Effective January 1, 2019, the Company adopted Accounting Standards Codification (“ASC”) Topic 842 “Leases” using the optional transition method. Under this method of adoption, the prior period comparative information in the consolidated financial statements has not been revised and continues to be reported under the previously applicable lease accounting guidance. Additionally, we elected the package of practical expedients permitted under the transition guidance, which included the carry-forward of historical lease classification.

The Company primarily leases office buildings under operating leases which are included in Operating lease right-of-use (“ROU”) assets, Current operating lease liabilities, and Long-term operating lease liabilities on the consolidated balance sheets. The Company’s leases have remaining terms of 1 to 7 years and often include one or more options to renew. The Company evaluates renewal options at lease inception and on an ongoing basis and includes renewal options that it is reasonably certain to exercise in its expected lease terms when classifying leases and measuring liabilities. Leases with initial terms of 12 months or less are considered short-term lease costs and are not recorded as ROU assets on the consolidated balance sheets. The Company has elected the practical expedient not to separate non-lease components from lease components for all classes of assets. Our lease agreements contain $3.7 million of residual value guarantees and generally do not contain material variable lease payments or restrictive covenants.

Information related to the Company's total lease costs were as follows (in thousands):

	Year Ended
	December 31, 2019
Operating lease cost	$	7,825
Variable lease cost		1,068
Short-term lease cost		304
Total lease cost	$	9,197

Information related to the Company's ROU assets and related lease liabilities were as follows (in thousands):

	Year Ended
	December 31, 2019
Cash paid for operating lease liabilities	$	7,479
Right-of-use assets obtained in exchange for new operating lease obligations ⁽¹⁾		30,792

(1) Year ended balance includes $25.8 million for operating leases existing on January 1, 2019 and $5.0 million for operating leases that commenced in 2019.

	As of December 31, 2019
Weighted-average remaining lease term	3.9 years
Weighted-average discount rate	4.3		%

The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancellable operating leases with terms of more than one year to the total operating lease liabilities recognized on the consolidated balance sheets as of December 31, 2019 (in thousands):

January 1, 2020 through December 31, 2020	$	7,576
2021		7,024
2022		5,515
2023		4,058
2024		2,078
Thereafter		460
Total undiscounted future minimum lease payments		26,711
Less: Difference between undiscounted lease payments and discounted operating lease liabilities		2,157
Total operating lease liabilities	$	24,554
Current operating lease liabilities	$	6,671
Long-term operating lease liabilities		17,883
Total operating lease liabilities	$	24,554

The Company has additional operating leases of $3.6 million that have not commenced as of December 31, 2019, and as such, have not been recognized on the Company’s Consolidated Balance Sheets. These operating leases are expected to commence in 2020 with lease terms between 5 years and 6 years.

As previously disclosed in our 2018 Annual Report on Form 10-K, under the previous lease accounting standard, future minimum lease payments for operating leases were as follows as of December 31, 2018 (in thousands):

Year Ending
December 31,
2019	$	7,135
2020		6,198
2021		5,673
2022		4,125
2023		2,642
Thereafter		1,474
	$	27,247