Leases (Tables)

3 Months Ended

Mar. 31, 2019

Leases

Schedule of operating and finance lease right-of-use assets and related lease obligations

		March 31,
Leases	Classification	2019
Assets		(in thousands)
Operating lease	Operating lease assets	$	7,453
Finance lease	Finance lease assets *		22,895
Total leased assets		$	30,348
Liabilities
Current
Operating	Other current liabilities	$	3,646
Finance	Other current liabilities		—
Noncurrent
Operating	Other long-term liabilities		3,805
Finance	Finance lease obligation		48,549
Total lease liabilities		$	56,000
* Finance lease assets are recorded net of accumulated depreciation of $46.7 million and include $0.8 million of prepaid financing costs as of March 31, 2019.

Schedule of lease costs

Lease cost	Classification	Three months ended
		March 31,
		2019
Operating lease cost		(in thousands)
Service	Cost of revenue	$	597
Research & development	Operating expenses		66
Selling*	Operating expenses		355
General & administrative*	Operating expenses		208
Total operating lease cost		$	1,226
Finance lease cost
Depreciation of leased assets	COGS, R&D, Selling and G&A	$	333
Interest on lease liabilities	Interest expense		1,230
Total finance lease cost		$	1,563
Total lease cost		$	2,789
* Selling, general and administrative expense includes short-term lease and variable lease costs of approximately $0.2 million.

Schedule of future minimum operating leases

	Finance		Operating		Total
Maturity of Lease Liabilities	Leases		Leases		Leases
	(in thousands)
2019	$	4,203	$	2,859	$	7,062
2020		5,720		3,107		8,827
2021		5,848		1,447		7,295
2022		5,980		372		6,352
2023		6,114		43		6,157
Thereafter		85,905		21		85,926
Total lease payments	$	113,770	$	7,849	$	121,619
Less interest portion*		(65,221)		(398)		(65,619)
Finance lease and operating lease obligations	$	48,549	$	7,451	$	56,000
* Finance lease interest calculated using the implied interest rate; operating lease interest calculated using estimated corporate borrowing rate

Schedule of future minimum finance leases

	Finance		Operating		Total
Maturity of Lease Liabilities	Leases		Leases		Leases
	(in thousands)
2019	$	4,203	$	2,859	$	7,062
2020		5,720		3,107		8,827
2021		5,848		1,447		7,295
2022		5,980		372		6,352
2023		6,114		43		6,157
Thereafter		85,905		21		85,926
Total lease payments	$	113,770	$	7,849	$	121,619
Less interest portion*		(65,221)		(398)		(65,619)
Finance lease and operating lease obligations	$	48,549	$	7,451	$	56,000
* Finance lease interest calculated using the implied interest rate; operating lease interest calculated using estimated corporate borrowing rate

Schedule of weighted-average remaining lease term and discount rates

	March 31,
Lease term and discount rate	2019
Weighted-average remaining lease term (years)
Operating leases		2.4
Finance leases		17.8
Weighted-average discount rate
Operating leases		4.5%
Finance leases		10.5%

Schedule of cash outflows by lease type

	Three months ended
	March 31,
	2019
Cash paid for amounts included in the measurement of lease liabilities	(in thousands)
Operating cash outflows from operating leases	$	1,226
Operating cash outflows from finance leases		1,391
Financing cash outflows from finance leases		—
Operating lease assets obtained in exchange for new operating lease liabilities		7,453
Finance lease assets obtained in exchange for new finance lease liabilities	$	—