The Company determines if an arrangement is a lease at inception. This determination generally depends on whether the arrangement conveys to the Company the right to control the use of an explicitly or implicitly identified fixed asset for a period of time in exchange for consideration. Control of an underlying asset is conveyed to the Company if the Company obtains the rights to direct the use of and to obtain substantially all of the economic benefits from using the underlying asset. The Company has lease agreements which include lease and

non-lease

components, which the Company has elected to account for as a single lease component for all classes of underlying assets. Lease expense for variable lease components are recognized when the obligation is probable.

Operating leases are included in right of use assets, accrued liabilities and other, and other long-term liabilities on our consolidated balance sheets. Operating lease right of use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Operating lease payments are recognized as lease expense on a straight-line basis over the lease term. The Company has no material finance leases. The Company primarily leases buildings (real estate) and automobiles which are classified as operating leases.

ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. As an implicit interest rate is not readily determinable in our leases, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

The lease term for all of the Company’s leases includes the

non-cancellable

period of the lease plus any additional periods covered by either a Company option to extend (or not to terminate) the lease that the Company is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor. Options for lease renewals have been excluded from the lease term (and lease liability) for the majority of the Company’s leases as the reasonably certain threshold is not met. In a small number of the Company’s leases, the options for renewals have been included in the lease term as the reasonably certain threshold is met due to the Company having significant economic incentive for extending the lease.

Lease payments included in the measurement of the lease liability are comprised of fixed payments, variable payments that depend on an index or rate and amounts probable to be payable under the exercise of the Company option to purchase the underlying asset if reasonably certain.

Variable lease payments not dependent on a rate or index associated with the Company’s leases are recognized when the events, activities, or circumstances in the lease agreement on which those payments are assessed are probable. Variable lease payments are presented as operating expense in the Company’s income statement in the same line item as expense arising from fixed lease payments.

The Company has commitments under operating leases for certain facilities, vehicles and equipment used in its operations. Cash used in operations for operating leases was not materially different from operating lease expense for the three months ended March 31, 2020 and March 31, 2019. Our leases have initial lease terms ranging from one month

to 14 years. Certain lease agreements contain provisions for future rent increases.

The components of lease expense were as follows:


	Three Months Ended
	March 31,
	2020		2019
	(In thousands)
Operating lease cost	$	10,705	$	8,671
Variable lease cost		1,114		1,631

Total lease cost	$	11,819	$	10,302

Supplemental balance sheet information related to leases was as follows:


	March 31,		December 31,
	2020		2019
	(In thousands)
Right of use assets, net	$	168,543	$	179,679

Lease liabilities included in Accrued Liabilities and other		42,001		43,025
Lease liabilities included in Other long-term liabilities		132,360		142,620

Total lease liabilities	$	174,361	$	185,645

Supplemental cash flow information and other information related to leases was as follows:


	Three Months Ended
	March 31,
	2020			2019
	(In thousands)
Right-of-use assets obtained in exchange for new operating liabilities	$	8,451		$	1,325
Weighted-average remaining lease terms—operating leases (years)		5.76			6.26
Weighted-average discount rate—operating leases		3.70	%		3.88	%

Maturities of lease liabilities as of March 31, 2020 were as follows:


Lease Liability Maturity Analysis	Operating Leases
	(In thousands)
Remaining 2020	$	36,470
2021		42,132
2022		34,354
2023		26,243
2024		17,781
Thereafter		37,719

Total lease payments		194,699
Less: imputed interest		20,338

	$	174,361

The Company does not have any significant leases that have not yet commenced.