Leases (Notes)

12 Months Ended

Dec. 31, 2019

Leases

Our leases principally relate to office, maintenance, and transportation equipment and funeral service real estate. The majority of our lease arrangements contain options to (i) purchase the property at fair value on the exercise date, (ii) purchase the property for a value determined at the inception of the lease, or (iii) renew the lease for the fair rental value at the end of the primary lease term.

Future lease payments for non-cancelable operating and finance leases as of December 31, 2019 were as follows:



	Operating			Finance			Total
	(In thousands)
2020	$	11,098		$	45,182		$	56,280
2021	10,253			63,840			74,093
2022	8,703			27,764			36,467
2023	6,394			20,317			26,711
2024	5,366			24,774			30,140
2025 and thereafter	40,364			24,594			64,958
Total lease payments	$	82,178		$	206,471		$	288,649
Less: Interest	(21,549		)	(21,219		)	(42,768		)
Present value of lease liabilities	$	60,629		$	185,252		$	245,881

The components of lease cost as of December 31, 2019 were as follows (in thousands):



Amortization of leased assets	$	42,147
Interest on lease liabilities	6,882
Total finance lease cost	49,029
Operating lease cost	12,502
Variable lease cost	1,089
Total lease cost	$	62,620

We paid variable lease costs of $1.1 million, representing amounts that were not fixed at the commencement of our lease agreements and were therefore expensed as incurred, during the fiscal year ended December 31, 2019. Approximately 70% of our variable lease costs are based upon changes in published indices, while approximately 30% of our variable lease costs are based on percentage rental of the net revenue generated by leased locations.

Supplemental balance sheet information related to leases were as follows:



Lease Type	Balance Sheet Classification	December 31, 2019
		(In thousands)
Operating lease right-of-use assets⁽¹⁾	Deferred charges and other assets	$	58,101
Finance lease right-of-use assets ⁽¹⁾	Property and equipment, net	179,538
Total right-of-use assets ⁽¹⁾		$	237,639

Operating	Accounts payable and accrued liabilities	$	8,538
Finance	Current maturities of long-term debt	39,428
Total current lease liabilities		47,966
Operating	Other liabilities	52,091
Finance	Long-term debt	145,824
Total non-current lease liabilities		197,915
Total lease liabilities		$	245,881

(1)Right-of-use assets are presented net of accumulated amortization.

The weighted-average life remaining and discount rates of our leases as of December 31, 2019 were as follows:



	Operating	Finance
Weighted-average remaining lease term (years)	12.4	4.9
Weighted-average discount rate	4.6%	3.5%

Supplemental cash flow information related to leases for the year ended December 31, 2019, were as follows (in thousands):



Cash paid for amounts in the measurement of lease liabilities
Operating cash flows for operating leases	$	12,568
Operating cash flows for finance leases	7,472
Financing cash flows for finance leases	42,627
Total cash paid for amounts included in the measurement of lease liabilities	$	62,667

Right-of-use assets obtained in exchange for finance lease liabilities	$	48,233
Right-of-use assets obtained in exchange for operating lease liabilities	$	10,925

The right-of-use assets obtained in exchange for lease liabilities of 48.2 million for finance leases and 10.9 million for operating leases include increases related to lease renewals and extensions of $4.4 million and $8.0 million, respectively. Additionally, we recorded modifications of $5.7 million that reduced the right-of-use assets and lease liabilities through remeasurement and reassessment of certain leases, which are excluded from the numbers shown above.

We have 65 operating leases where we are the lessor and the non-cancelable term is greater than one year, resulting in $0.5 million and $2.5 million in lease income for the quarter and year ended December 31, 2019, respectively. We lease office space and excess land, and we are party to cellular agreements and land easements. We generally do not have sales-type leases, direct financing leases, or lease receivables. The adoption of ASC 842 did not have an impact on our accounting for lessor leases. Future undiscounted lease income from operating leases as of December 31, 2019 were as follows (in thousands):



2020	$	1,744
2021	1,428
2022	1,053
2023	436
2024	77
Thereafter	139
Total expected cash receipts	$	4,877

As of December 31, 2018, we disclosed the following future lease payments for non-cancelable operating and capital leases exceeding one year:



	Operating⁽¹⁾		Capital ⁽¹⁾
	(In thousands)
2019	$	11,295	$	46,998
2020	9,550		51,943
2021	8,251		57,881
2022	7,282		21,842
2023	5,397		15,587
2024 and thereafter	37,841		40,447
Total	$	79,616	$	234,698
Less: Interest on capital leases			(22,746		)
Total principal payable on capital leases			$	211,952

(1)These results have not been adjusted for the impact of our adoption of "Leases" on January 1, 2019.

Rental expense for operating leases was $27.4 million and $30.5 million for the years ended December 31, 2018 and 2017, respectively.