Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

The determination of the discount rate used to calculate the present value of the right-of-use assets and lease liabilities depends on whether an interest rate is specified in the lease or not. If the lease specifies a rate, that rate is used when calculating the present value of lease payments. If the rate is not readily determinable, which is generally the case for the Company, the Company’s incremental borrowing rate (“IBR”) as of the date of inception of the lease is used (for initial measurement, the IBR was determined as of the adoption date of the standard). The IBR is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. The Company used a ratings benchmark report against its peers in the technology sector.

The Company has operating leases for its corporate offices and other service agreements. The Company's leases have remaining lease terms of 1 to 12 years, some of which include options to extend. The Company's lease expense for the three months ended June 30, 2020 and 2019, consisting entirely of operating leases, was approximately $3.3 million and $3.2 million, respectively. The Company's lease expense for the six months ended June 30, 2020 and 2019 was approximately $6.8 million and $6.1 million, respectively. Operating lease payments, which reduced operating cash flows, amounted to $4.2 million and $3.2 million for the six months ended June 30, 2020 and 2019, respectively.

During the six months ended June 30, 2020, the Company decided to abandon the Berlin office. The cease use date was March 31, 2020. According to ASC 842, the Company elected to apply the "loss of straight-line lease cost", amortizing the

remaining right-of-use asset of approximately $0.4 million from the decision date to the cease use date. This expense is included in restructuring costs in the condensed consolidated statements of operations for the six months ended June 30, 2020.

Supplemental balance sheet information related to leases was as follows:



	As of June 30, 2020			As of December 31, 2019
Operating Leases	(in thousands, except lease term and discount rate)
Right-of-use asset	$	13,156		$	15,680

Current operating lease liability	6,196			6,602
Long term operating lease liability	10,725			12,865
Total operating lease liability	$	16,921		$	19,467

Weighted Average Remaining Lease Term
Operating leases	3.4 years			3.5 years

Weighted Average Discount Rate
Operating leases	7		%	7		%

Schedule of Undiscounted Future Lease Payments



Year ending December 31:	As of June 30, 2020			As of December 31, 2019
2020 (remaining six months for June 30, 2020)	$	3,593		$	7,787
2021	6,707			6,530
2022	3,959			3,746
2023	2,110			1,925
2024	1,336			1,148
Thereafter	1,196			864
Total undiscounted lease payments	18,901			22,000
Less: present value adjustment	(1,980		)	(2,533		)
Total operating lease liability	$	16,921		$	19,467