Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

Leases

The Company adopted ASU 2016-02, as of January 1, 2019, using the modified retrospective approach. Prior year financial statements were not recast under the new standard and, therefore, those amounts are not presented below.

All of our office and warehouse facilities are leased under operating leases. We also lease vehicles primarily as operating leases. Most of our equipment leases are leased under finance leases. Lease costs are included within cost of service fee revenue, selling, general and administrative expenses and interest expense, net in our consolidated statements of operations and comprehensive income (loss).

Total lease costs consist of the following (in thousands):

	December 31, 2019
Lease costs:
Finance lease costs:
Amortization of right-of-use assets	$	1,387
Interest on lease liabilities	160
Operating lease costs	9,326
Variable lease costs	2,949
Short-term lease costs	1,656
Total lease costs	$	15,478

We had $1.9 million of finance lease assets that are reported in property and equipment, net as of December 31, 2019. As of December 31, 2019, our weighted-average remaining lease term relating to our operating leases is 5.6 years, with a weighted-average discount of 5.1%. As of December 31, 2019, our weighted-average remaining lease term relating to our finance leases is 2.1 years, with a weighted-average discount of 5.6%. Our leases have remaining lease terms of up to 9.1 years, some of which include options to extend the leases for up to 10 years and some of which include options to terminate the leases within 1 year.

Maturities of lease liabilities are as follows (in thousands):

	December 31, 2019
	Operating Leases			Finance Leases
2020	$	10,456		$	1,253
2021	9,567			836
2022	8,698			143
2023	6,691			52
2024	4,659			21
Thereafter	8,491			—
Total lease payments	48,562			2,305
Less interest	(6,363		)	(128		)
Total lease obligations	$	42,199		$	2,177

Supplemental consolidated cash flow information related to leases is as follows (in thousands):

	December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows arising from operating leases	$	9,365
Operating cash flows arising from finance leases	$	160
Financing cash flows arising from finance leases	$	1,644
Right-of-use assets obtained in exchange for operating lease liabilities	$	2,910
Right-of-use assets obtained in exchange for finance lease liabilities	$	414

Total rental expense under operating leases approximated $11.1 million for the year ended December 31, 2018. Future minimum obligations under leases in effect as of December 31, 2018 having a non-cancelable term in excess of one year as determined prior to the adoption of ASU 2016-02 were as follows (in thousands):

	December 31, 2018
	Operating Leases		Finance Leases
2019	$	9,659	$	1,811
2020	10,028		1,169
2021	9,222		725
2022	8,407		55
2023	6,828		—
Thereafter	12,840		—
Future minimum lease obligations	$	56,984	3,760
Less interest			(265		)
Present value of net minimum lease obligations			$	3,495

Leases

Leases

The Company adopted ASU 2016-02, as of January 1, 2019, using the modified retrospective approach. Prior year financial statements were not recast under the new standard and, therefore, those amounts are not presented below.

All of our office and warehouse facilities are leased under operating leases. We also lease vehicles primarily as operating leases. Most of our equipment leases are leased under finance leases. Lease costs are included within cost of service fee revenue, selling, general and administrative expenses and interest expense, net in our consolidated statements of operations and comprehensive income (loss).

Total lease costs consist of the following (in thousands):

	December 31, 2019
Lease costs:
Finance lease costs:
Amortization of right-of-use assets	$	1,387
Interest on lease liabilities	160
Operating lease costs	9,326
Variable lease costs	2,949
Short-term lease costs	1,656
Total lease costs	$	15,478

We had $1.9 million of finance lease assets that are reported in property and equipment, net as of December 31, 2019. As of December 31, 2019, our weighted-average remaining lease term relating to our operating leases is 5.6 years, with a weighted-average discount of 5.1%. As of December 31, 2019, our weighted-average remaining lease term relating to our finance leases is 2.1 years, with a weighted-average discount of 5.6%. Our leases have remaining lease terms of up to 9.1 years, some of which include options to extend the leases for up to 10 years and some of which include options to terminate the leases within 1 year.

Maturities of lease liabilities are as follows (in thousands):

	December 31, 2019
	Operating Leases			Finance Leases
2020	$	10,456		$	1,253
2021	9,567			836
2022	8,698			143
2023	6,691			52
2024	4,659			21
Thereafter	8,491			—
Total lease payments	48,562			2,305
Less interest	(6,363		)	(128		)
Total lease obligations	$	42,199		$	2,177

Supplemental consolidated cash flow information related to leases is as follows (in thousands):

	December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows arising from operating leases	$	9,365
Operating cash flows arising from finance leases	$	160
Financing cash flows arising from finance leases	$	1,644
Right-of-use assets obtained in exchange for operating lease liabilities	$	2,910
Right-of-use assets obtained in exchange for finance lease liabilities	$	414

Total rental expense under operating leases approximated $11.1 million for the year ended December 31, 2018. Future minimum obligations under leases in effect as of December 31, 2018 having a non-cancelable term in excess of one year as determined prior to the adoption of ASU 2016-02 were as follows (in thousands):

	December 31, 2018
	Operating Leases		Finance Leases
2019	$	9,659	$	1,811
2020	10,028		1,169
2021	9,222		725
2022	8,407		55
2023	6,828		—
Thereafter	12,840		—
Future minimum lease obligations	$	56,984	3,760
Less interest			(265		)
Present value of net minimum lease obligations			$	3,495