Leases (Tables)

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Lease, Cost

The following table presents the components of the Company’s lease cost, lease term and discount rate during the three and six months ended June 30, 2020 (in thousands, except years and percentages):

	Three Months Ended				Six Months Ended
	June 30, 2020		June 30, 2019		June 30, 2020			June 30, 2019
Lease Cost
Operating lease cost	$	1,905	$	1,686	$	3,792		$	3,453
Finance lease cost:
Amortization of right-of-use assets	645		—		1,316			—
Interest on lease liabilities	360		—		755			—
Variable lease cost(1)	1,439		846		2,892			1,604
Total lease costs	$	4,349	$	2,532	$	8,755		$	5,057
Weighted Average Remaining Lease Term
Operating leases					9.5 years			10.3 years
Finance leases					14.5 years			—
Weighted Average Discount Rate
Operating leases					6.19		%	6.20		%
Finance leases					5.42		%	—		%

⁽¹⁾ Variable lease costs represent payments that are dependent on usage, a rate or index. Variable lease cost primarily relates to common area maintenance charges for its real estate leases as the Company elected not to separate non-lease components from lease components upon adoption of ASC 842.

Lessee, Operating Lease, Liability, Maturity

The following table is a schedule, by years, of maturities of the Company's operating and finance lease liabilities as of June 30, 2020 (in thousands):

	Operating Lease Payments		Finance Lease Payments
Remainder of 2020	$	7,398	$	2,433
2021	7,050		2,465
2022	6,713		2,514
2023	6,578		2,563
2024	6,250		2,614
Thereafter	33,424		27,292
Total undiscounted lease payments(1)	67,413		39,881
Less imputed interest	(17,042)		(12,663)
Present value of lease liabilities	$	50,371	$	27,218

⁽¹⁾ The table above excludes the estimated future minimum lease payment for the 1310 Harbor Bay Lease due to uncertainty around the timing of when the 1310 Harbor Bay Lease will commence and payments will be due. The total estimated lease payments over the 15 year lease term will be calculated based on the total development costs incurred in connection with the development of the building which will be determined upon substantial completion of the building.

Finance Lease, Liability, Maturity

The following table is a schedule, by years, of maturities of the Company's operating and finance lease liabilities as of June 30, 2020 (in thousands):

	Operating Lease Payments		Finance Lease Payments
Remainder of 2020	$	7,398	$	2,433
2021	7,050		2,465
2022	6,713		2,514
2023	6,578		2,563
2024	6,250		2,614
Thereafter	33,424		27,292
Total undiscounted lease payments(1)	67,413		39,881
Less imputed interest	(17,042)		(12,663)
Present value of lease liabilities	$	50,371	$	27,218

⁽¹⁾ The table above excludes the estimated future minimum lease payment for the 1310 Harbor Bay Lease due to uncertainty around the timing of when the 1310 Harbor Bay Lease will commence and payments will be due. The total estimated lease payments over the 15 year lease term will be calculated based on the total development costs incurred in connection with the development of the building which will be determined upon substantial completion of the building.

Schedule of Cash Flow, Supplemental Disclosures

Supplemental cash flow information related to leases during the six months ended June 30, 2020 and June 30, 2019 are as follows (in thousands):

	Six Months Ended
	June 30, 2020		June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,740	$	3,354
Financing cash flows from finance leases	$	2,976	$	—
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	830	$	1,111
Finance leases	$	—	$	—