20. Leases

We adopted ASU 2016-02, “Leases, (Topic 842)” on January 1, 2019, which resulted in the recognition of operating leases on the balance sheet in 2019 and going forward. See Note 2 for more information on the adoption of ASU 2016-02. Right-of-use assets are included in the other assets line item and lease liabilities are included in the other liabilities line item of the consolidated balance sheet. We also elected certain practical expedients that allow us not to reassess existing leases under the new guidance. We determine if a contract contains a lease at inception and recognize operating lease right-of-use assets and operating lease liabilities based on the present value of the future minimum lease payments at the commencement date. Since our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Lease agreements have lease and non-lease components, which are accounted for as a single lease component. Lease expense is recognized on a straight-line basis over the lease term.

The Company’s operating lease obligations predominately pertain to office leases utilized in the operation of our business. Our leases have remaining terms of 1 to 13 years, some of which include options to extend the leases. The components of lease expense and other lease information as of and during the three and nine month periods ended September 30, 2019 are as follows (in thousands):


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2019		2019

Operating lease cost	$	790	$	2,146

Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	392	$	1,495

Right-of-use assets obtained in exchange for new operating lease liabilities	$	—	$	—

We incurred $8 thousand and $24 thousand in short-term lease payments not included in our lease liability during the three and nine months ended September 30, 2019.

The components of lease expense and other lease information as of and during the nine month period ended September 30, 2019 are as follows (in thousands):


	September 30,
	2019

Operating lease right-of-use assets	$	16,578

Operating lease liabilities	$	17,485

Weighted-average remaining lease term - operating leases		10.7

Weighted-average discount rate - operating leases		5.88%

Future minimum lease payments under non-cancellable leases as of September 30, 2019 and December 31, 2018 are as follows (in thousands):


	September 30,			December 31,
	2019			2018

2019	$	394	$	1,889
2020		2,473		2,473
2021		2,172		2,172
2022		2,171		2,171
2023		1,885		1,885
Thereafter		15,266		15,266
Total future minimum lease payments	$	24,361	$	25,856

Less imputed interest	$	(6,876)	$	N/A
Total operating lease liability	$	17,485	$	N/A