terms and discount rates were as follows:


	March 31, 2020
Operating leases:
Weighted-average remaining lease term (years)	8.8
Weighted-average discount rate	6.2	%