The Company adopted ASU No. 2016-02, Leases (Subtopic 842-10) effective January 1, 2019. Under the new guidance, lessees are required to recognize the following for all leases (with the exception of short-term leases) on the commencement date: a) lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and b) right-of-use (“ROU”) asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The Company adopted the new guidance using the transition method that allowed it to initially apply this guidance on the adoption date. The adoption did not result in a cumulative-effect adjustment to the Company’s opening retained earnings. Because of the transition method the Company used to adopt the new guidance, historical financial information was not updated and the financial disclosures required under the new standard are not provided for periods prior to January 1, 2019. The new guidance contains additional optional transition practical expedients intended to simplify adoption. The Company elected the package of practical expedients that allows for not reassessing: (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases.

The Company leases real estate for certain of its branch offices and rental equipment storage yards, vehicles and equipment used in its rental operations. The Company determines if an arrangement is a lease at inception. The Company has leases with lease and non-lease components, which are accounted for separately. ROU assets and liabilities are recognized on the commencement date based on the present value of lease payments over the lease term. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred, which are not material. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company uses the interest rate stated in the lease as the discount rate. If the interest rate is not stated, the Company uses its incremental borrowing rate based on information available on lease commencement date in determining the present value of lease payments. Many of the Company’s real estate lease agreements include options to extend the lease, which are not included in the minimum lease terms unless they are reasonably certain to be exercised. These leases include one or more options to renew, with renewal terms that may extend the lease term from one to three years. The amount of payments associated with such options is not material. Short-term leases are leases having a term of twelve months or less and exclude leases with a lease term of one month or less. The Company recognizes short-term leases on a straight-line basis and does not record a related ROU asset or liability for such leases. The adoption of the new guidance resulted in the recording of $10.0 million of ROU assets and operating lease liabilities, which were recorded in Prepaid expenses and other assets and Accounts payable and accrued liabilities on the Company’s Condensed Consolidated Balance Sheet.

During the year ended December 31, 2019, operating lease expense was $3.8 million, which includes short term lease expense of $0.2 million. At December 31, 2019, the weighted-average remaining lease term for operating leases was 3.8 years and the

weighted average discount rate was 4.38%. The Company had no sub-lease income during the year ended December 31, 2019, and did not have any finance leases as of December 31, 2019.

(in thousands)	Year Ended
	December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,568

Right of use assets obtained in exchange for lease obligations:
Operating leases	$	2,728

As of December 31, 2019, maturities of operating lease liabilities were as follows:

(in thousands)
Year ended December 31,
2020	$	3,350
2021		2,794
2022		1,958
2023		1,458
2024		915
Thereafter		293
Total lease payments		10,768
Less imputed interest		(823	)
	$	9,945

As a lessor, the Company’s recognition of lease revenue remained consistent with previous guidance. As a result, the adoption of the lease standard did not have an impact on the Company’s current and previously reported results in the Company’s Condensed Consolidated Statements of Income.

The Company’s equipment rentals for each of its operating segments are governed by agreements that detail the lease terms and conditions. The determination of whether these contracts with customers contain a lease generally does not require significant judgement. The Company accounts for these rentals as operating leases. These leases do not include material amounts of variable payments and the Company has made the accounting policy election to exclude all taxes assessed by a governmental authority. The Company generally does not provide an option for the lessee to purchase the rented equipment at the end of the lease term, thus, does not generate material revenue from sales of equipment under such options. Initial lease terms vary in length based upon customer needs and generally range from one to sixty months. Customers have the option to keep equipment on rent beyond the initial lease term on a month-to month basis based upon their needs. All of the Company’s rental products have long useful lives relative to the typical rental term with the original investment typically recovered in approximately three to five years. The rental products are typically rented for a majority of the time owned and a significant portion of the original investment is recovered when sold from inventory. The Company’s lease agreements do not contain residual value guarantees or restrictive covenants.

As of December 31, 2019, maturities of operating lease payments to be received in 2020 and thereafter were as follows:

(in thousands)
Year Ended December 31,
2020	$	92,821
2021		30,926
2022		8,922
2023		2,145
2024		877
Thereafter		37
	$	135,728

In the year ended December 31, 2019, the Company’s lease revenues were $411.0 million, consisting of $407.6 of operating lease revenues and $3.4 million of finance lease revenues. The Company has entered into finance leases to finance certain equipment sales to customers. The lease agreements have a bargain purchase option at the end of the lease term. For these leases, sales revenue and the related accounts receivable are recognized upon delivery and installation of the equipment and the unearned interest is recognized over the lease term on a basis, which results in a constant rate of return on the unrecovered lease investment. For the year ended December 31, 2019, the Company’s finance lease revenues included $3.1 million of sales revenues and $0.3 million of interest income. The minimum lease payments receivable and the net investment are included in Accounts receivable on the Company’s Consolidated Balance Sheet for such leases, which were as follows:

(in thousands)	December 31, 2019
Gross minimum lease payments receivable	$	3,218
Less – unearned interest		(289	)
Net investment in finance lease receivables	$	2,929

As of December 31, 2019, the future minimum lease payments under non-cancelable finance leases to be received in 2020 and thereafter were as follows:

(in thousands)
Year Ended December 31,
2020	$	2,345
2021		629
2022		184
2023		50
2024		10
Thereafter		—
Total minimum future lease payments to be received	$	3,218