The Company adopted ASU 842, leases, on January 1, 2019 using the modified retrospective approach with a cumulative impact to retained earnings. The adoption of this standard has resulted in an increase in the assets and liabilities on the Company’s Condensed Consolidated Balance Sheet. The Company has completed the review and evaluation of current and potential leases which resulted primarily in our corporate office lease and some minor equipment and vehicle leases qualifying under the new guidance. Based upon this analysis, the impact of the new guidance established a liability and the corresponding asset of $5.4 million at January 1, 2019.

For the year ended December 31, 2019, our leases qualify as operating leases and we did not have any existing or new leases qualifying as financing leases. We have leases for office space and equipment in our corporate office and operating regions as well as vehicles, compressors and surface rentals related to our business operations. In addition, we have offshore Southern California pipeline right-of-way use agreements. Most of our leases, other than our corporate office lease, have an initial term and may be extended on a month-to-month basis after expiration of the initial term. Most of our leases can be terminated with 30-day prior written notice. The majority of our month-to-month leases are not included as a lease liability in our balance sheet under ASC 842 because continuation of the lease is not reasonably certain. Additionally, the Company elected the short-term practical expedient to exclude leases with a term of twelve months or less.

Our corporate office lease does not provide an implicit rate. To determine the present value of the lease payments, we use our incremental borrowing rate based on the information available at the inception date. To determine the incremental borrowing rate, we apply a portfolio approach based on the applicable lease terms and the current economic environment. We use a reasonable market interest rate for our office equipment and vehicle leases.

The following table presents the Company’s right-of-use assets and lease liabilities as of December 31, 2019.

	December 31,
	2019
	(In thousands)
Right-of-use asset	$	4,406

Lease liabilities:
Current lease liability		1,712
Long-term lease liability		2,720
Total lease liability	$	4,432

The following table reflects the Company’s maturity analysis of the minimum lease payment obligations under non-cancelable operating leases with a remaining term in excess of one year (in thousands):

	Office leases		Leased vehicles and office equipment		Total
2020	$	1,603	$	688	$	2,291
2021		1,631		536		2,167
2022		140		59		199
2023 and thereafter		—		—		—
Total lease payments	$	3,374	$	1,283	$	4,657
Less: interest	$	177	$	48	$	225
Present value of lease liabilities	$	3,197	$	1,235	$	4,432

The following is a schedule of the Company’s future contractual payment for operating leases prepared in accordance with accounting standards prior to the adoption of ASC 842, as of December 31, 2018 (in thousands):

			Payment or Settlement Due by Period
Operating leases	Total		2019		2020		2021		2022		2023		Thereafter
Operating leases	$	11,846	$	5,893	$	2,072	$	2,109	$	337	$	205	$	1,230

The weighted average remaining lease terms and discount rate for all of our operating leases were as follow as of December 31, 2019:

	December 31,
	2019
Weighted average remaining lease term (years):
Office leases		1.50
Vehicles		0.44
Office equipment		0.08
Weighted average discount rate:
Office leases		3.63	%
Vehicles		0.84	%
Office equipment		0.18	%

During the year ended December 31, 2019, the Company recorded a $4.2 million loss on lease, which relates to the Midstates corporate office lease. The office was vacated in mid-November. Due to excess sublease inventory in the local market, a liability has been accrued for rent and other operating expenses based upon the term and provisions of the lease.

We have instituted internal controls going forward to monitor and evaluate new leases for appropriate accounting under the new guidance.