The Company’s lease portfolio primarily consists of finance and operating real estate leases integral for facility operations. The original terms of the leases typically range from five to 30 years with optional renewal periods. A minimal portion of the Company’s lease portfolio consists of non-real estate leases, including copiers and equipment, which generally have lease terms of one to three years and have insignificant lease obligations.

In March 2016, the FASB issued ASU 2016-02. ASU 2016-02’s core principle is to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information. The Company adopted ASU 2016-02 retrospectively at the beginning of the period of adoption. Prior periods have not been adjusted.

The Company has elected the package of practical expedients offered in the transition guidance which allows management not to reassess lease identification, lease classification and initial direct costs. The Company also elected the accounting policy practical expedients by class of underlying asset to: (i) combine associated lease and non-lease components into a single lease component; and (ii) exclude recording short-term leases as right-of-use assets and liabilities on the condensed consolidated balance sheets. Non-lease components, which are not significant overall, are combined with lease components.

On January 1, 2019, the Company recorded right-of-use assets and lease liabilities on the condensed consolidated balance sheet of $509.8 million and $536.7 million, respectively, for non-cancelable real estate operating leases with original lease terms in excess of one year. Finance leases remained on the condensed consolidating balance sheets as required by previous accounting guidance. The Company reviews service agreements for embedded leases and records right-of-use assets and liabilities as necessary.

Operating lease liabilities were recorded as the present value of remaining lease payments not yet paid for the lease term discounted using the incremental borrowing rate associated with each lease. Operating lease right-of-use assets represent operating lease liabilities adjusted for prepayments, accrued lease payments, lease incentives and initial direct costs. Certain of the Company’s leases include renewal or termination options. Calculation of operating lease right-of-use assets and liabilities include the initial lease term unless it is reasonably certain a renewal or termination option will be exercised. Variable components of lease payments fluctuating with a future index or rate, as well as those related to common area maintenance costs, are not included in determining lease payments and are expensed as incurred. Most of the Company’s leases do not contain implicit borrowing rates, and therefore, incremental borrowing rates were calculated based on information available at the later of the lease commencement date or January 1, 2019. Incremental borrowing rates reflect the Company’s estimated interest rates for collateralized borrowings over similar lease terms.

At March 31, 2019, the Company recorded the following on the condensed consolidated balance sheet (in thousands):

Right-of-Use Assets	Balance Sheet Classification	March 31, 2019
Finance lease right-of-use assets	Property and equipment, net	$	45,547
Operating lease right-of-use assets	Operating lease right-of-use assets		506,787
Total		$	552,334

Lease Liabilities	Balance Sheet Classification	March 31, 2019
Current:
Finance lease liabilities	Other accrued liabilities	$	7,210
Operating lease liabilities	Current portion of operating lease liabilities		27,984
Noncurrent:
Finance lease liabilities	Other liabilities		44,445
Operating lease liabilities	Operating lease liabilities		504,753
Total		$	584,392

Weighted-average remaining lease terms and discount rates at March 31, 2019 were as follows:


Weighted-average remaining lease term (in years):
Finance	7.4
Operating	19.9

Weighted-average discount rate:
Finance		6.4	%
Operating		6.4	%

The Company recorded the following lease costs for the three months ended March 31, 2019 (in thousands):

	Three Months Ended March 31, 2019
Finance lease costs:
Depreciation of leased assets		1,123
Interest of lease liabilities		997
Total finance lease costs	$	2,120

Operating lease costs		16,529
Variable lease costs		886
Short term lease costs		1,447
Other lease costs		1,445
Total rents and leases	$	20,307

Total lease costs	$	22,427

Undiscounted cash flows for finance and operating leases recorded on the condensed consolidated balance sheet were as follows at March 31, 2019 (in thousands):

	Finance Leases		Operating Leases
For the nine months ending December 31, 2019	$	6,078	$	46,252
2020		6,785		58,573
2021		34,922		55,048
2022		1,984		50,272
2023		1,007		46,774
Thereafter		26,096		723,393
Total minimum lease payments		76,872		980,312
Less: amount of lease payments representing interest		25,217		447,575
Present value of future minimum lease payments		51,655		532,737
Less: Current portion of lease liabilities		7,210		27,984
Noncurrent lease liabilities	$	44,445	$	504,753

Supplemental data for the three months ended March 31, 2019 was as follows (in thousands):

	Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	15,809
Operating cash flows for finance leases	$	997
Financing cash flows for finance leases	$	846

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	3,662
Finance leases	$	1,027