Leases (Topic 842) and subsequently issued amendments require a lessee to recognize leases with the term greater than 12 months on the balance sheet. The Company adopted the standard using the modified retrospective approach with an effective date as of the beginning of the fiscal year, January 1, 2019. The comparative period presented is not adjusted and, therefore, those amounts are not presented below. The Company elected the package of transition provisions available for expired or existing contracts, which allowed the Company to carryforward the historical assessments of (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs.

The Company leases real estate property under operating leases. The Company is also a lessee and a sublessor from an accounting perspective in the car rental transactions involving the Select Express Drive Partner. For leases with a term greater than 12 months, the Company records the related right-of-use asset and lease liability at the present value of lease payments over the term. The Company does not separate lease and non-lease components of contracts for real estate property leases.

The Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company estimates its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The Company determines its incremental borrowing rate based on the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment.

The Company leases real estate property primarily for office space at approximately 140 locations with approximately 80 locations having an initial term of 12 months or longer. These leases are classified as operating leases. The remaining lease terms vary from few months to 11 years. For certain leases the Company has options to extend the lease term for periods varying from one to five years. These renewal options are not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options. For leases with an initial term of 12 months or longer, the Company has recorded a right-of-use asset and lease liability representing the fixed component of the lease payment.

Under the Express Drive program, the Company connects drivers who need access to a car with third-party rental car companies. The Company facilitates the car rental transactions between car rental companies and drivers. During 2018 the Company expanded its Express Drive program with the Select Express Drive Partner. Under the Company’s agreement with the Select Express Drive Partner (the “head lease”), the Company is required to pay fleet operating costs over periods ranging from two to three years for vehicles that the Company has committed will remain in a dedicated fleet to be ready to be rented by drivers using the Lyft Platform. Fleet operating costs include monthly fixed payments and other vehicle operating costs. Such payments are required to be made regardless of whether the vehicles are rented by drivers using the Lyft Platform. Drivers who rent vehicles through the arrangement with the Select Express Drive Partner are charged rental fees for which the Company collects such payments from the driver. The Company collects rental fees by deducting such amounts from the drivers’ earnings on the Lyft Platform, or through charging the driver’s credit card.

The Company is a principal in the car rental transactions involving the Select Express Drive Partner as the Company becomes a lessee for each vehicle prior to its rental by a driver and is committed to the payment of fixed monthly amounts and other fleet operating costs. The Company subleases the vehicles to drivers when they are rented by drivers and, as a result, the Company considers itself to be the accounting sublessor in its arrangements with drivers. Vehicle leases with the Select Express Drive Partner are classified as operating leases and, accordingly, each sublease representing a car rental transaction with a driver is also an operating lease. The lease term in the car rental sublease is less than a month. Sublease income (revenue) and head lease expense for the Company’s transactions involving the Select Express Drive Partner are recognized on a gross basis in the condensed consolidated financial statements. The revenue recognized under the Select Express Drive Partner program was $17.5 million and $2.6 million for the three months ended March 31, 2019 and 2018, respectively.

The table below presents the lease-related assets and liabilities recorded on the condensed consolidated balance sheet (in thousands):

	March 31, 2019
Assets
Real Estate	$	218,784
Select Express Drive Partner Program		85,821
Total operating lease right-of-use assets	$	304,605
Liabilities
Current
Real Estate	$	32,031
Select Express Drive Partner Program		41,645
Noncurrent
Real Estate		214,248
Select Express Drive Partner Program		49,507
Total operating lease liabilities	$	337,431
Weighted-average remaining lease term (years)
Real Estate		6.7
Select Express Drive Partner Program		2.0
Weighted-average discount rate⁽¹⁾
Real Estate		6.8	%
Select Express Drive Partner Program		6.5	%

(1)	Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019.

The table below presents certain information related to the lease costs for operating leases for the three months ended March 31, 2019 (in thousands):

	Real Estate		Select Express Drive Partner Program		Total Operating Leases
Operating lease cost	$	13,158	$	10,381	$	23,539
Short-term lease cost		1,733		—		1,733
Variable lease cost		1,363		1,637		3,000
Total lease cost	$	16,254	$	12,018	$	28,272

Cash paid for amounts included in the measurement of operating lease liabilities was $15.8 million for the three months ended March 31, 2019.

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the condensed consolidated balance sheet as of March 31, 2019 (in thousands):

	Real Estate			Select Express Drive Partner Program			Total Operating Leases
2019, remainder	$	37,128		$	31,218		$	68,346
2020		52,173			45,478			97,651
2021		50,034			18,977			69,011
2022		45,980			2,489			48,469
2023		32,656			—			32,656
Thereafter		97,870			—			97,870
Total minimum lease payments		315,841			98,162			414,003
Less: amount of lease payments representing interest		(69,562	)		(7,010	)		(76,572	)
Present value of future minimum lease payments		246,279			91,152			337,431
Less: current obligations under leases		(32,031	)		(41,645	)		(73,676	)
Long-term lease obligations	$	214,248		$	49,507		$	263,755

As of March 31, 2019, the Company had additional real estate leases that had not yet commenced with aggregate future lease payments of approximately $145.6 million. These leases are expected to commence between 2019 and 2020 with lease terms of two years to ten years.

Future lease payments receivable in car rental transactions under the Select Express Drive Program are not material since the lease term is less than a month.

As of December 31, 2018, the future minimum lease payments required under noncancelable operating leases as defined under the previous accounting guidance of ASC Topic 840 were as follows (in thousands):

	Real Estate		Select Express Drive Partner Program		Total Operating Leases
2019	$	51,221	$	30,129	$	81,350
2020		53,380		34,597		87,977
2021		52,794		6,439		59,233
2022		48,813		—		48,813
2023 and Thereafter		133,670		—		133,670
Total minimum lease payments	$	339,878	$	71,165	$	411,043