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.

The Company has elected the accounting policy practical expedients by class of underlying asset in ASC 842 “Leases” 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.

Operating lease liabilities are recorded at 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 are calculated based on information available at the lease commencement date. Incremental borrowing rates reflect the Company’s estimated interest rates for collateralized borrowings over similar lease terms. Additionally, the Company reviews service agreements for embedded lease and right-of-use assets and liabilities as necessary.

The Company recorded the following at September 30, 2020 and December 31, 2019 on the condensed consolidated balance sheets (in thousands):

Right-of-Use Assets	Balance Sheet Classification	September 30, 2020		December 31, 2019
Finance lease right-of-use assets	Property and equipment, net	$	43,663	$	44,370
Operating lease right-of-use assets	Operating lease right-of-use assets		464,596		501,837
Total		$	508,259	$	546,207

Lease Liabilities	Balance Sheet Classification	September 30, 2020		December 31, 2019
Current:
Finance lease liabilities	Other accrued liabilities	$	35,319	$	6,819
Operating lease liabilities	Current portion of operating lease liabilities		30,433		29,140
Noncurrent:
Finance lease liabilities	Other liabilities		14,704		43,662
Operating lease liabilities	Operating lease liabilities		477,355		502,252
Total		$	557,811	$	581,873

Weighted-average remaining lease terms and discount rates were as follows at September 30, 2020 and December 31, 2019:

	September 30, 2020			December 31, 2019
Weighted-average remaining lease term (in years):
Finance	6.3			6.9
Operating		18.7		19.4

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

The Company recorded the following lease costs for the three and nine months ended September 30, 2020 and 2019 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Finance lease costs:
Depreciation of leased assets		1,151		1,036		3,336		3,295
Interest of lease liabilities		995		977		2,977		2,973
Total finance lease costs	$	2,146	$	2,013	$	6,313	$	6,268

Operating lease costs		16,616		15,873		49,436		48,639
Variable lease costs		1,311		1,229		4,181		3,159
Short term lease costs		1,407		1,378		3,725		4,308
Other lease costs		1,848		1,654		5,491		4,754
Total rents and leases	$	21,182	$	20,134	$	62,833	$	60,860

Total lease costs	$	23,328	$	22,147	$	69,146	$	67,128

For the three months ended September 30, 2020, the Company recorded a non-cash lease impairment charge of $16.4 million related to the decision to close certain U.K. elderly care facilities.

Undiscounted cash flows for finance and operating leases recorded on the condensed consolidated balance sheets were as follows at September 30, 2020 (in thousands):

	Finance Leases		Operating Leases
For the three months ending December 31, 2020	$	1,963	$	15,765
2021		36,384		60,732
2022		3,481		55,565
2023		2,218		50,870
2024		1,340		48,471
Thereafter		25,090		670,965
Total minimum lease payments		70,476		902,368
Less: amount of lease payments representing interest		20,453		394,580
Present value of future minimum lease payments		50,023		507,788
Less: Current portion of lease liabilities		35,319		30,433
Noncurrent lease liabilities	$	14,704	$	477,355

Supplemental data for the three and nine months ended September 30, 2020 and 2019 was as follows (in thousands):

	Nine Months Ended September 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	47,697	$	45,576
Operating cash flows for finance leases	$	2,977	$	2,973
Financing cash flows for finance leases	$	3,151	$	2,701

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	21,560	$	15,623
Finance leases	$	2,896	$	2,457