We lease certain facilities, office space, land and equipment. Our lease payments are primarily fixed, but also include variable payments that are based on usage of the leased asset. Initial lease terms range from one to 15 years, and may include one or more options to renew, with renewal terms extending a lease up to 40 years. None of our renewal options are considered reasonably certain to be exercised. Provisions for residual value guarantees exist in some of our equipment leases, however amounts associated with these provisions are not material. Our leases do not include any material restrictive covenants.

Leases with an initial term of 12 months or less are not recorded on the balance sheet and expense is recognized on a straight-line basis over the lease term. We combine lease and nonlease components in our leases, except for equipment leases that include maintenance related services. We use the rate implicit in the lease, when available, to discount lease payments to present value. However, many of our leases do not provide a readily determinable implicit rate and we estimate our incremental borrowing rate to discount payments based on information available at lease commencement.

(1)	Included in Operating lease assets in the Company’s consolidated balance sheets.

(2)	Included in Property and equipment, net in the Company’s consolidated balance sheets. Finance right-of-use assets are recorded net of accumulated amortization of $1.5 million as of June 30, 2019.

(3)	Included in Current portion of operating lease liabilities in the Company’s consolidated balance sheets.

(4)	Included in Accrued liabilities in the Company’s consolidated balance sheets.

(5)	Included in Long-term operating lease liabilities in the Company’s consolidated balance sheets.

(6)	Included in Other long-term liabilities in the Company’s consolidated balance sheets.

Lease expense consisted of the following:


	Three Months Ended		Six Months Ended
$s in thousands	June 30, 2019		June 30, 2019
Operating lease cost (1)	$	1,713	$	3,455
Finance lease cost:
Amortization of leased assets (2)		248		476
Interest on lease liabilities (3)		30		50
Total	$	1,991	$	3,981

(1)

Included in Direct operating costs and Selling, general, and administrative expenses in the Company’s consolidated statements of operations. Operating lease cost includes short-term leases, excluding expenses relating to leases with a term of one month or less, which are not material. Operating lease cost excludes variable lease costs which are not material.

(2)	Included in Direct operating costs in the Company’s consolidated statements of operations.

(3)	Included in Interest expense in the Company’s consolidated statements of operations.

Supplemental cash flow information related to our leases is as follows:


	Six Months Ended
$s in thousands	June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,238
Operating cash flows from finance leases		50
Financing cash flows from finance leases		408

Non-cash investing and financing activities:
Right-of-use assets obtained in exchange for new operating lease liabilities	$	2,397
Right-of-use assets obtained in exchange for new finance lease liabilities		1,844

Other information related to our leases is as follows:


	June 30, 2019
Weighted-average remaining lease term (years):
Operating leases		5.6
Finance leases		3.7
Weighted-average discount rate:
Operating leases		4.38	%
Finance leases		3.71	%

The Company’s maturity analysis of its lease liabilities as of June 30, 2019 is as follows:


	Operating		Finance
$s in thousands	Leases		Leases		Total
2019 (excluding the six months ended June 30, 2019)	$	2,936	$	484	$	3,420
2020		4,110		792		4,902
2021		3,663		619		4,282
2022		2,367		548		2,915
2023		1,886		612		2,498
Thereafter		5,157		354		5,511
Total	$	20,119	$	3,409	$	23,528
Less: Interest		2,634		303		2,937
Present value of lease liabilities	$	17,485	$	3,106	$	20,591

Future minimum lease payments on non-cancellable operating leases as of December 31, 2018 are as follows:


$s in thousands	Payments
2019	$	5,638
2020		3,644
2021		3,184
2022		1,885
2023		1,457
Thereafter		5,065
	$	20,873