Leases (Notes)

6 Months Ended

Jun. 30, 2019

Leases

The Company leases office space, domestically and internationally, under operating leases. The Company's leases have remaining lease terms between one year and four years. Operating leases are included in operating lease right-of-use ("ROU") assets, operating lease liabilities, and long-term operating lease liabilities in the Company's unaudited condensed consolidated balance sheets. The Company does not have any finance leases. The Company determines if an arrangement is a lease, or contains a lease, at inception. The Company assesses all relevant facts and circumstances in making the determination of the existence of a lease. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of lease payments over the term. Many of the Company's leases include rental escalation clauses, renewal options and/or termination options that are factored into the determination of lease payments when appropriate. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and the Company does not separate non-lease components from lease components. Refer to Note 18, "Subsequent Events" for discussion related to the new lease signed in July 2019 which will serve as the Company’s new corporate headquarters.

The Company used its incremental borrowing rate to measure the lease liabilities at the adoption date for its existing operating leases that commenced prior to January 1, 2019 which was based on the remaining lease term and remaining lease payments for such leases. On an ongoing basis, as most of the Company's leases do not provide an implicit rate, the Company will use its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company will use the implicit rate when readily determinable.

The table below reconciles the undiscounted cash flows for the first five years and total of the remaining years to the operating lease liabilities recorded on the unaudited condensed consolidated balance sheet as of June 30, 2019 (in thousands):



Years ending December 31,	Amount
2019 (remaining 6 months)	$	4,962
2020	6,125
2021	4,242
2022	3,117
2023	645
Thereafter	—
Total minimum lease payments	19,091
Less: amount of lease payments representing interest	(1,162		)
Present value of future minimum lease payments	17,929
Less: current obligations under leases	(8,381		)
Long-term lease obligations	$	9,548

As of June 30, 2019, the weighted-average remaining lease term for the Company's operating leases was 2.8 years, and the weighted-average discount rate used to determine the present value of the Company's operating leases was 4.5%.

Operating lease costs are included in research and development and selling, general and administrative costs on the statement of operations, and were $2.2 million and $4.5 million for the three and six months ended June 30, 2019, respectively.

Cash paid for amounts included in the measurement of operating lease liabilities was $5.1 million for the six months ended June 30, 2019.