The Company has operating and finance leases for offices, taverns, land, vehicles, slot machines, and equipment. In addition, slot placement contracts in the form of space lease agreements at chain stores are accounted for as operating leases. Under chain store space lease agreements, the Company pays fixed monthly rental fees for the right to install, maintain and operate its slots at business locations, which are recorded in gaming expenses. The leases, excluding land, have remaining lease terms of 1 year to 28 years, some of which include options to extend the leases for an additional 5 to 15 years. Some equipment leases and space lease agreements include options to terminate the lease with 60 days’ to 1 year’s notice. The Company leases slot machines from gaming equipment manufacturers under short-term agreements. Most of the slot machine leases have variable rent structures, with amounts determined based on the performance of those machines. Certain others are short-term in nature, with fixed payment amounts. The Company has an operating ground lease with the Maryland Department of Natural Resources for approximately 270 acres in the Rocky Gap State Park on which Rocky Gap is situated. The Company leases approximately 20 acres of land in Laughlin, Nevada for the Laughlin Event Center and four parcels of land in Pahrump, Nevada on which the Gold Town Casino is located.

The Company leases approximately 4.5 acres of undeveloped land in Carson City. Upon the adoption of Topic 842, the Company wrote off the associated ROU asset for this land lease of $9 million to its beginning balance of retained earnings as of January 1, 2019. The Company is also lessee for nine taverns and locations subject to space lease agreements that it does not plan to develop, operate, or sub-lease. The Company wrote off the associated ROU asset for these ten leases of $3 million to its beginning balance of retained earnings as of January 1, 2019.

The Company leases its office headquarters building from a related party. See Note 12, Related Party Transactions, for more detail.

The current and long-term obligations under finance leases are included in “current portion of long-term debt, net and finance leases” and “long-term debt, net and finance leases”, respectively. The majority of the finance leases relate to vehicles used within the Company’s Distributed Gaming business and equipment for the Company’s casinos.

		Three Months Ended		Nine Months Ended
(In thousands)	Classification	September 30, 2019		September 30, 2019
Operating lease cost
Operating lease cost	Operating and SG&A expenses	$	11,397	$	34,453
Variable lease cost	Operating and SG&A expenses		6,411		15,065
Short-term lease cost	Operating and SG&A expenses		1,029		3,190
Total operating lease cost		$	18,837	$	52,708

Finance lease cost
Amortization of lease assets	Depreciation and amortization	$	493	$	1,492
Interest on lease liabilities	Interest expense, net		78		276
Total finance lease cost		$	571	$	1,768

	Nine Months Ended
(In thousands)	September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	35,057
Operating cash flows from finance leases		276
Financing cash flows from finance leases		1,267

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	36,117
Finance leases		5,768

(In thousands, except lease term and discount rate)	September 30, 2019
Operating leases
Operating lease right-of-use assets, gross	$	175,898
Accumulated amortization		26,987
Operating lease right-of-use assets, net	$	148,911

Current portion of operating leases	$	25,822
Noncurrent operating leases		138,104
Total operating lease liabilities	$	163,926

Finance leases
Property and equipment, gross	$	18,209
Accumulated depreciation		(3,356	)
Property and equipment, net	$	14,853

Current portion of finance leases, net	$	3,201
Noncurrent finance leases, net		8,368
Total finance lease liabilities	$	11,569

Weighted Average Remaining Lease Term
Operating leases	10.3 years
Finance leases	6.9 years

Weighted Average Discount Rate
Operating leases		6.3	%
Finance leases		6.5	%

	Operating			Finance
(In thousands)	Leases			Leases			Total
Remaining 2019	$	11,373		$	1,037		$	12,410
2020		30,776			3,787			34,563
2021		29,441			3,290			32,731
2022		22,906			1,954			24,860
2023		17,469			529			17,998
Thereafter		117,243			4,055			121,298
Total lease payments		229,208			14,652			243,860
Less: interest		(65,282	)		(3,083	)		(68,365	)
Present value of lease liabilities	$	163,926		$	11,569		$	175,495

As of September 30, 2019, the Company does not have any leases that have not yet commenced but that create significant rights and obligations.

	Three Months Ended		Nine Months Ended
(In thousands)	September 30, 2019		September 30, 2019
Minimum rental income	$	1,923	$	5,721
Contingent rental income		552		1,137
Total rental income	$	2,475	$	6,858

(In thousands)	Operating Leases
Remaining 2019	$	1,113
2020		4,204
2021		3,272
2022		2,433
2023		1,763
Thereafter		2,546
Total future minimum rentals	$	15,331

For the three months ended September 30, 2018, operating lease rental expense, calculated on a straight-line basis, was $9.6 million, $0.4 million and $3.8 million for space lease agreements, related party leases and other operating leases, respectively. For the nine months ended September 30, 2018, operating lease rental expense, calculated on a straight-line basis, was $29.0 million, $1.2 million, and $11.2 million for space lease agreements, related party leases and other operating leases, respectively. The Company recorded rental revenue of $1.9 million and $5.5 million for the three and nine months ended September 30, 2018, respectively.