The Company has operating and finance leases for offices, taverns, land, vehicles, slot machines, and equipment. In addition, slot placement contracts in the form of space lease agreements at chain stores are accounted for as operating leases. Under chain store space lease agreements, the Company pays fixed monthly rental fees for the right to install, maintain and operate its slots at business locations, which are recorded in gaming expenses. The leases, excluding land, have remaining lease terms of 1 year to 28 years, some of which include options to extend the leases for an additional 5 to 15 years. Some equipment leases and space lease agreements include options to terminate the lease with 60 days’ to 1 year’s notice. The Company leases slot machines from gaming equipment manufacturers under short-term agreements. Most of the slot machine leases have variable rent structures, with amounts determined based on the performance of those machines. Certain others are short-term in nature, with fixed payment amounts. The Company has an operating ground lease with the Maryland Department of Natural Resources for approximately 270 acres in the Rocky Gap State Park on which Rocky Gap is situated. The Company leases approximately 20 acres of land in Laughlin, Nevada for the Laughlin Event Center and four parcels of land in Pahrump, Nevada on which the Gold Town Casino is located.

The Company leases approximately 4.5 acres of undeveloped land in Carson City. Upon the adoption of Topic 842, the Company wrote off the associated ROU asset for this land lease of $9 million to its beginning balance of retained earnings as of January 1, 2019. The Company is also lessee for nine taverns and locations subject to space lease agreements that it does not plan to develop, operate, or sub-lease. The Company wrote off the associated ROU asset for these eleven leases of $3 million to its beginning balance of retained earnings as of January 1, 2019.

The Company leases one of its tavern locations and its office headquarters building from a related party. See Note 12, Related Party Transactions, for more detail.

The current and long-term obligations under finance leases are included in “current portion of long-term debt, net and finance leases” and “long-term debt, net and finance leases”, respectively. The majority of the finance leases related to vehicles with minimum lease payment terms of four years or less, and external and internal lighting and renovations at The Strat.

		Three Months Ended
(In thousands)	Classification	March 31, 2019
Operating lease cost
Operating lease cost	Operating and SG&A expenses	$	11,640
Variable lease cost	Operating and SG&A expenses		4,186
Short-term lease cost	Operating and SG&A expenses		1,049
Total operating lease cost		$	16,875

Finance lease cost
Amortization of lease assets	Depreciation and amortization	$	494
Interest on lease liabilities	Interest expense, net		98
Total finance lease cost		$	592

	Three Months Ended
(In thousands)	March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	11,471
Operating cash flows from finance leases		98
Financing cash flows from finance leases		367

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	31,685
Finance leases		849

(In thousands, except lease term and discount rate)	March 31, 2019
Operating leases
Operating lease right-of-use assets, gross	$	172,394
Accumulated amortization		(9,350	)
Operating lease right-of-use assets, net	$	163,044

Current portion of operating leases	$	36,050
Noncurrent operating leases		142,444
Total operating lease liabilities	$	178,494

Finance leases
Property and equipment, gross	$	7,966
Accumulated depreciation		(2,117	)
Property and equipment, net	$	5,849

Current portion of finance leases, net	$	1,798
Noncurrent finance leases, net		5,750
Total finance lease liabilities	$	7,548

Weighted Average Remaining Lease Term
Operating leases	10.0 years
Finance leases	19.9 years

Weighted Average Discount Rate
Operating leases		6.3	%
Finance leases		6.1	%

	Operating			Finance
(In thousands)	Leases			Leases			Total
Remaining 2019	$	34,456		$	1,721		$	36,177
2020		30,099			1,791			31,890
2021		28,779			1,203			29,982
2022		22,304			581			22,885
2023		16,924			491			17,415
Thereafter		114,285			7,248			121,533
Total lease payments		246,847			13,035			259,882
Less: interest		(68,353	)		(5,487	)		(73,840	)
Present value of lease liabilities	$	178,494		$	7,548		$	186,042

As of March 31, 2019, the Company does not have any leases that have not yet commenced but that create significant rights and obligations.

(In thousands)	Operating Leases
Remaining 2019	$	3,963
2020		3,995
2021		3,272
2022		2,433
2023		1,763
Thereafter		2,546
Total future minimum rentals	$	17,972

For the three months ended March 31, 2018, operating lease rental expense, calculated on a straight-line basis, was $9.4 million, $0.4 million and $3.6 million for space lease agreements, related party leases and other operating leases, respectively. The Company recorded rental revenue of $1.7 million for the three months ended March 31, 2018.