7. Lease Obligations

Effective January 1, 2019, the Company adopted Topic 842. The Company leases property and equipment under operating leases. For leases with durations longer than 12 months, the Company recorded the related operating lease right-of-use asset (ROU) and operating lease liability at the present value of lease payments over the term. The Company used its incremental borrowing rate to discount the lease payments based on information available at January 1, 2019. The Company’s incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms and in a similar economic environment.

For all underlying classes of assets, the Company has elected to not recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less at lease commencement and do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. Leases containing termination clauses in which either party may terminate the lease without cause and the notice period is less than 12 months are deemed short-term leases with lease costs included in rent expense.

As of December 31, 2019, the Company’s right-of-use assets were $24,026, the Company’s current maturities of operating lease liabilities were $6,311, and the Company’s noncurrent lease liabilities were $10,538. During 2019, the Company paid $29,502 in operating leases reflected as a reduction from operating cash flows.

The table below presents operating lease related terms and discount rates as of December 31, 2019:


Weighted-average remaining lease term	4.04 years
Weighted-average discount rate	7.02	%

Components of lease costs were as follows for the year ended December 31, 2019:


Operating lease cost	$	27,624
Short-term lease cost		4,331
Variable lease cost		182
Lease termination expense		19,353

Total lease cost	$	51,490

As of December 31, 2019, the Company leased or subleased certain aircraft and engines, training simulators, and facilities. Rent expense recorded under these leases was $51,490 and $42,468 in 2019 and 2018, respectively. The following table summarizes the future minimum rental payments required under operating leases that had initial or remaining non-cancelable lease terms greater than one year as of December 31, 2019:


Fiscal Year	Amount
2020	$	7,384
2021		3,975
2022		3,906
2023		2,722
2024		1,087
Thereafter		987

Total lease payments		20,061

Less imputed interest		(2,104	)
Total lease liabilities	$	17,957