Lease Obligations

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Lease Obligations

Lease Obligations

The Company leases offices, processing centers, warehouse spaces and, to a lesser extent, certain equipment. These leases have remaining terms of 1 year to 10 years, some of which have options to extend for up to 10 years and/or options to terminate within 1 year. The options to renew are not recognized as part of the Company’s right-of-use assets and operating lease liabilities as the Company is not reasonably certain that it will exercise these options. In January 2020, the Company amended its existing Houston, Texas headquarters lease agreement by extending the lease term to June 30, 2029 and surrendering back to the landlord floors for which the Company had previously vacated.

Total operating lease expense, including short-term lease expense was $2.5 million and $3.1 million for the three months ended March 31, 2020 and 2019, respectively.

Future maturities of lease obligations are as follows (in thousands):

For the year ending March 31,	Operating Leases			Finance Leases			Total
2021	$	11,260		$	1,254		$	12,514
2022	9,618			443			10,061
2023	9,538			—			9,538
2024	6,783			—			6,783
2025	8,878			—			8,878
Thereafter	19,906			—			19,906
Total lease payments	65,983			1,697			67,680
Less imputed interest	(15,579		)	(102		)	(15,681		)
Total	$	50,404		$	1,595		$	51,999

The weighted average remaining lease term as of March 31, 2020 and December 31, 2019 was 5.37 years and 4.71 years, respectively. The weighted average discount rate used to determine the operating lease liability at March 31, 2020 and December 31, 2019 was 6.51% and 6.47%, respectively.

	Three Months Ended March 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating leases	$	2,604	$	3,156
Equipment finance leases	275		281

Equipment Finance Leases

The Company has entered into equipment finance leases that are due in installments for the purpose of financing the purchase of computer equipment through August 2021. Interest accrues under these leases at a rate of 8.7% per annum, and the leases are collateralized by liens on the computer equipment. The assets are amortized over the lesser of their related lease terms or their estimated useful lives and such charges are reflected within depreciation expense.

Lease Obligations

Lease Obligations

The Company leases offices, processing centers, warehouse spaces and, to a lesser extent, certain equipment. These leases have remaining terms of 1 year to 10 years, some of which have options to extend for up to 10 years and/or options to terminate within 1 year. The options to renew are not recognized as part of the Company’s right-of-use assets and operating lease liabilities as the Company is not reasonably certain that it will exercise these options. In January 2020, the Company amended its existing Houston, Texas headquarters lease agreement by extending the lease term to June 30, 2029 and surrendering back to the landlord floors for which the Company had previously vacated.

Total operating lease expense, including short-term lease expense was $2.5 million and $3.1 million for the three months ended March 31, 2020 and 2019, respectively.

Future maturities of lease obligations are as follows (in thousands):

For the year ending March 31,	Operating Leases			Finance Leases			Total
2021	$	11,260		$	1,254		$	12,514
2022	9,618			443			10,061
2023	9,538			—			9,538
2024	6,783			—			6,783
2025	8,878			—			8,878
Thereafter	19,906			—			19,906
Total lease payments	65,983			1,697			67,680
Less imputed interest	(15,579		)	(102		)	(15,681		)
Total	$	50,404		$	1,595		$	51,999

The weighted average remaining lease term as of March 31, 2020 and December 31, 2019 was 5.37 years and 4.71 years, respectively. The weighted average discount rate used to determine the operating lease liability at March 31, 2020 and December 31, 2019 was 6.51% and 6.47%, respectively.

	Three Months Ended March 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating leases	$	2,604	$	3,156
Equipment finance leases	275		281

Equipment Finance Leases

The Company has entered into equipment finance leases that are due in installments for the purpose of financing the purchase of computer equipment through August 2021. Interest accrues under these leases at a rate of 8.7% per annum, and the leases are collateralized by liens on the computer equipment. The assets are amortized over the lesser of their related lease terms or their estimated useful lives and such charges are reflected within depreciation expense.