Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

Note 7: Leases

Our leases are primarily related to office space and are classified as operating leases. Operating lease expense is recognized in “General and administrative” expense on the condensed consolidated statements of comprehensive income (loss) as follows (in thousands):

	Three Months Ended March 31,
	2020		2019
Fixed lease expense	$	2,036	$	1,026
Variable lease expense	301		348
Total lease expense	$	2,337	$	1,374

In addition, we recognized sublease income of $0.3 million for both the three months ended March 31, 2020 and 2019.

As of March 31, 2020, our weighted-average remaining operating lease term was approximately 11.1 years, and our weighted-average operating lease discount rate was 5.5%.

Operating leases were recorded on the condensed consolidated balance sheets as follows (in thousands):

	March 31, 2020		December 31, 2019
Lease liabilities—current	2,187		3,223
Lease liabilities—long-term	31,509		5,865
Total operating lease liabilities	$	33,696	$	9,088

The maturities of the Company's operating lease liabilities as of March 31, 2020 were as follows (in thousands):

(in thousands)
Undiscounted cash flows:
Remainder of 2020 (1)	$	(2,344)
2021	2,270
2022	4,706
2023	4,808
2024	4,911
Thereafter	$	35,337
Total undiscounted cash flows	$	49,688
Imputed interest	(15,992)
Present value of cash flows	$	33,696

____________________________

(1)Undiscounted cash flows for the remainder of 2020 used to calculate the lease liability are reduced by the tenant improvement allowance related to the new corporate headquarters lease. See below for more information.

Cash paid on operating lease liabilities was $1.2 million and $0.9 million for the three months ended March 31, 2020 and 2019, respectively. Lease liabilities from new right-of-use assets obtained in the three months ended March 31, 2020 and 2019 were $20.4 million and $9.4 million, respectively.

In 2019, we signed a new corporate headquarters lease, which commenced in January 2020 and, therefore, a right-of-use asset of $20.7 million and a lease liability of $20.4 million was reflected on the condensed consolidated financial statements beginning in January 2020. The new headquarters lease is classified as an operating lease, and the term of the lease extends to June 2033. Lease payments will begin in August 2021 and will result in $45.2 million in undiscounted fixed lease payments, which are partially offset by a $9.7 million tenant improvement allowance. Under the new lease, we will also make variable payments for operating expenses and utilities.

Leases

Note 7: Leases

Our leases are primarily related to office space and are classified as operating leases. Operating lease expense is recognized in “General and administrative” expense on the condensed consolidated statements of comprehensive income (loss) as follows (in thousands):

	Three Months Ended March 31,
	2020		2019
Fixed lease expense	$	2,036	$	1,026
Variable lease expense	301		348
Total lease expense	$	2,337	$	1,374

In addition, we recognized sublease income of $0.3 million for both the three months ended March 31, 2020 and 2019.

As of March 31, 2020, our weighted-average remaining operating lease term was approximately 11.1 years, and our weighted-average operating lease discount rate was 5.5%.

Operating leases were recorded on the condensed consolidated balance sheets as follows (in thousands):

	March 31, 2020		December 31, 2019
Lease liabilities—current	2,187		3,223
Lease liabilities—long-term	31,509		5,865
Total operating lease liabilities	$	33,696	$	9,088

The maturities of the Company's operating lease liabilities as of March 31, 2020 were as follows (in thousands):

(in thousands)
Undiscounted cash flows:
Remainder of 2020 (1)	$	(2,344)
2021	2,270
2022	4,706
2023	4,808
2024	4,911
Thereafter	$	35,337
Total undiscounted cash flows	$	49,688
Imputed interest	(15,992)
Present value of cash flows	$	33,696

____________________________

(1)Undiscounted cash flows for the remainder of 2020 used to calculate the lease liability are reduced by the tenant improvement allowance related to the new corporate headquarters lease. See below for more information.

Cash paid on operating lease liabilities was $1.2 million and $0.9 million for the three months ended March 31, 2020 and 2019, respectively. Lease liabilities from new right-of-use assets obtained in the three months ended March 31, 2020 and 2019 were $20.4 million and $9.4 million, respectively.

In 2019, we signed a new corporate headquarters lease, which commenced in January 2020 and, therefore, a right-of-use asset of $20.7 million and a lease liability of $20.4 million was reflected on the condensed consolidated financial statements beginning in January 2020. The new headquarters lease is classified as an operating lease, and the term of the lease extends to June 2033. Lease payments will begin in August 2021 and will result in $45.2 million in undiscounted fixed lease payments, which are partially offset by a $9.7 million tenant improvement allowance. Under the new lease, we will also make variable payments for operating expenses and utilities.