LEASES

The Company has operating and finance leases for facilities, corporate offices, and certain equipment. The Company recognizes lease expense for these operating leases on a straight-line basis over the lease term. Leases with an initial term of one year or less are not recorded on the balance sheet. The Company's other leases have remaining lease terms of one to twelve years, some of which include options to extend the lease for up to twenty years, and some of which include options to terminate the leases within one year. The exercise of lease renewal options is at our sole discretion. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Upon adoption, the Company elected the practical expedient to not separate lease and non-lease components for all of its leases as the non-lease components are not significant to the overall lease costs.



Leases
	Classification	March 31, 2019
Assets
Operating lease assets	Operating lease assets	377,799
Finance lease assets	Property and equipment, net^(a)	1,045
Total leased assets		378,844

Liabilities
Current
Operating	Current portion of operating lease liabilities	22,205
Finance	Current portion of long-term debt and finance lease obligations, net	383
Noncurrent
Operating	Operating lease liabilities	362,094
Finance	Long-term debt and finance lease obligations, less current portion and deferred financing costs, net	466
Total lease liabilities		385,148

^(a)Finance lease assets are recorded net of accumulated amortization of 1,283 as of March 31, 2019.



Lease Cost		Three Months Ended
	Classification	March 31, 2019
Operating lease cost ^(a)	Lease and rent expense	15,804
Finance lease cost:
Amortization of finance lease assets	Depreciation and amortization	67
Interest on finance lease liabilities	Interest expense, net	11
Short term lease cost	Operating expense	141
Net lease cost		16,023

^(a)Includes variable lease costs, which are immaterial



Three Months Ended March 31, 2019
Maturity of Lease Liabilities	Operating Leases ^(a)		Finance Leases ^(a)		Total

2019	58,586		429		59,015
2020	59,666		212		59,878
2021	60,856		197		61,053
2022	62,075		100		62,175
2023	63,211		—		63,211
After 2023	305,640		—		305,640
Total lease payments	610,034		938		610,972
Less: Interest	(225,735	)	(89	)	(225,824	)
Present value of lease liabilities	384,299		849		385,148

^(a) Operating and Finance lease payments exclude option to extend lease terms that are not reasonably certain of being exercised.

The Company's future minimum lease commitments as of December 31, 2018, under Accounting Standards Codification Topic 840, predecessor to Topic 842, are as follows:



Twelve Months Ended December 31, 2018
Maturity of Lease Liabilities	Operating Leases ^(a)	Finance Leases ^(a)	Total

2018	58,291	454	58,745
2019	59,391	174	59,565
2020	60,575	173	60,748
2021	61,808	127	61,935
2022	63,065	—	63,065
After 2022	321,797	—	321,797
Total lease payments	624,927	928	625,855

^(a) Operating and Finance lease payments exclude option to extend lease terms that are not reasonably certain of being exercised.

The measurement of right-of-use assets and lease liabilities requires the Company to estimate appropriate discount rates. To the extent the rate implicit in the lease is readily determinable, such rate is utilized. However, based on information available at lease commencement for the majority of our leases, the rate implicit in the lease is not known. In these instances, the Company utilizes an incremental borrowing rate, which represents the rate of interest that it would pay to borrow on a collateralized basis over a similar term.



Lease Term and Discount Rate		March 31, 2019

Weighted-average remaining lease term (years)
Operating leases		9.77
Finance leases		2.62
Weighted-average discount rate
Operating leases		9.9%
Finance leases		6.60%



Other Information	Three Months Ended
	March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	14,516
Operating cash flows from finance leases	$	11
Financing cash flows from finance leases	$	132
Acquisition of operating leases through adoption of ASC 842	$	389,403