Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

Leases

We have operating leases for office facilities and finance leases for computer and office equipment. Our leases have remaining terms of less than one year to just over twelve years, some of which include one or more options to renew, with renewal terms up to five years and some of which include options to terminate the leases within the next two to five years. The ROU assets and liabilities at December 31, 2019 assume the option to early terminate one of our leases in 2021 and one of our leases in 2025.

In August 2019, we took possession of the leased office space for our future headquarters in Columbia, Maryland. We recorded an initial ROU asset of $32.3 million and a lease liability of $32.0 million, with a lease term of 147 months. In November 2019, we amended this lease to increase square footage and modify the timing of future payments. Future lease payments related to this lease are $72.2 million and the lease payments are expected to commence in the second quarter of 2021.

The components of lease expense were as follows:

	Year Ended December 31,
(in thousands)	2019		2018
Operating lease cost	$	6,045	$	3,694
Finance lease cost
Amortization of ROU assets	$	607	$	614
Interest on lease liabilities	7		35
Total finance lease cost	$	614	$	649

Rent expense for short-term leases in 2019 and 2018 was not material.

Supplemental information related to leases was as follows:

	December 31, 2019	December 31, 2018
Operating leases
Weighted average remaining lease term	10.0 years	3.1 years
Weighted average discount rate	5.8%	7.1%

	Year Ended December 31,
(in thousands)	2019		2018
Supplemental cash flow information related to leases:
Operating cash payments for operating leases	$	4,452	$	4,313
Operating cash payments for finance leases	7		35
ROU assets obtained in exchange for lease obligations
Operating leases	$	39,170	$	1,525
Finance leases	11		15

Maturities of operating lease liabilities at December 31, 2019 were as follows:

(in thousands)
Year ending December 31,
2020	$	5,308
2021	6,940
2022	7,048
2023	7,036
2024	7,171
Thereafter	50,951
Total lease payments	84,454
Less: Imputed interest	(24,077		)
Less: Tenant incentives	(14,505		)
Total	$	45,872

Leases

Leases

We have operating leases for office facilities and finance leases for computer and office equipment. Our leases have remaining terms of less than one year to just over twelve years, some of which include one or more options to renew, with renewal terms up to five years and some of which include options to terminate the leases within the next two to five years. The ROU assets and liabilities at December 31, 2019 assume the option to early terminate one of our leases in 2021 and one of our leases in 2025.

In August 2019, we took possession of the leased office space for our future headquarters in Columbia, Maryland. We recorded an initial ROU asset of $32.3 million and a lease liability of $32.0 million, with a lease term of 147 months. In November 2019, we amended this lease to increase square footage and modify the timing of future payments. Future lease payments related to this lease are $72.2 million and the lease payments are expected to commence in the second quarter of 2021.

The components of lease expense were as follows:

	Year Ended December 31,
(in thousands)	2019		2018
Operating lease cost	$	6,045	$	3,694
Finance lease cost
Amortization of ROU assets	$	607	$	614
Interest on lease liabilities	7		35
Total finance lease cost	$	614	$	649

Rent expense for short-term leases in 2019 and 2018 was not material.

Supplemental information related to leases was as follows:

	December 31, 2019	December 31, 2018
Operating leases
Weighted average remaining lease term	10.0 years	3.1 years
Weighted average discount rate	5.8%	7.1%

	Year Ended December 31,
(in thousands)	2019		2018
Supplemental cash flow information related to leases:
Operating cash payments for operating leases	$	4,452	$	4,313
Operating cash payments for finance leases	7		35
ROU assets obtained in exchange for lease obligations
Operating leases	$	39,170	$	1,525
Finance leases	11		15

Maturities of operating lease liabilities at December 31, 2019 were as follows:

(in thousands)
Year ending December 31,
2020	$	5,308
2021	6,940
2022	7,048
2023	7,036
2024	7,171
Thereafter	50,951
Total lease payments	84,454
Less: Imputed interest	(24,077		)
Less: Tenant incentives	(14,505		)
Total	$	45,872