Leases

9 Months Ended

Sep. 30, 2019

We have noncancellable operating leases consisting of administrative and research and development office space for our Emeryville, California headquarters and former headquarters in San Diego, California that expire in May 2027 and March 2020, respectively. Our Emeryville lease includes a renewal option for an additional five years, which was not included in our determination of the lease term under the legacy lease standard as renewal was not reasonably assured at the inception of the lease. As a result, the renewal option to extend the lease was not included in determining our ROU assets and lease liabilities. Our former headquarters has been subleased to an unrelated third party for the remainder of our original lease term. As part of our acquisition of Modis in September 2019, we assumed the lease for Modis’ headquarters in Oakland, California. The Oakland lease expires in July 2021 and has been included in our ROU assets and lease liabilities in our condensed consolidated balance sheets. As of September 30, 2019, we do not have any material finance leases or service contracts with lease arrangements. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The components of lease costs, which were included in our condensed consolidated statements of operations, were as follows (in thousands):


	Three Months Ended September 30,		Nine Months Ended September 30,
Lease costs
Operating lease cost	$	510	$	1,505
Short-term lease cost⁽¹⁾	142		690
Sublease income	(145)		(435)
Total	$	507	$	1,760

⁽¹⁾Short-term lease cost included $0.2 million related to a short-term lease that expired in March 2019.

Cash paid for amounts included in the measurement of lease liabilities for the nine months ended September 30, 2019 was $1.2 million and was included in net cash used in operating activities in our condensed consolidated statements of cash flows.

Maturities of operating lease liabilities as of September 30, 2019 and lease commitments under noncancellable operating leases as of December 31, 2018 were as follows (in thousands):


	September 30, 2019		December 31, 2018
2019 (remaining 3 months and 12 months, respectively)	$	632	$	1,777
2020	1,986		1,788
2021	1,957		1,839
2022	1,894		1,894
2023	1,951		1,951
Thereafter	7,111		7,296
Total lease payments	15,531		$	16,545
Less imputed interest	(3,005)
Total operating lease liabilities	$	12,526


	September 30, 2019
Current portion of operating lease liabilities	$	1,431
Operating lease liabilities, net of current portion	11,095
Total lease liabilities	$	12,526

As of September 30, 2019, the weighted average remaining lease term was 7.3 years and the weighted average discount rate, weighted based on the remaining balance of lease payments, was 6.0%.