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		June 30, 2019
Assets
Operating lease assets	Operating lease assets	$	300,698
Finance lease assets	Other assets		4,410
Total lease assets		$	305,108

Liabilities
Operating lease liabilities	Operating lease liabilities	$	325,400
Finance lease liabilities	Notes and contracts payable		4,672
Total lease liabilities		$	330,072

(in thousands)	Classification	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
Operating lease cost	Other operating expenses	$	21,469		$	43,562
Finance lease cost:
Amortization of lease assets	Depreciation and amortization		523			1,096
Interest of lease liabilities	Interest		49			105
Variable lease cost	Other operating expenses		8,320			15,309
Short-term lease cost	Other operating expenses		529			990
Sublease income	Information and other		(378	)		(855	)
Net lease cost		$	30,512		$	60,207

Future minimum lease payments under operating and finance leases with noncancelable lease terms, as of June 30, 2019, are as follows:

(in thousands)		Operating Leases			Finance Leases			Total
Remainder of 2019	$	43,357		$	877		$	44,234
2020		79,796			1,464			81,260
2021		65,560			1,155			66,715
2022		53,790			1,059			54,849
2023		39,686			443			40,129
2024		27,952			—			27,952
Thereafter		58,704			—			58,704
Total lease payments		368,845			4,998			373,843
Interest		(43,445	)		(326	)		(43,771	)
Present value of lease liabilities	$	325,400		$	4,672		$	330,072

	June 30, 2019
Weighted-average remaining lease terms (years):
Operating leases	5.6
Finance leases	3.5
Weighted-average discount rates:
Operating leases	4.30	%
Finance leases	4.19	%

(in thousands)		Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	43,624
Operating cash flows from finance leases	$	105
Financing cash flows from finance leases	$	982
Operating lease assets obtained in exchange for new operating lease liabilities	$	17,516

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 $22.6 million and $44.8 million for the three and six months ended June 30, 2018, respectively.