5. Commitments and Contingencies Operating Leases Right-of-use (ROU) assets and lease liabilities are recognized at the present value of future lease payments over the lease term. ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets include any upfront lease payments made and exclude lease incentives. The Company leases its facilities under non-cancelable operating lease agreements. Additionally, these leases often require the Company to pay property taxes, insurance and maintenance costs, which are generally expensed as incurred and are not included in the table below. Certain of these facility leases contain predetermined fixed escalations of the minimum rentals, and the Company recognizes expense for these leases on a straight-line basis over the full term of the lease arrangement. Leases with an initial term of 12 months or less are not recorded on the balance sheets and short-term lease expense is recognized on a straight-line basis over the lease term. The depreciable life of related leasehold improvements is based on the lease term. As of September 30, 2019, our leases have remaining lease terms of less than one year to ten years. Certain leases include early termination and/or extension options; however, exercises of these options are at the Companys sole discretion. As of September 30, 2019, the Company determined it is not reasonably certain it will exercise the options to extend its leases or terminate them early. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants and as of September 30, 2019, the Company is not subleasing to any third parties. The rates implicit in the Companys leases are not readily determinable. Therefore, in order to value the Companys lease liabilities, the Company uses an incremental borrowing rate which reflects the fixed rate at which the Company could borrow a similar amount in the same currency, for the same term, and with similar collateral as in the lease at the commencement date. The result of adoption of ASC 842 was an increase in ROU assets and total lease liabilities of $3.5 million on the Companys condensed consolidated balance sheet. ASC 842 did not have a material impact on our condensed consolidated statements of operations and statements of cash flows. As of September 30, 2019, the Company measures its lease liabilities at the net present value of the remaining lease payments discounted at the weighted average discount rate of 4.12%. The Company's incremental borrowing rate is estimated to approximate the interest rate on similar terms and payments and in economic environments where the leased asset is located. The weighted average remaining term of the Companys operating leases is 9.0 years. As of September 30, 2019, the total lease liabilities are $41.3 million, $3.4 million of which is included in accrued expenses and other current liabilities and $37.9 million is included as long-term operating lease liabilities on the condensed consolidated balance sheet. As of September 30, 2019, the ROU asset balance is $30.3 million. Operating lease costs during the periods presented were as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 (in thousands) Lease cost Operating lease cost $ 790 $ 3,577 Short-term lease cost 884 1,746 Total lease cost $ 1,674 $ 5,323 Facilities costs (including rent and utilities) are considered shared costs and are allocated to departments based on headcount. As such, allocated shared costs are reflected in each cost of revenue and operating expense category. Total rent expense recognized prior to our adoption of ASC 842 was approximately $1.0 million and $2.9 million for the three and nine months ended September 30, 2018, respectively. Other supplemental cash flow information related to operating leases is as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1.2 $ 3.4 Right-of-use assets obtained in exchange for lease liabilities Operating leases $  $ 30.4 At September 30, 2019, we have no financing leases and we have non-cancelable operating lease commitments, excluding variable consideration. The undiscounted annual future minimum lease payments are summarized by year in the table below: Year Ending December 31, (in thousands) 2019 (except the nine months ended September 30) $ 1,191 2020 4,975 2021 5,511 2022 5,478 2023 4,978 Thereafter 27,030 Total minimum lease payments 49,163 Less: interest (7,868 ) Total present value of operating lease liabilities $ 41,295 Less: operating lease liabilities - current $ (3,406 ) Long-term operating lease liabilities $ 37,889