Leases

3 Months Ended

Mar. 31, 2019

NOTE 11. Leases

Leases. The Company is obligated as a lessee under certain non-cancelable operating leases for office space, and is also obligated to pay insurance, maintenance and other executory costs associated with the leases. As of March 31, 2019, Cars.com’s scheduled future minimum lease payments under operating leases having initial or remaining noncancelable lease terms of more than one year, were as follows (in thousands):

Remaining nine months of 2019	$	2,735
2020		4,368
2021		4,014
2022		3,751
2023		3,850
Thereafter		35,117
Total minimum lease payments		53,835
Less: Imputed interest ⁽¹⁾		(19,411	)
Present value of the minimum lease payments		34,424
Less: Current maturities of lease obligations		(1,494	)
Long-term lease obligations	$	32,930

(1)

The Company’s lease agreements do not provide a readily determinable implicit rate nor is it available from the Company’s lessors. Therefore, in order to discount lease payments to present value, the Company has estimated its incremental borrowing rate based on information available at either the lease transition date (for those leases that commenced prior to January 1, 2019) or the lease commencement date (for those leases that commenced after January 1, 2019).

As of March 31, 2019, the Company’s operating lease assets and liabilities were $17.9 million and $34.4 million, respectively. The difference between the operating lease assets and the operating lease liabilities is primarily due to a lease incentive received in 2017 related to the 300 South Riverside Lease in Chicago, Illinois. Other information related to the Company’s operating leases for the three months ended March 31, 2019 is as follows (in thousands, except percentage):

Income statement information:
Operating lease cost	$	958
Short-term lease cost		381
Variable lease cost		994
Total lease cost	$	2,333

Other information:
Cash paid for operating leases	$	1,224
Weighted-average remaining lease term (in months)		139
Weighted-average discount rate		7.4	%