The Company has land, warehouse and office space, and equipment leases which are classified as either operating or financing obligations. The Company’s land lease consists of a long-term lease with the City of San Diego covering approximately 190 acres, including approximately 17 acres of water in Mission Bay Park, California (the “Premises”). Under the terms of the lease, the Premises must be used as a marine park facility and related uses. In addition, the Company may not operate another marine park facility within a radius of 560 miles from the City of San Diego. The annual rent under the lease is variable and calculated on the basis of a specified percentage of the Company’s gross income from the Premises, or the minimum yearly rent, whichever is greater. The current lease term for the Premises ends in June 2048 with a corresponding lease liability being amortized using an estimated incremental borrowing rate of 8.2%. The minimum yearly rent is adjusted every three years to an amount equal to 80% of the average accounting year rent actually paid for the three previous years. The minimum yearly rent through December 31, 2019 was approximately $10.4 million. On January 1, 2020, the minimum annual rent payment was recalculated in accordance with the lease agreement and remained unchanged. Actual payments may vary from the annual straight-line minimum base rent based on a shift of seasonal performance results. Rent payments related to the Premises for the years ended December 31, 2019, 2018 and 2017 were approximately $10.5 million, $11.2 million and $10.5 million, respectively. Upon adoption of ASC 842, the Company also reclassified a favorable lease asset net balance of approximately $14.0 million related to the Premises from other intangible assets, net, to right of use assets-operating in the accompanying consolidated balance sheet as of December 31, 2019.

The tables below present the lease balances and their classification in the accompanying consolidated balance sheets as of December 31, 2019 and 2018:

		December 31,
	Classification	2019
Assets:		(In thousands)
Operating leases	Right of use assets - operating	$	141,438
Financing leases	Other assets, net		3,487
Total lease assets		$	144,925
Liabilities:
Current
Operating leases	Operating lease obligations	$	3,896
Financing leases	Other accrued liabilities		707
Noncurrent
Operating leases	Long-term operating lease obligations		124,339
Financing leases	Other liabilities		2,851
Total lease liabilities		$	131,793

		December 31,
	Classification	2018
Assets:		(In thousands)
Favorable lease asset	Other intangible assets, net	$	13,961
Capital leases	Property and equipment, at cost		3,066
Capital leases, accumulated depreciation	Accumulated depreciation		(122	)
Total lease assets		$	16,905
Liabilities:
Current
Capital leases	Other accrued liabilities	$	143
Noncurrent
Capital leases	Other liabilities		2,822
Total lease liabilities		$	2,965

The table below presents the lease costs and their classification in the accompanying consolidated statements of comprehensive income (loss) for the year ended December 31, 2019:

	Classification	Year Ended December 31, 2019
		(In thousands)
Operating lease cost	Operating expenses	$	14,528
Operating lease cost	Selling, general and administrative expenses		445
Financing lease cost
Amortization of leased assets	Depreciation and amortization		742
Interest on lease liabilities	Interest expense		146
Net lease cost		$	15,861

In addition to the operating lease costs above, short term rent expense for the year ended December 31, 2019 was approximately $4.2 million and is included in operating expenses and selling, general and administrative expenses in the accompanying consolidated statements of comprehensive income (loss).

The table below presents the Company’s lease maturities as of December 31, 2019:

	Operating leases
Years Ending December 31,	Land lease			Other operating leases			Total operating leases			Financing leases
	(In thousands)
2020	$	10,401		$	3,619		$	14,020		$	854
2021		10,401			3,270			13,671			341
2022		10,401			2,273			12,674			213
2023		10,401			1,729			12,130			208
2024		10,401			1,572			11,973			206
Thereafter		244,431			2,993			247,424			2,593
Total lease payments		296,436			15,456			311,892			4,415
Less: Imputed interest		(181,163	)		(2,494	)		(183,657	)		(857	)
Present value of lease liabilities	$	115,273		$	12,962		$	128,235		$	3,558

Operating lease costs include approximately $7.2 million related to options to extend lease terms that are reasonably certain of being exercised.

The table below presents the future minimum lease payments for long-term non-cancellable operating and financing leases under ASC 840 as of December 31, 2018:

Years Ending December 31,	Operating leases		Financing leases
	(In thousands)
2019	$	16,578	$	231
2020		14,179		226
2021		13,111		220
2022		11,416		208
2023		10,479		204
Thereafter		265,234		2,794
Total lease payments	$	330,997		3,883
Less: Interest				(918	)
Total principal payable on financing leases			$	2,965

The table below presents the weighted average remaining lease terms and applicable discount rates as of December 31, 2019:


Weighted average remaining lease term (years):
Operating leases	26.19
Financing leases	14.64
Weighted average discount rate:
Operating leases	8.12	%
Financing leases	3.56	%

The table below presents the cash flows and supplemental information associated with the Company’s leasing activities for the year ended December 31, 2019:


Cash paid for amounts included in the measurement of lease liabilities:	(In thousands)
Operating cash flows from operating leases	$	14,513
Operating cash flows from financing leases	$	146
Financing cash flows from financing leases	$	692
Right of use assets obtained in exchange for lease obligations:
Financing leases	$	1,285
Operating leases	$	133,297