	December 31
	2019		2018
	(In thousands)
Land	$	96,118	$	97,082
Buildings		482,182		465,482
Leasehold improvements		262,438		240,731
Furniture and equipment — owned		739,724		669,782
Furniture and equipment — capital leases		14,232		18,582
		1,594,694		1,491,659
Less: accumulated depreciation and amortization
Owned assets		882,272		835,218
Capital leases		8,425		9,033
		890,697		844,251
Right of use assets — operating leases		436,927		—
Premises and equipment, net	$	1,140,924	$	647,408

The January 1, 2019 adoption of new lease accounting guidance from the FASB resulted in the Company recording right-of-use assets and lease liabilities in the consolidated balance sheet for all operating leases with a term greater than twelve months. In addition, the Company elected the practical expedients that (1) reassessment is not needed for whether any existing contracts are or contain leases, (2) reassessment of the classification of existing operating and finance leases is not required, and (3) a lease that has a term of twelve months or less is not required to apply the asset and liability recognition requirements.

The Company determines whether a contract contains a lease based on whether a contract, or a part of a contract, conveys the right to control the use of an identified asset for a period of time in exchange for consideration. If it is determined that a contract contains a lease, the consideration in the contract is separated between lease and nonlease components (for example, taxes or common area maintenance). In calculating the present value of the lease payments, the Company has utilized its incremental secured borrowing rate based on the lease term.

The right-of-use assets and lease liabilities relate to banking offices and other space occupied by the Company and use of certain equipment under noncancelable operating lease agreements, which prior to the adoption of the guidance were not reflected in the consolidated balance sheet.

As of December 31, 2019, the Company recognized $488 million of operating lease liabilities as a component of “accrued interest and other liabilities” in the consolidated balance sheet.

The Company’s noncancelable operating lease agreements expire at various dates over the next 22 years. Real estate leases generally consist of fixed monthly rental payments with certain leases containing escalation clauses. Any variable lease payments or payments for nonlease components are recognized in the consolidated statement of income as a component of “equipment and net occupancy” expense based on actual costs incurred. Some leases contain lessee options to extend the term. Those options are included in the lease term when it is determined that it is reasonably certain the option will be exercised.

The Company has noncancelable operating lease agreements for certain equipment related to ATMs, servers, printers and mail machines that are used in the normal course of operations. The ATM leases are either based on the rights to a specific square footage or a license agreement whereby the Company has the right to operate an ATM in a landlord's location. The lease terms

generally contain both fixed payments and variable payments that are transaction-based. Given the transaction-based nature of the variable payments, such payments are excluded from the measurement of the right-of-use asset and lease liability and are recognized in the consolidated statement of income as a component of “equipment and net occupancy” expense when incurred.

The following table presents information about the Company’s lease costs for operating leases recorded in the consolidated balance sheet, cash paid toward lease liabilities, and the weighted-average remaining term and discount rates of the operating leases.

	Year Ended
	December 31, 2019
	(Dollars in thousands)
Lease cost
Operating lease cost	$	100,669
Short-term lease cost		105
Variable lease cost		2,332
Total lease cost	$	103,106

Other information
Right-of-use assets obtained in exchange for new operating lease liabilities	$	132,219
Cash paid toward lease liabilities		101,869
Weighted-average remaining lease term	7 years
Weighted-average discount rate		3.01	%

Minimum lease payments under noncancelable operating leases are summarized in the following table.

	(In thousands)
Year ending December 31:
2020	$	100,447
2021		95,199
2022		79,794
2023		62,766
2024		50,539
Later years		154,585
Total lease payments		543,330
Less: imputed interest		55,775
Total	$	487,555

Net lease expense for all operating leases totaled $111 million in 2018 and $114 million in 2017. All other operating leasing activities were not material to the Company’s consolidated results of operations. Minimum lease payments required under capital leases are not material.