The Company adopted guidance effective in ASU 2016-02, “Leases (Topic 842)” on January 1, 2019. Adoption of this guidance did not change the Company’s balance sheet or income statement recognition of finance leases. As a result of adopting this guidance, the Company recorded short and long-term lease liabilities and corresponding right-of-use assets related to its operating leases.

The Company regularly enters into leases in the normal course of business. As of June 30, 2019, the leases in effect were related to land, buildings, vehicles, office equipment and other production equipment under operating leases with lease terms of up to 99 years. The Company often has the option to renew lease terms for buildings and other assets. The exercise of lease renewal options are generally at the Company’s sole discretion. In addition, certain lease arrangements may be terminated prior to their original expiration date at the Company’s discretion. The Company evaluates renewal and termination options at the lease commencement date to determine if the Company is reasonably certain to exercise the option on the basis of economic factors. The weighted average remaining lease term for the Company’s operating and financing leases as of June 30, 2019 was 17.4 and 1.0, respectively.

Lease expense is recognized for these leases on a straight-line basis over the lease term with variable lease payments recognized in the period those payments are incurred. The components of operating and finance lease costs are recognized in Costs and expenses and Interest expense, respectively, on the Company’s Consolidated Statements of Income. The Company’s operating and finance lease costs for the three and six months ended June 30, 2019 were as follows:


	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Components of Lease Expense
Operating lease cost	$	814	$	1,479
Finance lease cost
Amortization of right-of-use assets		16		34
Interest on lease liabilities		3		6
Total lease cost	$	833	$	1,519

The discount rate implicit within each lease is often not determinable and, therefore, the Company establishes the discount rate based on its incremental borrowing rate. The incremental borrowing rate for the Company’s leases is determined based on lease term and currency in which lease payments are made, adjusted for impacts of collateral. The weighted average discount rate used to measure the Company’s operating and finance lease liabilities as of June 30, 2019 was 5.16% and 1.58%, respectively.

Future maturities of the Company’s lease liabilities as of June 30, 2019 are as follows:

	Operating Leases		Finance Leases
2019	$	1,463	$	55
2020		2,312		109
2021		1,935		45
2022		1,497		24
2022		1,031		21
2023 and thereafter		8,762		0
Total lease payments	$	17,000	$	254
Less amount of lease payment representing interest		6,052		60
Total present value of lease payments	$	10,948	$	194

The total minimum sublease rentals under noncancelable subleases to be received through 2023 is $4.1 million.

Supplemental cash flow information related to leases for the three-month period ended June 30, 2019 was as follows:

	Six Months Ended June 30, 2019
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases		3,676
Operating cash flows for finance leases		6
Financing cash flows for finance leases		49