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Leases
9 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Leases

(16) Leases

The Company’s leases relate primarily to office facilities that expire on various dates from 2020 through 2029. The terms of the Company's non-cancelable operating lease arrangements typically contain fixed lease payment which increases over the term of the lease at fixed rates, rent holidays and provide for additional renewal periods. Lease expense is recognized over the term of the lease on a straight-line basis. All of the Company’s leases are classified as operating leases. The Company has determined that periods covered by options to extend the Company’s leases are excluded from the lease term as the Company is not reasonably certain the Company will exercise such options. Operating lease expense, including expenses related to short-term leases, were $1.5 million and $1.2 million for the three months ended September 30, 2020 and 2019, respectively. Operating lease expense, including expenses related to short-term leases, were $4.5 million and $3.5 million for the nine months ended September 30, 2020 and 2019, respectively.

The Company records its right-of-use (“ROU”) asset within other assets (long term) and its operating lease liabilities within other current and long-term liabilities.

Additional information related to the Company’s leases is as follows (in thousands, except lease term and discount rate):

 

 

 

As of

 

 

As of

 

 

 

September 30, 2020

 

 

December 31, 2019

 

Balance sheet information

 

 

 

 

 

 

 

 

ROU assets

 

$

15,940

 

 

$

13,071

 

Lease liabilities, current

 

$

4,354

 

 

$

3,567

 

Lease liabilities, non-current

 

 

15,209

 

 

 

11,823

 

Total lease liabilities

 

$

19,563

 

 

$

15,390

 

Supplemental data

 

 

 

 

 

 

 

 

Weighted average remaining lease term

 

4.72 years

 

 

4.11 years

 

Weighted average discount rate

 

 

7.00

%

 

 

7.00

%

 

 

 

Nine Months Ended

September 30,

 

 

 

2020

 

 

2019

 

Cash paid for amounts included in lease liabilities

 

$

3,615

 

 

$

2,648

 

ROU assets obtained in exchange for new lease obligations

 

 

5,648

 

 

 

17,726

 

 

Maturities of lease liabilities as of September 30, 2020 were as follows (in thousands):

 

Year ending December 31,

 

 

 

 

2020 (for the remaining three months)

 

$

1,349

 

2021

 

 

5,410

 

2022

 

 

5,129

 

2023

 

 

5,010

 

2024

 

 

2,563

 

Thereafter

 

 

3,661

 

Total undiscounted lease payments

 

 

23,122

 

Less: imputed interest

 

 

(3,559

)

Total lease liabilities

 

$

19,563

 

 

The following table presents components of lease expense (in thousands):

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Operating lease expense

 

$

1,273

 

 

$

1,069

 

 

$

3,698

 

 

$

2,802

 

Short-term lease expense(1)

 

 

266

 

 

 

138

 

 

 

818

 

 

 

690

 

 

 

 

1,539

 

 

 

1,207

 

 

 

4,516

 

 

 

3,492

 

Less: Sublease income

 

 

(98

)

 

 

(33

)

 

 

(236

)

 

 

(45

)

Total lease expense

 

$

1,441

 

 

$

1,174

 

 

$

4,280

 

 

$

3,447

 

 

(1)

Short-term lease expense includes all leases with lease terms ranging from less than one month to one year.

As of September 30, 2020, the Company does not have any leases that have not yet commenced that create significant rights and obligations.