We recognize lease expense on a straight-line basis over the term of the lease. Net lease cost for the years ended December 31, 2019, 2018, and 2017 was approximately $16.5 million, $14.5 million, and $13.6 million, respectively. The components of lease costs for the year ended December 31, 2019 were as follows, in thousands:


		Year Ended
Lease Cost	Classification	December 31, 2019
Operating lease cost (a)	Selling, general and administrative expenses	$	16,828
Sublease (income) (b)	Selling, general and administrative expenses		(361)
Net lease cost		$	16,467


(a)	Includes expense related to short-term leases and variable payments, which were not significant.

(b)		Does not include rental revenue from leases of hardware consoles to customers, which was not significant.

Supplemental cash flow information for the year ended December 31, 2019 was as follows:


	Year Ended
	December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities	$	14,646
Right-of-use assets obtained in exchange for lease obligations	$	10,637

Generally, our lease agreements do not specify an implicit rate. Therefore, we estimate our incremental borrowing rate, which is defined as the interest rate we would pay to borrow on a collateralized basis, considering such factors as length of lease term and the risks of the economic environment in which the leased asset operates. As of December 31, 2019, the following disclosures for remaining lease term and discount rates were applicable:


			December 31, 2019
Weighted average remaining lease term			12.3 years
Weighted average discount rate			3.2%

Schedule of Minimum Payments Under Operating Lease Agreements

As previously disclosed in our 2018 Form 10-K under the prior guidance of ASC 840, minimum payments under operating lease agreements as of December 31, 2018 were as follows, in thousands:


Year ended December 31,	Operating Leases
2019	$	13,421
2020		11,319
2021		9,995
2022		8,053
2023		6,953
Thereafter		52,754
Total minimum lease payments	$	102,495