Annual report pursuant to Section 13 and 15(d)

Operating Leases

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Operating Leases
12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
Operating Leases
4.
Operating Leases
The Company has operating leases for all of its facilities and autos. As of December 31, 2019, operating lease ROU assets were $111.1 million and the related accumulated amortization was $20.6 million.
The operating lease cost, included in selling, general and administrative expense in the consolidated statement of net and comprehensive income, consisted of the following (in thousands):
 
Year Ended
December 31, 2019
 
Operating lease cost:
   
 
Lease cost
(1)
  $
24,372
 
Variable lease cost
(2)
   
5,305
 
Sublease income
   
(305
)
         
  $
29,372
 
         
(1)
Includes short-term lease cost and ROU asset amortization.
(2)
Primarily relates to common area maintenance, property taxes, insurance, utilities and parking.
Maturities of lease liabilities consisted of the following (in thousands):
 
Year Ended
December 31,
 
2020
  $
21,262
 
2021
   
19,002
 
2022
   
14,887
 
2023
   
11,657
 
2024
   
9,660
 
Thereafter
   
12,773
 
         
Total future minimum lease payments
   
89,241
 
Less imputed interest
   
(8,324
)
         
Present value of operating lease liabilities
  $
80,917
 
         
Supplemental cash flow information and noncash activity related to the operating leases consisted of the following (in thousands):
 
Year Ended
December 31, 2019
 
Operating cash flow information:
   
 
Cash paid for amounts included in the measurement of operating lease liabilities
  $
 20,266
 
Noncash activity:
   
 
ROU assets obtained in exchange for operating lease liabilities
  $
 21,548
 
Tenant improvements owned by lessor related to ROU assets
(1)
  $
5,952
 
(1)
Reclassification from other assets current.
Additional noncash activity in connection with the adoption of the new lease standard on January 1, 2019 included recording of $76.7 million of ROU assets and operating lease liabilities, and reclassifying $7.8 million in prepaid rent and deferred rent to ROU assets.
Other information related to the operating leases consisted of the following:
 
December 31, 2019
 
Weighted average remaining operating lease term
   
5.04 years
 
Weighted average discount rate
   
3.8
%
As of the December 31, 2018, prior
t
o the adoption of the new leases standard, deferred rent totaled $5.6 million. The noncurrent portion is included in deferred rent and other liabilities and the current portion is included in accounts payable and other liabilities in the accompanying consolidated balance sheet as of December 31, 2018. Rental expense was $27.7 million and $25.6 million for the years ended December 31, 2018 and 2017, respectively, and is included in selling, general and administrative expense in the accompanying consolidated statements of net and comprehensive income.