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Leases
6 Months Ended
Jun. 30, 2019
Lease
H. LEASES
On January 1, 2019, Teradyne adopted ASC 842 using the modified retrospective approach. Under this method of adoption, the comparative information in the consolidated financial statements has not been revised and continues to be reported under the previously applicable lease accounting guidance (ASC 840). Adoption of ASC 842 resulted in recording ROU assets and lease liabilities of approximately $50.1 million and $54.3 million, respectively. The adoption of ASC 842 did not have a material impact on beginning retained earnings, the consolidated statement of operations, cash flows, or earnings per share.
Teradyne has facility and auto leases, which are accounted for as operating leases. Teradyne’s facility leases are primarily used for administrative functions, research and development, manufacturing, and storage and distribution. Remaining lease terms range from less than one year to ten years.
Total lease expense for the three months ended June 30, 2019 was $8.9 million and included $2.6 million of variable lease costs and $0.8 million of costs related to short-term leases which are not recorded on the consolidated balance sheets. Total lease expense for the six months ended June 30, 2019 was $17.1 million and included $5.0 million of variable lease costs and $1.5 million of costs related to short-term leases which are not recorded on the consolidated balance sheets.
At June 30, 2019, the weighted average remaining lease term and weighted average discount rate for operating leases was 4.7 years and 5.2%, respectively. 
Supplemental cash flow information related to leases was as follows:
 
For the Three Months
Ended
   
For the Six Months
Ended
 
 
June 30, 2019
   
June 30, 2019
 
 
(in thousands)
 
Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows:
  $
4,993
    $
10,052
 
Right-of-use
assets obtained in exchange for new lease obligations
   
9,675
     
15,412
 
Maturities of lease liabilities as of June 30, 2019 were as follows:
 
Operating Lease
 
 
(in thousands)
 
2019
  $
10,725
 
2020
   
19,177
 
2021
   
16,510
 
2022
   
12,226
 
2023
   
5,849
 
Thereafter
   
12,583
 
         
Total lease payments
   
77,070
 
Less imputed interest
   
(12,569
)
         
Total lease liabilities
  $
64,501
 
         
As of December 31, 2018, future
non-cancelable
rent obligations as determined under ASC 840 were as follows:
 
Operating Lease
 
 
(in thousands)
 
2019
  $
19,570
 
2020
   
18,293
 
2021
   
13,578
 
2022
   
9,693
 
2023
   
5,449
 
Thereafter
   
9,472
 
         
Total lease payments
  $
76,055