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Leases
9 Months Ended
Sep. 30, 2019
Leases [Abstract]  
Leases Leases
We have operating leases for buildings, equipment and vehicles. Existing leases have remaining terms of less than 1 year to 8 years. Some leases contain options to extend the lease, usually for up to 5 years, and termination options.
Operating lease right-of-use assets, net, consisted of the following (in thousands):
 
 
September 30, 2019
 
 
Gross Amount
 
Accumulated Amortization
 
Net
Operating lease right-of-use buildings
 
$
6,041

 
$
(971
)
 
$
5,070

Operating lease right-of-use equipment
 
68

 
(26
)
 
42

Operating lease right-of-use vehicles
 
344

 
(104
)
 
240

Total
 
$
6,453

 
$
(1,101
)
 
$
5,352


In the first half of 2019, we entered into a new operating lease for our corporate headquarters in South San Francisco, California which is expected to commence in early 2020. The lease term is approximately 10 years. We expect to recognize a right-of-use asset and lease liability of approximately $47.4 million, based on our current incremental collateralized borrowing rate, as a result of this lease.
(in thousands)
 
 
Nine Months Ended September 30, 2019
Operating lease cost (including variable costs)
 
 
$
4,660

Variable costs including non-lease component
 
 
$
2,051

 
 
 
 
Supplemental information:
 
 
 
Cash paid for amounts included in the measurement of operating lease liabilities (included in net cash used in operating activities)
 
 
 
   Operating cash flows from operating leases
 
 
$
3,068

 
 
 
 
 
 
 
September 30, 2019
Weighted average remaining lease term (in years)
 
 
4.6

 
 
 
 
Weighted average discount rate
 
 
5.1
%

Future minimum lease payments and minimum sublease income under non-cancelable operating leases as of September 30, 2019, were as follows (in thousands):
Fiscal Year
 
Minimum Lease Payments for Operating Leases
 
Minimum Sublease Income
 
Net Amount
2019 (remainder of the year)
 
$
996

 
$
(132
)
 
$
864

2020
 
1,956

 
(131
)
 
1,825

2021
 
1,267

 

 
1,267

2022
 
932

 

 
932

2023
 
720

 

 
720

Thereafter
 
1,800

 

 
1,800

Total future minimum payments (income)
 
$
7,671

 
$
(263
)
 
$
7,408

Less: imputed interest
 
(849
)
 
 
 
 
Total
 
$
6,822

 
 
 
 
 
 
 
 
 
 
 
September 30, 2019
 
 
 
 
 
 
Operating lease liabilities, current
 
$
2,363

 
 
 
 
Operating lease liabilities, non-current
 
4,459

 
 
 
 
Total
 
$
6,822

 
 
 
 

Disclosures related to periods prior to adoption of ASC 842
Operating lease rent expense, net of amortization of lease incentives and sublease income was $1.2 million and $3.6 million for the three and nine months ended September 30, 2018, respectively for the prior year comparative periods before the adoption of ASC 842.
As of December 31, 2018, future minimum lease payment obligations and minimum sublease income, net of expenses, under noncancelable operating leases before the adoption of ASC 842 were disclosed as follows (in thousands):
Fiscal Year
 
Minimum Lease Payments for Operating Leases
 
Minimum Sublease Income
 
Net Amount
2019
 
$
4,184

 
$
(520
)
 
$
3,664

2020
 
2,213

 
(164
)
 
2,049

2021
 
1,245

 

 
1,245

2022
 
827

 

 
827

2023
 
552

 

 
552

Thereafter
 
1,241

 

 
1,241

Total future minimum payments (income)
 
$
10,262

 
$
(684
)
 
$
9,578