Leases

12 Months Ended

Dec. 31, 2020

7. Leases

In connection with the sale of a portion of our corporate campus as further discussed in Note 8, we leased the property pursuant to a master lease for a term extending through September 30, 2030, with two five-year extensions. We record the right to use the underlying asset for the operating lease term as an asset and our obligation to make lease payments as a liability, based on the present value of the lease payments over the lease term. On commencement of the lease, we recorded a right-of-use asset and operating lease liability of $8,841,000.

Because the rate implicit in the lease is not readily determinable, we use our incremental borrowing rate to determine the present value of lease payments. Information related to our right-of-use asset and related lease liability were as follows:

		December 31,		December 31,
(in thousands)	Balance Sheet Classification	2020		2019
Right-of-use asset	Right-of-use lease asset, net	$	8,622	$	—

Operating lease liability (current)	Accounts payable, accrued and other liabilities	$	691	$	—
Operating lease liability (non-current)	Long-term debt and other liabilities, net		7,952		—
		$	8,643	$	—

	For the Year Ended December 31,
(in thousands	2020		2019
Cash paid for operating lease liabilities	$	321	$	—
Right-of-use asset obtained in exchange for operating lease obligation		8,841		—

Operating lease expense is recognized on a straight-line basis over the lease term. We recognized $327,000 in total lease costs during 2020. Future amortization of our lease liability as of December 31, 2020 was as follows:

(in thousands)
2021	$	1,001
2022		1,001
2023		1,001
2024		1,008
2025		1,035
Thereafter		5,397
Future lease payments, gross		10,443
Less: Imputed interest		(1,800	)
Operating lease liability	$	8,643