Leases

3 Months Ended

Mar. 31, 2020

Leases

Leases

9. Leases

The Company has operating leases for classroom site locations, office space, office equipment, and optical fiber communication lines. These leases have terms that range from 9 months to 10 years. At lease inception, we determined the lease term by assuming no exercises of renewal options, due to the Company’s constantly changing geographical needs for its university partners. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets and we recognize lease expense for these leases on a straight-line basis over the lease term. The Company has operating lease costs of $1,441 and $865 for the three-month periods ended March 31, 2020 and 2019, respectively.

As of March 31, 2020, the Company had $20,206 of non-cancelable operating lease commitments, primarily for classroom site locations and office space, that has not yet commenced. These operating leases will commence in 2020 with an average lease term of 9.5 years. The Company’s weighted-average remaining lease term relating to its operating leases is 8.63 years, with a weighted-average discount rate of 4.16%. As of March 31, 2020, the Company had no financing leases.

Future payment obligations with respect to the Company’s operating leases, which were existing at March 31, 2020, by year and in the aggregate, are as follows:

Year Ending December 31,	Amount
2020	$	3,605
2021		5,502
2022		5,370
2023		4,769
2024		4,348
Thereafter		19,395
Total lease payments	$	42,989
Less interest		7,067
Present value of lease liabilities	$	35,922