Leases

9 Months Ended

Sep. 30, 2020

The Company has entered into operating leases primarily for office facilities. These leases have terms which typically range from 1 year to 10 years, and often include options to renew. These renewal terms can extend the lease term up to 6 years, and are included in the lease term when it is reasonably certain that the Company will exercise the option. These operating leases are included as operating lease right-of-use assets on the condensed consolidated balance sheets, and represent the Company’s right to use the underlying asset for the lease term. The present value of the Company’s obligation to make lease payments are included in other current liabilities and other non-current liabilities on the condensed consolidated balance sheets.

The Company has entered into short-term leases primarily for office facilities with an initial term of twelve months or less, and a professional sports team suite with a 20-year term, which it uses for sales and marketing purposes. The effective lease term for the professional sports team suite is based on the cumulative days available for use throughout the 20-year contractual term, which is less than twelve months and therefore is classified as a short-term lease. As of September 30, 2020, the Company’s lease commitment of $5.1 million, relating to the professional sports team suite, expires in 2034, and does not reflect short-term lease costs. These leases are not recorded on the Company's condensed consolidated balance sheet due to the accounting policy election as discussed under Note 2 to the condensed consolidated financial statements.

All operating lease expense is recognized on a straight-line basis over the lease term. During the three and nine months ended September 30, 2020, the Company recognized $1.5 million and $3.8 million, respectively, in total lease costs, which is comprised of $1.3 million and $3.0 million, respectively, in operating lease costs for right-of-use assets and $0.3 million and $0.8 million, respectively, in short-term lease costs related to short-term operating leases. During the three and nine months ended September 30, 2019, the Company recognized $0.9 million and $2.7 million, respectively, in total lease costs, which is comprised of $0.8 million and $2.4 million, respectively in operating lease costs for right-of-use assets and $0.1 million and $0.3 million, respectively, in short-term lease costs related to short-term operating leases.

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. The Company has certain contracts for office facilities which may contain lease and non-lease components which it has elected to be treated as a single lease component due to the accounting policy election as discussed under Note 2 to the condensed consolidated financial statements.

Supplemental cash flow information related to operating leases was as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Cash paid for operating lease liabilities	$	975	$	1,500	$	2,885	$	4,317
Right-of-use assets obtained in exchange for lease obligations	1,523		—		12,297		12,955

Supplemental balance sheet information related to operating leases was as follows (in thousands, except lease term and discount rate):


	September 30, 2020			December 31, 2019
Operating right-of-use assets reported as:
Operating lease right-of-use assets	$	17,181		$	7,211

Operating lease liabilities reported as:
Other current liabilities	$	3,727		$	3,168
Other non-current liabilities	16,572			6,692
Total operating lease liabilities	$	20,299		$	9,860

Weighted average remaining lease term (in years)	7.2			3.9
Weighted average discount rate	5.8		%	7.9		%

Maturities of operating lease liabilities were as follows (in thousands):


	Operating Leases
2020, remaining three months	$	1,011
2021	4,726
2022	3,561
2023	3,469
2024	2,857
2025 and thereafter	9,988
Total lease payments	$	25,612

Less: Imputed Interest	(5,313)
Total	$	20,299