Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
We lease certain office space and equipment for use in our operations. We assess each of these contracts to determine whether the arrangement contains a lease as defined by ASC 842, Leases ("ASC 842"). In order to meet the definition of a lease under ASC 842, the contractual arrangement must convey to us the right to control the use of an identifiable asset for a period of time in exchange for consideration. We recognize lease expense for these leases on a straight-line basis over the lease term and combine lease and non-lease components for all leases. Some of our leases contain renewal options and in accordance with ASC 842, our lease terms include those renewals only to the extent that they are reasonably certain to be exercised. The exercise of these lease renewal options is generally at our discretion. In accordance with ASC 842, the lease liability is equal to the present value of the remaining lease payments while the ROU asset is based on the lease liability, subject to adjustment, such as for lease incentives. Our leases do not provide a readily determinable implicit interest rate and therefore, we must estimate our incremental borrowing rate. In determining our incremental borrowing rate, we consider the lease period, market interest rates, current interest rates on our senior notes and the effects of collateralization.
Our lease population at December 31, 2019 is comprised of operating leases where we are the lessee and these leases are primarily real estate for office space for our corporate office, division offices and design centers, in addition to leases of certain equipment. As allowed by ASC 842, we adopted an accounting policy election to not record leases with lease terms of twelve months or less on the consolidated balance sheet.
Lease cost included in our consolidated income statements in General and administrative expenses and Commissions and other sales costs is in the table below (in thousands). Our short-term lease costs and sublease income are de minimis.
Twelve Months Ended December 31, 2019
Operating lease expense $ 6,981   
Non-cash lease expense $ 5,418   
Cash payments on lease liabilities $ 8,058   
ROU assets obtained in exchange for new operating lease obligations $ 11,471   
ROU assets are classified within Prepaids, other assets and goodwill on our consolidated balance sheet, while lease liabilities are classified within Accrued liabilities on our consolidated balance sheet. The following table contains additional information about our leases (dollars in thousands):
At December 31, 2019
ROU assets $ 26,332   
Lease liabilities $ 34,231   
Weighted-average remaining lease term 4.8 years
Weighted-average discount rate (incremental borrowing rate) 4.53  %

Maturities of our operating lease liabilities as of December 31, 2019 are as follows (in thousands):
Year ended December 31,
2020 8,642   
2021 8,261   
2022 7,757   
2023 6,555   
2024 3,760   
Thereafter 3,841   
Total payments 38,816   
Less: imputed interest (4,585)  
Present value of lease liabilities $ 34,231