Leases

9 Months Ended

Sep. 30, 2019

Note 3. Leases

We evaluate contracts for leasing arrangements at inception. We lease office space, equipment, and vehicles that have non-cancelable lease terms. Leases with a term of 12 months or less are not recorded on our balance sheet. During the third quarter of 2019, we exercised the early buyout option on our remaining finance leases. The table below reflects our operating lease assets and liabilities, which primarily consists of our office leases, and finance lease assets and liabilities:



	September 30,
In thousands	2019
Operating leases
Operating lease right-of-use assets	$	35,145

Operating lease liabilities - current	$	6,710
Operating lease liabilities - long-term	43,704
Total operating lease liabilities	$	50,414

Finance leases
Other property and equipment	$	—
Accumulated depreciation	—
Other property and equipment, net	$	—

Current maturities of long-term debt	$	—
Long-term debt, net of current portion	—
Total finance lease liabilities	$	—

The majority of our leases contain renewal options, typically exercisable at our sole discretion. We record right-of-use assets and liabilities based on the present value of lease payments over the initial lease term, unless the option to extend the lease is reasonably certain, and utilize our incremental borrowing rate based on information available at the lease commencement date. The following weighted average remaining lease terms and discount rates related to our outstanding leases:



	September 30,
	2019
Weighted Average Remaining Lease Term
Operating leases	6.0 years
Finance leases	0 years

Weighted Average Discount Rate
Operating leases	6.8	%
Finance leases	—	%

Lease costs for operating leases or leases with a term of 12 months or less are recognized on a straight-line basis over the lease term. For finance leases, interest on the lease liability and the amortization of the right-of-use asset are recognized separately, with the depreciable life reflective of the expected lease term. We have subleased part of the office space included in our operating leases for which we receive rental payments. The following table summarizes the components of lease costs and sublease income:



		Three Months Ended		Nine Months Ended
In thousands	Income Statement Presentation	September 30, 2019		September 30, 2019
Operating lease cost	General and administrative expenses	$	1,187	$	6,014

Finance lease cost
Amortization of right-of-use assets	Depletion, depreciation, and amortization	$	54	$	1,188
Interest on lease liabilities	Interest expense	2		40
Total finance lease cost		$	56	$	1,228

Sublease income	General and administrative expenses	$	964	$	3,331

Our statement of cash flows included the following activity related to our operating and finance leases:



	Nine Months Ended
In thousands	September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	7,335
Operating cash flows from interest on finance leases	40
Financing cash flows from finance leases	1,275

Right-of-use assets obtained in exchange for lease obligations
Operating leases	307
Finance leases	—

The following table summarizes by year the maturities of our minimum lease payments as of September 30, 2019:



	Operating			Finance
In thousands	Leases			Leases
2019	$	2,479		$	—
2020	9,874			—
2021	10,042			—
2022	10,260			—
2023	10,300			—
Thereafter	18,604			—
Total minimum lease payments	61,559			—
Less: Amount representing interest	(11,145		)	—
Present value of minimum lease payments	$	50,414		$	—

The following table summarizes by year the remaining non-cancelable future payments under our leases, as accounted for under previous accounting guidance under FASC Topic 840, Leases, as of December 31, 2018:



	Operating
In thousands	Leases
2019	$	10,690
2020	9,776
2021	10,007
2022	10,223
2023	10,262
Thereafter	18,169
Total minimum lease payments	$	69,127