Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

We have operating leases for our corporate offices in Canada and finance leases for furniture and equipment. Our leases have remaining lease terms of fifteen months to forty nine months, and our primary operating leases include options to extend the leases for four years. Future renewal options that are not likely to be executed as of the balance sheet date are excluded from right-of-use assets and related lease liabilities.

We report operating leased assets, as well as operating lease current and noncurrent obligations on our balance sheets for the right to use the building in our business. Our finance leases represent furniture and office equipment; we report the furniture and equipment, as well as finance lease current and noncurrent obligations on our balance sheets.

Generally, interest rates are stated in our leases for equipment. When no interest rate is stated in a lease, however, we review the interest rates implicit in our recent finance leases to estimate our incremental borrowing rate. We determine the rate implicit in a lease by using the most recent finance lease rate, or other method we think most closely represents our incremental borrowing rate.

The components of lease expense were as follows:

	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating lease cost	$	12,091	$	23,397
Finance lease cost:
Amortization of leased assets	$	2,559	$	7,812
Interest on lease liabilities		393		1,325
Total finance lease cost	$	2,952	$	9,137

Supplemental cash flow information related to leases was as follows:

	Nine Months Ended September 30, 2019
Cash paid for amounts included in leases:
Operating cash flows from operating leases	$	20,929
Operating cash flows from finance leases	$	1,325
Financing cash flows from finance leases	$	6,523
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	55,600
Finance leases	$	—

Supplemental balance sheet information related to leases was as follows:

	September 30, 2019
Operating leases:
Operating lease right-of-use assets	$	125,702
Current portion of operating lease obligations	$	28,816
Operating lease obligations, net of current portion		99,651
Total operating lease liabilities	$	128,467
Finance leases:
Property and equipment, at cost	$	52,065
Accumulated depreciation		(33,842	)
Property and equipment, net	$	18,223
Current portion of finance lease obligations	$	9,511
Finance lease obligations, net of current portion		5,261
Total finance lease liabilities	$	14,772

	Nine Months Ended September 30, 2019
Weighted average remaining lease term
Operating lease	3.9 years
Finance leases	1.6 years
Weighted average discount rate
Operating lease		9.0	%
Finance leases		9.7	%

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

A summary of future minimum payments under non-cancellable operating lease commitment as of September 30, 2019 is as follows:

Years ending December 31,		Total
	2019 (remaining months)	$	9,801
	2020		39,203
	2021		39,203
	2022		39,203
	2023		26,135
	Total lease liabilities	$	153,545
	Less amount representing interest		(25,078	)
	Total		128,467
	Less current portion		(28,816	)
		$	99,651

The following is a schedule of minimum future rentals on the non-cancelable finance leases as of September 30, 2019:

Year ending December 31,	Total
2019 (remaining months)	$	2,622
2020		10,489
2021		2,804
Total minimum payments required:		15,915
Less amount representing interest:		(1,143	)
Present value of net minimum lease payments:		14,772
Less current portion		(9,511	)
	$	5,261

Disclosures related to periods prior to adoption of ASC 842

Minimum future lease payments under lease obligations as of December 31, 2018 are as follows:

Year Ended December 31,	Capital			Operating
2019	$	10,222		$	29,779
2020		10,222			38,202
2021		2,736			38,202
2022		—			38,202
2023		—			25,477
Total future minimum lease payments		23,180			169,862
Less amount representing interest		(2,484	)
Present value of net minimum lease payment		20,696
Less current portion		(8,580	)
	$	12,116