10. LEASES

The Company determines if an arrangement is a lease at inception. ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate in each of the jurisdictions in which its subsidiaries operate to calculate the present value of lease payments. Lease terms may include options to extend or terminate the lease. These options are included in the lease term when it is reasonably certain that the Company will exercise those options. Operating lease expense is recorded on a straight-line basis over the lease term.

The Company accounts for lease agreements with lease and non-lease components as a single lease component for all asset classes. The Company does not establish ROU assets or lease liabilities for operating leases with terms of 12 months or less.

The Company’s operating and finance leases include land, casino space, corporate offices, and gaming and other equipment. The leases have remaining lease terms of one month to 20 years.

The Company has determined that the ROU asset at CCB was impaired based on the losses incurred by the casino since operations began and future forecasts of continued losses due to the current regulatory environment for casinos in England. As a result of this conclusion, the Company impaired $7.3 million related to the CCB ROU asset to impairment – intangible and tangible assets on its consolidated statement of (loss) earnings for the year ended December 31, 2019.

The components of lease expense were as follows:


	For the year ended
Amounts in thousands	December 31, 2019
Operating lease expense	$	6,443

Finance lease expense:
Amortization of right-of-use assets	$	303
Interest on lease liabilities		44
Total finance lease expense	$	347

Short-term lease expense	$	697

Variable lease expense	$	3,502

Variable lease expense relates primarily to rates based on a percentage of gaming revenue, changes in indexes that are excluded from the lease liability and fluctuations in foreign currency related to leases in Poland.

Supplemental cash flow information related to leases was as follows:


	For the year ended
	ended December 31,
Amounts in thousands	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	48
Operating cash flows from operating leases		7,062
Financing cash flows from finance leases		364

Supplemental balance sheet information related to leases was as follows:


	As of
Amounts in thousands	December 31, 2019
Operating leases
Leased right-of-use assets, net	$	37,040

Current portion of operating lease liabilities		4,235
Operating lease liabilities, net of current portion		42,942
Total operating lease liabilities		47,177

Finance leases
Finance lease right-of-use assets, gross		731
Accumulated depreciation		(338)
Property and equipment, net		393

Current portion of finance lease liabilities		161
Finance lease liabilities, net of current portion		217
Total finance lease liabilities		378

Weighted-average remaining lease term
Operating leases		14.4 years
Finance leases		2.7 years

Weighted-average discount rate
Operating leases		4.8%
Finance leases		5.1%

Right-of-use assets obtained - operating leases	$	56,001
Right-of-use assets obtained - finance leases	$	1,477

Maturities of lease liabilities as of December 31, 2019 were as follows:


Amounts in thousands		Operating leases	Finance leases
2020	$	6,129	$	174
2021		6,088		141
2022		5,844		40
2023		5,111		26
2024		4,120		20
Thereafter		41,661		—
Total lease payments		68,953		401
Less imputed interest		(21,776)		(23)
Total	$	47,177	$	378

As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and under the prior lease standard, the following table summarizes the future minimum lease obligations of our operating leases as of December 31, 2018:


Amounts in thousands
2019	$	4,079
2020		2,783
2021		2,748
2022		2,700
2023		2,646
Total	$	14,956