Note 11 - Leases

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Lessee, Operating and Finance Leases [Text Block]

11. Leases

The Company determines if an arrangement is a lease at inception. Operating leases are reported on the Company’s consolidated balance sheet within operating lease ROU assets, operating lease liabilities and accounts payable, accrued expenses and other liabilities. Finance leases are reported on the Company’s consolidated balance sheets within other assets, other liabilities and accounts payable, accrued expenses and other liabilities.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do

not

provide an implicit rate, we use the Company’s incremental borrowing rate based on the information available at the lease’s commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. The lease terms

may

include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. For certain real estate and equipment leases, the Company has lease agreements with lease and non-lease components, which are generally accounted for as a single component.

The Company primarily leases real estate, information technology equipment and data centers on terms that expire on various dates through

2026,

some of which include options to extend the lease for up to

10

years. We evaluate whether to include the option period in the calculation of the ROU asset and lease liability on a lease-by-lease basis.

As of

March 31, 2019,

all operating and finance leases that create significant rights and obligations for the Company have commenced.

The components of lease expense for the

three

months ended

March 31, 2019

were as follows (

in thousands

):

		Three Months Ended March 31, 2019
Operating lease cost	$	1,656
Finance lease cost:
Amortization of right-of-use assets	$	8
Interest on lease liabilities	$	1
Total finance lease cost	$	9

Supplemental cash flow and other information related to leases for the

three

months ended

March 31, 2019

were as follows (

in thousands

):

		Three Months Ended March 31, 2019
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	1,833
Operating cash flows from finance leases	$	1
Financing cash flows from finance leases	$	8
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	219
Finance leases	$	238

Supplemental balance sheet information related to leases as of

March 31, 2019

consisted of the following (

in thousands

):

		March 31, 2019
Operating Leases
Operating lease right-of-use assets	$	20,110
Other current liabilities	$	6,247
Operating lease liabilities	$	18,677
Total operating lease liabilities	$	24,924
Finance Leases
Other Assets	$	334
Other current liabilities	$	106
Other long-term liabilities	$	229
Total finance leases liabiities	$	335

The weighted-average remaining lease term for operating and finance leases are

4.5

years and

3

years, respectively. Weighted-average discount rates amount to

5.7%

and

5.0%

for operating and finance leases, respectively.

Sublease income for the

three

months ended

March 31, 2019

and

2018

was

$0.5

million and

$0.4

million, respectively. 

Maturities of lease liabilities were as follows (

in thousands

):

Year ended December 31,		Operating Leases			Finance Leases
2019 (excluding the three months ended March 31, 2019)	$	5,575		$	90
2020		7,272			120
2021		5,568			120
2022		3,275			29
2023		3,034			-
Thereafter		3,560			-
Total lease payments		28,284			359
Less: Imputed interest		(3,360	)		(24	)
Total lease obligation	$	24,924		$	335