The Company’s lease portfolio primarily consists of finance and operating real estate leases integral for facility operations. The original terms of the leases typically range from five to 30 years with optional renewal periods. A minimal portion of the Company’s lease portfolio consists of non-real estate leases, including copiers and equipment, which generally have lease terms of one to three years and have insignificant lease obligations.

In March 2016, the FASB issued ASU 2016-02. ASU 2016-02’s core principle is to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information. The Company adopted ASU 2016-02 retrospectively at the beginning of the period of adoption. Prior periods have not been adjusted.

The Company has elected the package of practical expedients offered in the transition guidance which allows management not to reassess lease identification, lease classification and initial direct costs. The Company also elected the accounting policy practical expedients by class of underlying asset to: (i) combine associated lease and non-lease components into a single lease component; and (ii) exclude recording short-term leases as right-of-use assets and liabilities on the condensed consolidated balance sheets. Non-lease components, which are not significant overall, are combined with lease components.

On January 1, 2019, the Company recorded right-of-use assets and lease liabilities on the condensed consolidated balance sheet of $500.3 million and $526.6 million, respectively, for non-cancelable real estate operating leases with original lease terms in excess of one year. Finance leases remained on the condensed consolidating balance sheets as required by previous accounting guidance. The Company reviews service agreements for embedded leases and records right-of-use assets and liabilities as necessary.

Operating lease liabilities were recorded as the present value of remaining lease payments not yet paid for the lease term discounted using the incremental borrowing rate associated with each lease. Operating lease right-of-use assets represent operating lease liabilities adjusted for prepayments, accrued lease payments, lease incentives and initial direct costs. Certain of the Company’s leases include renewal or termination options. Calculation of operating lease right-of-use assets and liabilities include the initial lease term unless it is reasonably certain a renewal or termination option will be exercised. Variable components of lease payments fluctuating with a future index or rate, as well as those related to common area maintenance costs, are not included in determining lease payments and are expensed as incurred. Most of the Company’s leases do not contain implicit borrowing rates, and therefore, incremental borrowing rates were calculated based on information available at the later of the lease commencement date or January 1, 2019. Incremental borrowing rates reflect the Company’s estimated interest rates for collateralized borrowings over similar lease terms.

At June 30, 2019, the Company recorded the following on the condensed consolidated balance sheet (in thousands):

Right-of-Use Assets	Balance Sheet Classification	June 30, 2019
Finance lease right-of-use assets	Property and equipment, net	$	44,981
Operating lease right-of-use assets	Operating lease right-of-use assets		491,551
Total		$	536,532

Lease Liabilities	Balance Sheet Classification	June 30, 2019
Current:
Finance lease liabilities	Other accrued liabilities	$	7,095
Operating lease liabilities	Current portion of operating lease liabilities		27,578
Noncurrent:
Finance lease liabilities	Other liabilities		44,088
Operating lease liabilities	Operating lease liabilities		490,903
Total		$	569,664

Weighted-average remaining lease terms and discount rates at June 30, 2019 were as follows:


Weighted-average remaining lease term (in years):
Finance	7.2
Operating	19.7

Weighted-average discount rate:
Finance		6.4	%
Operating		6.4	%

The Company recorded the following lease costs for the three and six months ended June 30, 2019 (in thousands):

	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Finance lease costs:
Depreciation of leased assets		1,136		2,259
Interest of lease liabilities		999		1,996
Total finance lease costs	$	2,135	$	4,255

Operating lease costs		16,237		32,766
Variable lease costs		1,044		1,930
Short term lease costs		1,483		2,930
Other lease costs		1,655		3,100
Total rents and leases	$	20,419	$	40,726

Total lease costs	$	22,554	$	44,981

Undiscounted cash flows for finance and operating leases recorded on the condensed consolidated balance sheet were as follows at June 30, 2019 (in thousands):

	Finance Leases		Operating Leases
For the six months ending December 31, 2019	$	4,137	$	30,201
2020		6,938		58,325
2021		35,101		54,702
2022		2,193		50,007
2023		1,063		46,511
Thereafter		26,094		708,139
Total minimum lease payments		75,526		947,885
Less: amount of lease payments representing interest		24,343		429,404
Present value of future minimum lease payments		51,183		518,481
Less: Current portion of lease liabilities		7,095		27,578
Noncurrent lease liabilities	$	44,088	$	490,903

Supplemental data for the six months ended June 30, 2019 was as follows (in thousands):

	Six Months Ended June 30,
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	31,212
Operating cash flows for finance leases	$	1,996
Financing cash flows for finance leases	$	1,684

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	10,674
Finance leases	$	1,774