On January 1, 2019, the Company adopted updated accounting guidance which requires lessees in leasing arrangements to recognize a right-of-use asset and a liability to make lease payments on the balance sheet.

The Company leases commercial real estate, including office buildings and office space, and also leases certain equipment. The Company has elected the practical expedient for its leases of commercial real estate whereby it does not separately account for nonlease components (e.g., common-area maintenance costs) from the associated lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) and instead accounts for both components as a single lease component. Variable lease costs, which include any variable lease and nonlease components and rents that vary based on changes to an index or rate, are expensed as incurred.

Most of the Company’s leases of commercial real estate include one or more options to renew, with renewal terms that can extend the lease term from one to five years, and some leases include options to terminate the lease within the first year.

The Company has elected the practical expedient which allows for leases with an initial term of 12 months or less to be excluded from recognition on the balance sheet and for which lease expense is recognized on a straight-line basis over the lease term.

As most of the Company’s leases do not provide an implicit discount rate, the Company applies its incremental borrowing rate, which is based on the information available as of the commencement date, in determining the present value of lease payments.

(in thousands)	Classification		March 31, 2019
Assets
Operating lease assets	Operating lease assets	$	309,880
Finance lease assets	Other assets		4,838
Total lease assets		$	314,718

Liabilities
Operating lease liabilities	Operating lease liabilities	$	333,964
Finance lease liabilities	Notes and contracts payable		5,078
Total lease liabilities		$	339,042

(in thousands)	Classification	Three Months Ended March 31, 2019
Operating lease cost	Other operating expenses	$	22,093
Finance lease cost:
Amortization of lease assets	Depreciation and amortization		573
Interest of lease liabilities	Interest		56
Variable lease cost	Other operating expenses		6,989
Short-term lease cost	Other operating expenses		461
Sublease income	Information and other		(477	)
Net lease cost		$	29,695

Future minimum lease payments under operating and finance leases with noncancelable lease terms, as of March 31, 2019, are as follows:


(in thousands)		Operating Leases			Finance Leases			Total
Remainder of 2019	$	65,448		$	1,415		$	66,863
2020		78,098			1,432			79,530
2021		63,304			1,130			64,434
2022		51,791			1,036			52,827
2023		37,740			434			38,174
2024		26,021			—			26,021
Thereafter		57,068			—			57,068
Total lease payments		379,470			5,447			384,917
Interest		(45,506	)		(369	)		(45,875	)
Present value of lease liabilities	$	333,964		$	5,078		$	339,042

	March 31, 2019
Weighted-average remaining lease terms (years):
Operating leases	5.7
Finance leases	3.6
Weighted-average discount rates:
Operating leases	4.32	%
Finance leases	4.25	%

(in thousands)		Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	21,879
Operating cash flows from finance leases	$	56
Financing cash flows from finance leases	$	474
Operating lease assets obtained in exchange for new operating lease liabilities	$	10,376

Future minimum lease payments under operating leases with noncancelable lease terms, as of December 31, 2018, are as follows:

Year	in thousands
2019	$	76,375
2020		68,026
2021		54,853
2022		41,859
2023		28,948
Thereafter		64,732
Total lease payments	$	334,793

Total rental expense for all operating leases was $22.2 million for the three months ended March 31, 2018.