Leases

12 Months Ended

Dec. 31, 2020

The Company enters into lease agreements that are primarily used for office space. These leases are accounted for as operating leases, with lease expense recognized on a straight-line basis over the term of the lease.

A portion of the Company's current leases include an option to extend or cancel the lease term. The exercise of such an option is solely at the Company's discretion. The operating lease liability recorded in the Consolidated Balance Sheets includes lease payments related to options to extend or cancel the lease term if the Company determined at the date of adoption that the lease was expected to be renewed or extended. The Company, in determining the present value of lease payments, utilized the average rate over a 10-year term based upon the Moody's seasoned Aaa corporate bond yields, as explicit rates of interest were not readily determinable in the lease contracts. The Company does not carry debt; thus no incremental borrowing rate was available to the Company.

Lease expense is included in office and technology expenses in the Consolidated Statements of Operations. Information regarding the Company’s operating leases for the years ended December 31 is as follows:


(in thousands)	2020		2019
Operating leases	$	1,293	$	1,273
Short-term leases (a)	159		139
Lease expense	$	1,452	$	1,412
Sub-lease income	—		—
Lease cost	$	1,452	$	1,412


(a)						Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets.

Components of the operating lease liability presented on the Consolidated Balance Sheets for the years ended December 31 are as follows:


(in thousands)	2020		2019
Current:
Operating lease liabilities	$	1,068	$	1,048
Non-current:
Operating lease liabilities	2,601		3,454
Total operating lease liabilities	$	3,669	$	4,502

The future minimum lease payments under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of December 31, 2020, are summarized as follows:


Year Ended (in thousands)
2021	$	1,208
2022	974
2023	686
2024	515
2025	327
Thereafter	322
Total undiscounted payments	$	4,032
Less: present value adjustment	(363)
Operating lease liabilities	$	3,669

Supplemental lease information for the years ended December 31 is as follows:


	2020		2019
Weighted average remaining lease term (years)	4.24		4.84
Weighted average discount rate	4.6	%	4.6	%

The Company does not have any material pending operating or financing lease agreements that become effective in future periods.