Leases Leases

9 Months Ended

Sep. 30, 2019

4. Leases

Substantially all of our operating leases recorded in our condensed consolidated balance sheet at January 1, 2019 upon adoption of ASC 842 are related to office facility leases. The lease and non-lease components are accounted for as a combined single component based upon the standalone price at the time the applicable lease is commenced and is recognized as a lease expense on a straight-line basis over the lease term. Most of our office facility leases include options to renew and generally are not included in the operating lease liabilities or right-of-use ("ROU") assets as they are not reasonably certain of being exercised. If an option to renew is exercised, it would be considered a separate contract and recognized based upon the standalone price at the time the option to renew is exercised. Variable lease payments which values are not known at lease commencement, such as executory costs of real estate taxes, property insurance, and common area maintenance, are expensed as incurred.

As of September 30, 2019, we had no significant leases executed but not yet commenced and did not record any impairment charges related to our ROU assets. See Note 13, "Commitments and Contingencies," for maturities of lease liabilities. The following is a summary of our operating lease related information:



($ in millions)		As of
Balance sheet	Classification	September 30, 2019
Right-of-use assets, net	Other assets, net	$	11.1
Operating lease liabilities	Other liabilities	$	15.7



($ in millions)
Statement of income and comprehensive income	Classification	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Rent expense related to operating lease liabilities	General and administrative expenses and property management expenses	$	0.7	$	2.2
Variable lease expense	General and administrative expenses and property management expenses	$	0.3	$	1.0
Statement of cash flows
Cash flows from operating leases	Net cash from operating activities	$	0.7	$	2.3
Supplemental lease information
Weighted average remaining lease term (years)				5.6
Weighted average discount rate - operating leases (1)				4.9		%

(1)

We use a secured incremental borrowing rate, as defined by ASC 842 based on an estimated secured rate with applicable adjustments, as most of our lease contracts do not provide a readily determinable implicit rate.