On January 1, 2019, the Company adopted ASU No. 2016-02 and ASU No. 2018-11 using the optional transition method. Under this transition method, comparative periods will continue to be reported in accordance with prior lease guidance under ASC 840 Leases. The Company has elected certain practical expedients permitted under the transition guidance, which, among other things, allows the Company to carry forward historical lease classifications.

The Company rents facilities, equipment and vehicles under operating leases, some of which contain renewal options. Upon inception of a rent agreement, the Company determines whether the arrangement contains a lease based on the unique conditions present. Leases that have a term over a year are recognized on the balance sheet as right-of-use assets and lease liabilities. Right-of-use assets are included in prepaid expenses and other current assets and other assets on the Company’s Consolidated Balance Sheet. Lease liabilities are included in other current liabilities and other long-term liabilities on the Company’s Consolidated Balance Sheet. Information regarding the Company's right-of-use assets and the corresponding lease liabilities are as follows:

	December 31, 2019		January 1, 2019
(In thousands)
Right-of-use assets	$	8,411	$	10,745
Lease liabilities		8,792		11,087

The Company’s operating lease agreements have lease and non-lease components that require payments for common area maintenance, property taxes and insurance. The Company has elected to account for both lease and non-lease components as one lease component. The fixed and in-substance fixed consideration in the Company’s rent agreements constitute operating lease expense that is included in the capitalized right-of-use assets and lease liabilities. The variable and short-term lease expense payments are not included in the present value of the right-of use-assets and lease liabilities on the Consolidated Balance Sheet. The Company’s rent expense is as follows:

	December 31, 2019
(In thousands)
Operating lease expense	$	3,095
Variable and short-term lease expense		270
Rent expense	$	3,364

The Company records right-of-use assets and lease liabilities based upon the present value of lease payments over the expected lease term. The Company’s lease agreements typically do not have implicit interest rates that are readily determinable. As a result, the Company utilizes an incremental borrowing rate that would be incurred to borrow on a collateralized basis over a similar term in a comparable economic environment. As of December 31, 2019 and January 1, 2019, the remaining lease term on the Company’s leases was 4.5 years and 5.3 years, respectively. As of December 31, 2019 and January 1, 2019, the discount rate was 5.0%. The future minimum lease payments to be paid under operating leases are as follows:

	December 31, 2019
	(In thousands)
2020	$	2,840
2021		2,279
2022		1,298
2023		1,205
2024		1,245
Thereafter		943
Total future lease payments		9,810
(Present value adjustment)		(1,018	)
Present value of future lease payments	$	8,792