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Lease Obligations
 9 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Lease Obligations Lease ObligationsFrom time-to-time, the Company enters into non-cancelable leases for some of our facility, vehicle and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from one to six years, some of which may include options to extend the leases for up to five years, and some of which may include options to terminate the leases within one year. Currently, all the Company’s leases contain fixed payment terms. The Company may decide to cancel or terminate a lease before the end of its term, in which case we are typically liable to the lessor for the remaining lease payments under the term of the lease. Additionally, all of the Company's month-to-month leases are cancelable, by the Company or the lessor, at any time and are not included in our right-of-use asset or liability. At September 30, 2020, the Company had several leases with residual value guarantees, due to the acquisition of CSI. Typically, the Company has purchase options on the equipment underlying its long-term leases and many of its short-term rental arrangements. The Company may exercise some of these purchase options when the need for equipment is on-going and the purchase option price is attractive. Leases are accounted for as operating or finance leases, depending on the terms of the lease.
The following is a summary of the lease-related assets and liabilities recorded:
​September 30,
2020		December 31,
2019
(in thousands)Classification on the Consolidated Balance Sheet
Assets
Operating lease right-of-use assetsOperating lease right-of-use assets$22,620 $22,958 
Finance lease right-of-use assetsProperty and equipment, net of accumulated depreciation664 1,478 
Total right-of-use lease assets$23,284 $24,436 
​
Liabilities
Current
Operating lease obligationsCurrent portion of operating lease obligations$6,468 $6,205 
Finance lease obligationsCurrent portion of finance lease obligations607 1,135 
Total current obligations7,075 7,340 
Non-current
Operating lease obligationsOperating lease obligations, net of current maturities16,230 16,884 
Finance lease obligationsFinance lease obligations, net of current maturities— 338 
Total non-current obligations16,230 17,222 
Total lease obligations$23,305 $24,562 
The following is a summary of the lease terms and discount rates:
​September 30,
2020		December 31,
2019
Weighted-average remaining lease term - finance leases0.6 years1.4 years
Weighted-average remaining lease term - operating leases3.5 years3.9 years
Weighted-average discount rate - finance leases2.5 %2.5 %
Weighted-average discount rate - operating leases3.9 %3.8 %
The following is a summary of certain information related to the lease costs for finance and operating leases:
(in thousands)Three months ended
September 30,		Nine months ended
September 30,
​2020201920202019
Lease cost:​​
Finance lease cost:​​
Amortization of right-of-use assets$240 $273 $737 $820 
Interest on lease liabilities7 16 27 53 
Operating lease cost2,327 2,055 6,875 5,016 
Short-term lease cost— — — 8 
Variable lease costs106 67 259 198 
Total lease cost$2,680 $2,411 $7,898 $6,095 
The following is a summary of other information and supplemental cash flow information related to finance and operating leases:
​Nine months ended September 30,
(in thousands)20202019
Other information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$6,676 $5,064 
Right-of-use asset obtained in exchange for new operating lease obligations$5,592 $11,374 
The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets, under financial leases, less interest, and under operating leases, less imputed interest, as of September 30, 2020 were as follows:
(in thousands)Finance
Lease Obligations		Operating Lease
Obligations		Total
Lease
Obligations
​​​​
Remainder of 2020
$289 $2,394 $2,683 
2021326 8,449 8,775 
2022— 6,988 6,988 
2023— 5,048 5,048 
2024— 2,491 2,491 
2025— 976 976 
Thereafter— 795 795 
Total minimum lease payments615 27,141 27,756 
Financing component(8)(4,443)(4,451)
Net present value of minimum lease payments607 22,698 23,305 
Less: current portion of finance and operating lease obligations(607)(6,468)(7,075)
Long-term finance and operating lease obligations$— $16,230 $16,230 
The financing component for finance lease obligations represents the interest component of finance leases that will be recognized as interest expense in future periods. The financing component for operating lease obligations represents the effect of discounting the lease payments to their present value.
Certain subsidiaries of the Company have operating leases for facilities from third party companies that are owned, in whole or part, by employees of the subsidiaries. The terms and rental rates of these leases are at market rental rates. As of September 30, 2020, the minimum lease payments required under these leases totaled $3.6 million, which are due over the next 3.8 years.
Lease Obligations Lease ObligationsFrom time-to-time, the Company enters into non-cancelable leases for some of our facility, vehicle and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from one to six years, some of which may include options to extend the leases for up to five years, and some of which may include options to terminate the leases within one year. Currently, all the Company’s leases contain fixed payment terms. The Company may decide to cancel or terminate a lease before the end of its term, in which case we are typically liable to the lessor for the remaining lease payments under the term of the lease. Additionally, all of the Company's month-to-month leases are cancelable, by the Company or the lessor, at any time and are not included in our right-of-use asset or liability. At September 30, 2020, the Company had several leases with residual value guarantees, due to the acquisition of CSI. Typically, the Company has purchase options on the equipment underlying its long-term leases and many of its short-term rental arrangements. The Company may exercise some of these purchase options when the need for equipment is on-going and the purchase option price is attractive. Leases are accounted for as operating or finance leases, depending on the terms of the lease.
The following is a summary of the lease-related assets and liabilities recorded:
​September 30,
2020		December 31,
2019
(in thousands)Classification on the Consolidated Balance Sheet
Assets
Operating lease right-of-use assetsOperating lease right-of-use assets$22,620 $22,958 
Finance lease right-of-use assetsProperty and equipment, net of accumulated depreciation664 1,478 
Total right-of-use lease assets$23,284 $24,436 
​
Liabilities
Current
Operating lease obligationsCurrent portion of operating lease obligations$6,468 $6,205 
Finance lease obligationsCurrent portion of finance lease obligations607 1,135 
Total current obligations7,075 7,340 
Non-current
Operating lease obligationsOperating lease obligations, net of current maturities16,230 16,884 
Finance lease obligationsFinance lease obligations, net of current maturities— 338 
Total non-current obligations16,230 17,222 
Total lease obligations$23,305 $24,562 
The following is a summary of the lease terms and discount rates:
​September 30,
2020		December 31,
2019
Weighted-average remaining lease term - finance leases0.6 years1.4 years
Weighted-average remaining lease term - operating leases3.5 years3.9 years
Weighted-average discount rate - finance leases2.5 %2.5 %
Weighted-average discount rate - operating leases3.9 %3.8 %
The following is a summary of certain information related to the lease costs for finance and operating leases:
(in thousands)Three months ended
September 30,		Nine months ended
September 30,
​2020201920202019
Lease cost:​​
Finance lease cost:​​
Amortization of right-of-use assets$240 $273 $737 $820 
Interest on lease liabilities7 16 27 53 
Operating lease cost2,327 2,055 6,875 5,016 
Short-term lease cost— — — 8 
Variable lease costs106 67 259 198 
Total lease cost$2,680 $2,411 $7,898 $6,095 
The following is a summary of other information and supplemental cash flow information related to finance and operating leases:
​Nine months ended September 30,
(in thousands)20202019
Other information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$6,676 $5,064 
Right-of-use asset obtained in exchange for new operating lease obligations$5,592 $11,374 
The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets, under financial leases, less interest, and under operating leases, less imputed interest, as of September 30, 2020 were as follows:
(in thousands)Finance
Lease Obligations		Operating Lease
Obligations		Total
Lease
Obligations
​​​​
Remainder of 2020
$289 $2,394 $2,683 
2021326 8,449 8,775 
2022— 6,988 6,988 
2023— 5,048 5,048 
2024— 2,491 2,491 
2025— 976 976 
Thereafter— 795 795 
Total minimum lease payments615 27,141 27,756 
Financing component(8)(4,443)(4,451)
Net present value of minimum lease payments607 22,698 23,305 
Less: current portion of finance and operating lease obligations(607)(6,468)(7,075)
Long-term finance and operating lease obligations$— $16,230 $16,230 
The financing component for finance lease obligations represents the interest component of finance leases that will be recognized as interest expense in future periods. The financing component for operating lease obligations represents the effect of discounting the lease payments to their present value.
Certain subsidiaries of the Company have operating leases for facilities from third party companies that are owned, in whole or part, by employees of the subsidiaries. The terms and rental rates of these leases are at market rental rates. As of September 30, 2020, the minimum lease payments required under these leases totaled $3.6 million, which are due over the next 3.8 years.