Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases

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

		September 30,
Leases	Classification	2019
Assets		(in thousands)
Operating lease	Operating lease assets	$	6,175
Finance lease	Finance lease assets *		22,231
Total leased assets		$	28,406
Liabilities
Current
Operating	Other current liabilities	$	3,219
Finance	Current portion of finance lease obligation		252
Noncurrent
Operating	Other long-term liabilities		2,899
Finance	Finance lease obligation		48,297
Total lease liabilities		$	54,667
* Finance lease assets are recorded net of accumulated depreciation of $47.3 million and include $0.8 million of prepaid financing costs as of September 30, 2019.

Schedule of lease costs

		Three months ended			Nine months ended
		September 30,			September 30,
Lease cost	Classification	2019		2019
Operating lease cost		(in thousands)
Service	Cost of revenue	$	552	$	1,732
Research and development	Operating expenses		80		232
Sales and marketing*	Operating expenses		338		1,037
General and administrative*	Operating expenses		207		608
Total operating lease cost		$	1,177	$	3,609
Finance lease cost
Depreciation of leased assets	Cost of revenue, R&D, Sales and marketing and G&A	$	332	$	997
Interest on lease liabilities	Interest expense		1,308		3,849
Total finance lease cost		$	1,640	$	4,846
Total lease cost		$	2,817	$	8,455
* Sales and marketing, general and administrative expense includes short-term lease and variable lease costs of approximately $0.2 million and $0.6 million for the three and nine months ended September 30, 2019, respectively.

Schedule of future minimum operating leases

	Finance		Operating		Total
Maturity of Lease Liabilities	Leases		Leases		Leases
	(in thousands)
2019	$	1,401	$	923	$	2,324
2020		5,720		3,283		9,003
2021		5,848		1,650		7,498
2022		5,980		508		6,488
2023		6,114		113		6,227
Thereafter		85,905		266		86,171
Total lease payments	$	110,968	$	6,743	$	117,711
Less interest portion*		(62,419)		(625)		(63,044)
Finance lease and operating lease obligations	$	48,549	$	6,118	$	54,667
* 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	$	1,401	$	923	$	2,324
2020		5,720		3,283		9,003
2021		5,848		1,650		7,498
2022		5,980		508		6,488
2023		6,114		113		6,227
Thereafter		85,905		266		86,171
Total lease payments	$	110,968	$	6,743	$	117,711
Less interest portion*		(62,419)		(625)		(63,044)
Finance lease and operating lease obligations	$	48,549	$	6,118	$	54,667
* 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

	September 30,
Lease term and discount rate	2019
Weighted-average remaining lease term (years):
Operating leases		2.3
Finance leases		17.6
Weighted-average discount rate:
Operating leases		4.5%
Finance leases		10.5%

Schedule of cash outflows by lease type

	Nine months ended
	September 30,
Cash paid for amounts included in the measurement of lease liabilities	2019
	(in thousands)
Operating cash outflows from operating leases	$	3,609
Operating cash outflows from finance leases		4,193
Financing cash outflows from finance leases		—
Operating lease assets obtained in exchange for new operating lease liabilities		6,175
Finance lease assets obtained in exchange for new finance lease liabilities	$	—