Effective January 1, 2019, the Company adopted the new accounting guidance using the modified retrospective method of applying the new guidance at the adoption date. The Company elected practical expedients permitted under the transition provisions, which allowed the Company to carryforward historical assessments of whether contracts are or contain leases and lease classification. Beginning with January 1, 2019, the Company’s financial position is presented under the new guidance, while the prior period financial statements were not adjusted and continue to be reported in accordance with the previous guidance.

The Company primarily leases property under operating leases and has one material equipment operating lease for an aircraft. The Company’s property leases are primarily for its regional, medical and business offices, storage space and temporary housing for medical staff.

For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of the lease payment using a discount rate that reflects the Company’s estimated incremental borrowing rate. Certain of the Company’s leases include rental escalation clauses and renewal options that are factored into the determination of lease payments when appropriate. Operating leases for office equipment are not material, and therefore are excluded from the Company’s Consolidated Balance Sheet. Finance leases are not material but will continue to be reported on the Company’s Consolidated Balance Sheets with the

right-of-use

assets included in property and equipment, net, and the liabilities included in current portion of long-term debt and finance lease obligations.

The table below presents the operating lease-related

right-of-use

assets and related liabilities recorded on the Company’s balance sheet and the weighted average remaining lease term and discount rate as of June 30, 2019 (dollars in thousands):


	June 30, 2019
Assets:
Operating lease right-of-use assets	$	89,857
Liabilities:
Current portion of operating lease liabilities		24,494
Long-term portion of operating lease liabilities		70,531
Other Information:
Weighted-average remaining lease term		4.7 years
Weighted average discount rate		5.0	%

The table below presents certain information related to the lease costs for operating leases during the three and six months ended June 30, 2019 (in thousands):


	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease costs	$	7,428	$	15,071
Variable lease costs		1,069		1,791
Other operating lease costs		1,325		2,958

Total operating lease costs	$	9,822	$	19,820

The table below presents supplemental cash flow information related to operating leases during the six months ended June 30, 2019 (in thousands):


	June 30, 2019
Operating cash flows for operating leases	$	20,528

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the balance sheet as of June 30, 2019 (in thousands):


	June 30, 2019
2019 (excluding the six months ended June 30, 2019)	$	11,821
2020		26,064
2021		22,013
2022		17,170
2023		12,626
Thereafter		15,383

Total minimum lease payments		105,077
Less: Amount of payments representing interest		(10,052	)

Present value of future minimum lease payments		95,025
Less: Current obligations		(24,494	)

Long-term portion of operating leases	$	70,531