Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases

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

		June 30,
Leases	Classification	2019
Assets		(in thousands)
Operating lease	Operating lease assets	$	6,431
Finance lease	Finance lease assets *		22,563
Total leased assets		$	28,994
Liabilities
Current
Operating	Other current liabilities	$	3,389
Finance	Other current liabilities		108
Noncurrent
Operating	Other long-term liabilities		3,020
Finance	Finance lease obligation		48,441
Total lease liabilities		$	54,958
* Finance lease assets are recorded net of accumulated depreciation of $47.0 million and include $0.8 million of prepaid financing costs as of June 30, 2019.

Schedule of lease costs

		Three months ended			Six months ended
		June 30,			June 30,
Lease cost	Classification	2019		2019
Operating lease cost		(in thousands)
Service	Cost of revenue	$	583	$	1,180
Research and development	Operating expenses		86		152
Sales and marketing*	Operating expenses		345		699
General and administrative*	Operating expenses		193		402
Total operating lease cost		$	1,207	$	2,433
Finance lease cost
Depreciation of leased assets	Cost of revenue, R&D, Sales and marketing and G&A	$	332	$	665
Interest on lease liabilities	Interest expense		1,311		2,541
Total finance lease cost		$	1,643	$	3,206
Total lease cost		$	2,850	$	5,639
* Sales and marketing, general and administrative expense includes short-term lease and variable lease costs of approximately $0.2 million and $0.4 million for the three and six months ended June 30, 2019, respectively.

Schedule of future minimum operating leases

	Finance		Operating		Total
Maturity of Lease Liabilities	Leases		Leases		Leases
	(in thousands)
2019	$	2,802	$	1,894	$	4,696
2020		5,720		3,155		8,875
2021		5,848		1,453		7,301
2022		5,980		374		6,354
2023		6,114		44		6,158
Thereafter		85,905		21		85,926
Total lease payments	$	112,369	$	6,941	$	119,310
Less interest portion*		(63,820)		(532)		(64,352)
Finance lease and operating lease obligations	$	48,549	$	6,409	$	54,958
* 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	$	2,802	$	1,894	$	4,696
2020		5,720		3,155		8,875
2021		5,848		1,453		7,301
2022		5,980		374		6,354
2023		6,114		44		6,158
Thereafter		85,905		21		85,926
Total lease payments	$	112,369	$	6,941	$	119,310
Less interest portion*		(63,820)		(532)		(64,352)
Finance lease and operating lease obligations	$	48,549	$	6,409	$	54,958
* 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

	June 30,
Lease term and discount rate	2019
Weighted-average remaining lease term (years):
Operating leases		2.2
Finance leases		17.6
Weighted-average discount rate:
Operating leases		4.5%
Finance leases		10.5%

Schedule of cash outflows by lease type

	Six months ended
	June 30,
Cash paid for amounts included in the measurement of lease liabilities	2019
	(in thousands)
Operating cash outflows from operating leases	$	2,433
Operating cash outflows from finance leases		2,792
Financing cash outflows from finance leases		—
Operating lease assets obtained in exchange for new operating lease liabilities		6,431
Finance lease assets obtained in exchange for new finance lease liabilities	$	—