Legal. We are a party to a number of lawsuits, claims and governmental proceedings which are ordinary, routine matters incidental to our business. In addition, in the ordinary course of business, we periodically have disputes with dealers and customers. We do not expect the outcomes of these matters to have, either individually or in the aggregate, a material adverse effect on our financial position or results of operations.

Performance Guarantee Obligations. As of September 30, 2019, we recorded $5.7 million relating to our guarantee of certain specified minimum solar energy production output under our leases and loans, of which we include $3.9 million in other current liabilities and $1.8 million in other long-term liabilities in the unaudited condensed consolidated balance sheet. As of December 31, 2018, we recorded $6.0 million relating to these guarantees, of which $2.6 million is included in other current liabilities and $3.5 million is included in other long-term liabilities in the unaudited condensed consolidated balance sheet. The changes in our aggregate performance guarantee obligations are as follows:



	As of September 30,
	2019			2018
	(in thousands)
Balance at beginning of period	$	6,044		$	4,173
Accruals for obligations issued	2,259			2,314
Settlements made in cash	(2,628		)	(1,047		)
Balance at end of period	$	5,675		$	5,440

Operating and Finance Leases. We lease real estate and certain office equipment under operating leases and certain other office equipment under finance leases. The following table presents the detail of lease expense:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in thousands)
Operating lease expense	$	344		$	243		$	914		$	729
Finance lease amortization of right-of-use assets	2			—			6			—
Short-term lease expense	11			14			34			31
Variable lease expense	268			180			731			527
Sublease income	(18		)	(12		)	(55		)	(51		)
Total	$	607		$	425		$	1,630		$	1,236

The following table presents the detail of right-of-use assets and lease liabilities as recorded in other assets and other current liabilities/other long-term liabilities, respectively, in the unaudited condensed consolidated balance sheets:



	As of September 30, 2019		As of December 31, 2018
	(in thousands)
Right-of-use assets:
Operating leases	$	9,869	$	2,586
Finance leases	6		—
Total right-of-use assets	$	9,875	$	2,586

Current lease liabilities:
Operating leases	$	524	$	871
Finance leases	7		—
Long-term leases liabilities
Operating leases	9,657		2,083
Total lease liabilities	$	10,188	$	2,954



	Nine Months Ended September 30,
	2019		2018
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	819	$	650
Financing cash flows from finance leases	7		—
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	8,053		—
Finance leases	13		—



	As of September 30,
	2019		2018
Weighted average remaining lease term (years):
Operating leases	9.68		3.64
Finance leases	0.92		—
Weighted average discount rate:
Operating leases	3.94	%	4.62	%
Finance leases	4.26	%	—	%



	Operating Leases			Finance Leases
	(in thousands)
Remaining 2019	$	368		$	2
2020	1,019			5
2021	1,521			—
2022	1,559			—
2023	1,594			—
2024 and thereafter	9,234			—
Total	15,295			7
Amount representing interest	(2,703		)	—
Amount representing leasehold incentives	(2,411		)	—
Present value of future payments	10,181			7
Current portion of lease liability	(524		)	(7		)
Long-term portion of lease liability	$	9,657		$	—



	Operating Leases
	(in thousands)
2019	$	989
2020	842
2021	863
2022	512
2023	—
2024 and thereafter	—
Total	3,206
Amount representing interest	(252		)
Present value of future payments	2,954
Current portion of lease liability	(871		)
Long-term portion of lease liability	$	2,083

Letters of Credit. In connection with various security arrangements for an office lease and merchant banking activities, we have letters of credit outstanding of $725,000 as of September 30, 2019 and December 31, 2018. The letters of credit are cash collateralized for the same amount or a lesser amount and this cash is classified as restricted cash.

Guarantees or Indemnifications. We enter into contracts that include indemnifications and guarantee provisions. In general, we enter into contracts with indemnities for matters such as breaches of representations and warranties and covenants contained in the contract and/or against certain specified liabilities. Examples of these contracts include dealer agreements, debt

agreements, asset purchases and sales agreements, service agreements and procurement agreements. We are unable to estimate our maximum potential exposure under these agreements until an event triggering payment occurs. We do not expect to make any material payments under these agreements.

Dealer Commitments. As of September 30, 2019, the net unamortized balance of payments to dealers for exclusivity and other similar arrangements was $32.4 million. Under these agreements, we paid $9.7 million and $31.7 million, during the three and nine months ended September 30, 2019, respectively, and could be obligated to pay a maximum of approximately $26.3 million in 2020, $24.2 million in 2021, $25.2 million in 2022 and $1.0 million in 2023, excluding additional amounts payable on a per watt basis if even higher thresholds are met.

Purchase Commitments. In August 2019, we amended an agreement with a supplier in which we agreed to purchase a minimum amount of energy storage systems for five years. These purchases are recorded to inventory within other current assets in the consolidated balance sheets. Under this agreement, we could be obligated to make minimum purchases of approximately $6.1 million during the remainder of 2019, $25.2 million in 2020, $27.4 million in 2021, $27.2 million in 2022, $27.1 million in 2023 and $20.2 million in 2024.

Information Technology Commitments. We have certain long-term contractual commitments related to information technology software services and licenses. Future commitments as of September 30, 2019 were as follows:



	Information Technology Commitments
	(in thousands)
Remaining 2019	$	2,650
2020	3,835
2021	3,269
2022	11
2023	—
2024 and thereafter	—
Total	$	9,765