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 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 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 consolidated 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 December 31, 2019, the Company recorded the following on the consolidated balance sheet (in thousands):

Right-of-Use Assets	Balance Sheet Classification	December 31, 2019
Finance lease right-of-use assets	Property and equipment, net	$	44,370
Operating lease right-of-use assets	Operating lease right-of-use assets		501,837
Total		$	546,207

Lease Liabilities	Balance Sheet Classification	December 31, 2019
Current:
Finance lease liabilities	Other accrued liabilities	$	6,819
Operating lease liabilities	Current portion of operating lease liabilities		29,140
Noncurrent:
Finance lease liabilities	Other liabilities		43,662
Operating lease liabilities	Operating lease liabilities		502,252
Total		$	581,873

Weighted-average remaining lease terms and discount rates at December 31, 2019 were as follows:


Weighted-average remaining lease term (in years):
Finance	6.9
Operating	19.4

Weighted-average discount rate:
Finance		6.4	%
Operating		6.3	%

The Company recorded the following lease costs for the year ended December 31, 2019 (in thousands):


Finance lease costs:
Depreciation of leased assets		4,526
Interest of lease liabilities		3,991
Total finance lease costs	$	8,517

Operating lease costs		64,958
Variable lease costs		5,407
Short term lease costs		5,497
Other lease costs		6,367
Total rents and leases	$	82,229

Total lease costs	$	90,746

Undiscounted cash flows for finance and operating leases recorded on the consolidated balance sheet were as follows at December 31, 2019 (in thousands):

	Finance Leases		Operating Leases
2020	$	7,494	$	61,857
2021		35,624		58,279
2022		2,681		53,395
2023		1,369		49,714
2024		1,007		47,505
Thereafter		25,088		689,931
Total minimum lease payments		73,263		960,681
Less: amount of lease payments representing interest		22,782		429,289
Present value of future minimum lease payments		50,481		531,392
Less: Current portion of lease liabilities		6,819		29,140
Noncurrent lease liabilities	$	43,662	$	502,252

Supplemental data for the year ended December 31, 2019 was as follows (in thousands):

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	62,122
Operating cash flows for finance leases	$	3,991
Financing cash flows for finance leases	$	3,270

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	21,809
Finance leases	$	3,234