Leases (Tables)

3 Months Ended

Mar. 31, 2020

Leases

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

		March 31,		December 31,
Leases	Classification	2020		2019
Assets		(in thousands)
Operating lease	Operating lease assets	$	5,583	$	5,849
Finance lease	Finance lease assets *		21,528		21,880
Total leased assets		$	27,111	$	27,729
Liabilities
Current
Operating	Other current liabilities	$	3,233	$	3,144
Finance	Current portion of finance lease obligation		573		399
Noncurrent
Operating	Other long-term liabilities		2,326		2,553
Finance	Finance lease obligation		47,976		48,149
Total lease liabilities		$	54,108	$	54,245
* Finance lease assets are recorded net of accumulated depreciation of $47.6 million and include $0.7 million of prepaid financing costs as of March 31, 2020. Finance lease assets are recorded net of accumulated depreciation of $47.4 million and include $0.7 million of prepaid financing costs as of December 31, 2019.

Schedule of lease costs

		Three months ended
		March 31,
Lease cost	Classification	2020		2019
Operating lease cost		(in thousands)
Service	Cost of revenue	$	550	$	597
Research and development	Operating expenses		81		66
Sales and marketing*	Operating expenses		332		355
General and administrative*	Operating expenses		215		208
Total operating lease cost		$	1,178	$	1,226
Finance lease cost
Depreciation of leased assets	Cost of revenue, R&D, Sales and marketing and G&A	$	353	$	333
Interest on lease liabilities	Interest expense		1,303		1,230
Total finance lease cost		$	1,656	$	1,563
Total lease cost		$	2,834	$	2,789
* Sales and marketing, general and administrative expense includes short-term lease and variable lease costs of approximately $0.2 million for the three months ended March 31, 2020 and 2019, respectively.

Schedule of future minimum operating leases

	Finance		Operating		Total
Maturity of Lease Liabilities	Leases		Leases		Leases
	(in thousands)
2020	$	4,298	$	2,728	$	7,026
2021		5,848		2,094		7,942
2022		5,980		838		6,818
2023		6,114		168		6,282
2024		6,252		70		6,322
Thereafter		79,653		203		79,856
Total lease payments	$	108,145	$	6,101	$	114,246
Less interest portion*		(59,596)		(542)		(60,138)
Finance lease and operating lease obligations	$	48,549	$	5,559	$	54,108
* 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	2020
Weighted-average remaining lease term (years):
Operating leases		1.8
Finance leases		16.8
Weighted-average discount rate:
Operating leases		4.5%
Finance leases		10.5%

Schedule of cash outflows by lease type

	Three months ended
	March 31,
Cash paid for amounts included in the measurement of lease liabilities	2020		2019
	(in thousands)
Operating cash outflows from operating leases	$	1,178	$	1,226
Operating cash outflows from finance leases		1,422		1,391
Financing cash outflows from finance leases		—		—
Operating lease assets obtained in exchange for operating lease liabilities		765		7,453
Finance lease assets obtained in exchange for new finance lease liabilities	$	—	$	—

Schedule of future minimum operating and finance leases

	Finance		Operating		Total
Maturity of Lease Liabilities	Leases		Leases		Leases
	(in thousands)
2020	$	4,298	$	2,728	$	7,026
2021		5,848		2,094		7,942
2022		5,980		838		6,818
2023		6,114		168		6,282
2024		6,252		70		6,322
Thereafter		79,653		203		79,856
Total lease payments	$	108,145	$	6,101	$	114,246
Less interest portion*		(59,596)		(542)		(60,138)
Finance lease and operating lease obligations	$	48,549	$	5,559	$	54,108
* Finance lease interest calculated using the implied interest rate; operating lease interest calculated using estimated corporate borrowing rate.