We recognize lease expense on a straight-line basis over the term of the lease. The components of lease costs for the three and nine months ended September 30, 2019 were as follows, in thousands:


		Three Months Ended		Nine Months Ended
Lease Cost	Classification	September 30, 2019		September 30, 2019
Operating lease cost (a)	Selling, general and administrative expenses	$	4,253	$	12,650
Sublease (income) (b)	Selling, general and administrative expenses		(37)		(328)
Net lease cost		$	4,216	$	12,322

(a)	Includes expense related to short-term leases and variable payments, which were not significant.

(b)	Does not include rental revenue from leases of hardware consoles to customers, which was not significant.

Supplemental cash flow information for the nine months ended September 30, 2019 was as follows:


	Nine Months Ended
	September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities	$	11,028
Right-of-use assets obtained in exchange for lease obligations	$	7,431

Generally, our lease agreements do not specify an implicit rate. Therefore, we estimate our incremental borrowing rate, which is defined as the interest rate we would pay to borrow on a collateralized basis, considering such factors as length of lease term and the risks of the economic environment in which the leased asset operates. As of September 30, 2019, the following disclosures for remaining lease term and incremental borrowing rates were applicable:


		September 30, 2019
Weighted average remaining lease term		12.4 years
Weighted average discount rate		3.3%

Schedule of Minimum Payments Under Operating Lease Agreements

As previously disclosed in our 2018 Form 10-K under the prior guidance of ASC 840, minimum payments under operating lease agreements as of December 31, 2018 were as follows, in thousands:


Year ended December 31,	Operating Leases
2019	$	13,421
2020		11,319
2021		9,995
2022		8,053
2023		6,953
Thereafter		52,754
Total minimum lease payments	$	102,495