NOTE 3: LEASES

In the first quarter of 2019, the Company adopted Topic 842 utilizing the optional transition method provided in ASU No. 2018-11, which allows for a prospective adoption with a cumulative-effect adjustment to the opening balance sheet as of the adoption date without restatement of prior years. The Company elected the package of practical expedients as permitted by the transition guidance allowing the Company to carry forward the historical assessment of whether contracts contain or are leases, classification of leases and the remaining lease terms.

Upon adoption, the Company recognized a right-of-use asset of $158 million and a right-of-use liability of $174 million. The Company’s deferred rent balance of $18 million as of December 31, 2018 was reclassified to the right-of-use asset upon adoption. The Company also recognized a cumulative-effect adjustment to retained earnings of approximately $13 million, net of tax, which represents deferred gains previously recorded on the consolidated balance sheet related to historical sale lease-back transactions.

The Company has operating leases primarily for office buildings, studios, and transmission sites/equipment. Depending on the type of lease, the original lease terms generally range from less than 12 months to 40 years. The remaining terms of the Company’s leases range from 3 months to 15 years. Certain leases, however, are subject to automatic and continuous renewals. The weighted-average remaining lease term of the Company’s operating leases is 7.9 years. The weighted average discount rate is 6.65%. Total operating lease costs for the three months ended March 31, 2019 were $9 million.

Supplemental unaudited Condensed Consolidated Statements of Cash Flows information related to leases was as follows (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	$	8,827

As of March 31, 2019, maturities of operating lease liabilities were as follows (in thousands):



2019 (excluding the three months ended March 31, 2019)	$	25,761
2020	32,704
2021	25,271
2022	24,851
2023	23,698
Thereafter	88,850
Total lease payments	221,135
Less: imputed interest	53,107
Total operating lease liabilities	$	168,028

As of December 31, 2018, the Company’s future minimum lease payments under non-cancelable operating leases, as disclosed in Note 10 to the Company’s audited consolidated financial statements for the year ended December 31, 2018, were as follows (in thousands):



2019	$	33,042
2020	31,035
2021	22,496
2022	22,004
2023	20,798
Thereafter	91,961
Total lease payments	$	221,336

As of March 31, 2019, the Company has executed non-cancelable operating leases primarily related to a studio and transmission sites/equipment that have not yet commenced. The estimated future minimum lease commitments for these leases are $12 million. These leases are expected to commence in 2019 and have terms ranging from 11 to 15 years. These leases have not been included in the tables above.