The Company leases certain property, plant and equipment under operating leases, primarily consisting of railroad equipment leases, certain distribution center assets and real estate. Leases with an initial term of twelve months or less are not recorded on the balance sheet.

Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to ten years or more. The exercise of lease renewal options is typically at the Company’s sole discretion. Certain leases also include options to purchase the leased property.

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease ROU assets, operating lease liabilities, and noncurrent operating lease liabilities on our consolidated balance sheets.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. As of December 31, 2019, it is not reasonably certain that we will exercise any of these options, except for our Houston technology center. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

We have lease agreements with lease and non-lease components, which are accounted for as a single lease component, primarily related to railroad equipment leases.

	2019
Operating lease cost	$	14,448
Short-term lease cost		2,928
Variable lease cost		83
Sublease income ^(a)		(2,791	)
Net lease cost	$	14,668

^(a) As a result of the adoption of ASC 842, sublease income is classified within revenues for the year ended December 31, 2019. Prior to the adoption, sublease income was recorded as a reduction to cost of sales. Sublease income for the year ended December 31, 2019 excludes rental income from owned assets of $1,383, respectively, which is recorded within revenues.

Future minimum lease payments under non-cancellable leases as of December 31, 2019 were as follows:

2020	$	16,849
2021		16,194
2022		12,324
2023		9,478
2024		5,395
Thereafter		10,483
Total lease payments	$	70,723
Less: imputed interest		(16,055	)
Present value of lease liabilities	$	54,668

The chart presented above is reflective of the contractual payments due prior to our bankruptcy filing. However, as a result of the defaults resulting from our filing of the Bankruptcy Petitions, we have reclassified non-current operating lease liabilities to current liabilities as of December 31, 2019.

The adoption of ASC 842 resulted in the Company recording a right of use asset of $56,591 and a total lease liability of $64,877 on January 1, 2019. The Company also reduced its other long-term liabilities by approximately $6,500 and accrued expenses by approximately $1,800 as of January 1, 2019 given that deferred rent is now included within the total lease liability. These adjustments represented non-cash changes during the year ended December 31, 2019.

	2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	14,934
Leased assets obtained in exchange for new operating lease liabilities		54

For the year ended December 31, 2019, the weighted average remaining lease term was 5.4 years and the weighted average discount rate was 10.3%.

Rent expense for all operating leases was $16,936 in 2018. For the year ended December 31, 2018, rent expense was stated net of sublease income of $4,142.