We have operating leases for: (i) real estate which include both office space and statement production and mailing facilities; (ii) our outsourced data center environment; and (iii) operating equipment. Our leases have remaining terms of up to nine years, some of which include options to extend the leases for up to an additional ten years. For leases commencing prior to 2019, we used the noncancelable term to calculate the related right-of-use asset and corresponding lease liability. The exercise of lease renewal options is at our sole discretion. Additionally, certain of our leases include payments that are adjusted periodically for inflation.

We have made an accounting policy election not to recognize on our balance sheet, leases with an initial term of twelve months or less, for any class of underlying asset. We have also made an election for real estate leases beginning in 2019 and later, not to separate the lease and non-lease components, but rather account for the entire arrangement as a single lease component (a practical expedient allowed under ASC 842). For our outsourced data center environment agreement, we have concluded that there are lease and non-lease components, and have allocated the consideration in the agreement on a relative stand-alone price basis. Due to the significant assumptions and judgements required in accounting for leases (to include whether a contract contains a lease, the allocation of the consideration, and the determination of the discount rate), the judgements and estimates made could have a significant effect on the amount of assets and liabilities recognized.

We sublease certain of our leased real estate to third parties. These subleases have remaining lease terms of up to four years and certain subleases have renewal terms that can extend the lease for up to an additional two years.


	Quarter Ended March 31, 2019
Operating lease expense	$	5,299
Variable lease expense		923
Short-term lease expense		140
Sublease income		(412	)
Total net lease expense	$	5,950

Other information related to leases was as follows (in thousands, except term and discount rate):

	Quarter Ended March 31, 2019
Supplemental Cash Flows Information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	4,240
Right-of-use assets obtained in exchange for new operating lease liabilities		870
Weighted-average remaining lease term - operating leases	60 months
Weighted-average discount rate - operating leases		4.52	%

Future minimum lease payments under non-cancelable leases as of March 31, 2019 were as follows (in thousands):

2019 (April 1, 2019 – December 31, 2019)	$	17,237
2020		20,498
2021		19,549
2022		14,603
2023		9,556
Thereafter		14,681
Total future minimum lease payments (1)		96,124
Less: Interest (2)		(10,545	)
Total	$	85,579

Current operating lease liabilities	$	18,737
Non-current operating lease liabilities		66,842
Total	$	85,579

(1)

For leases commencing prior to 2019, minimum lease payments exclude payments for real estate taxes and non-lease components.

(2)

We used our in-country, currency adjusted incremental borrowing rate for the discount rate for the leases at adoption date, and will use the same approach for all leases beginning in 2019 or later.

As of March 31, 2019, we have an additional operating lease related to our outsourced data center environment that has not yet commenced of approximately $9 million. This operating lease will commence during 2019 with a lease term through 2022.

Future minimum lease payments under non-cancelable leases as of December 31, 2018 were as follows: 2019 – $16.6 million; 2020 – $14.1 million; 2021 – $13.1 million; 2022 – $11.5 million; 2023 – $9.6 million; and thereafter – $14.7 million.