Leases

The Company's lease population included in the recognition of its beginning right-of-use asset and lease liabilities under the Leases Topic of the FASB ASC is substantially related to the rental of office space. The Company enters into lease agreements as lessee for the rental of office space for both its corporate and branch locations that may include options to extend or terminate early. Many of these real estate leases require variable payments of property taxes, insurance, and common area maintenance, in addition to base rent. Certain of the leases have provisions for free rent months during the lease term and/or escalating rent payments and, particularly for the Company’s longer-term leases for its corporate offices, it has received incentives to enter into the leases such as receiving up to a specified dollar amount to construct tenant improvements. Many of the real estate leases require variable payments of property taxes, insurance, and common area maintenance, in addition to base rent. These leases do not include residual value guarantees, covenants, or other restrictions. See Note 2 - Summary of Significant Accounting Policies.

The table below presents the lease-related assets and liabilities included in the consolidated balance sheets:



Classification on Consolidated Balance Sheets:	December 31, 2019
	(amounts in thousands)
Operating lease right-of-use assets	$	16,964
Operating lease liabilities - current	$	4,878
Operating lease liabilities - non-current	$	19,070
Weighted-average remaining lease term	4.7 years
Weighted average discount rate (a)	6.26		%

________________

(a) Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019.

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities (which do not include short-term leases) recorded in the consolidated balance sheets as of December 31, 2019:



Years Ending December 31:	(amounts in thousands)
2020	$	6,236
2021	5,974
2022	5,094
2023	4,711
2024	3,382
Thereafter	2,487
Total minimum lease payments	27,884
Less: amount of lease payments representing interest	(3,936		)
Present value of future minimum lease payments	23,948
Less: operating lease liabilities - current	(4,878		)
Operating lease liabilities - non-current	$	19,070

Future minimum lease payments, as of December 31, 2018, associated with non-cancelable operating lease agreements with terms of one year or more are as follows:



Years Ending December 31:	(amounts in thousands)
2019	$	7,451
2020	6,287
2021	5,407
2022	4,857
2023	4,700
Thereafter	5,893
Total minimum lease payments	$	34,595

Other Information

The table below provides information regarding supplemental cash flows:



	Year Ended
	December 31, 2019
	(amounts in thousands)
Supplemental Cash Flow Information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	7,477
Right-of-use assets obtained in exchange for new operating lease liabilities	$	1,229

The components of lease expense are as follows:



	Year Ended
	December 31, 2019
	(amounts in thousands)
Amounts Included in Consolidated Statements of Operations:
Operating lease expense	$	6,592
Short-term lease expense	$	8,042
Variable and other lease costs	$	2,446

Operating lease expense, short-term lease expense, and variable and other lease costs are included in selling, general and administrative expenses and direct operating expenses in the consolidated statements of operations, depending on the nature of the leased asset. In the third quarter of 2019, the Company ceased use of several facilities and is in the process of seeking to sublet some of the space where possible. The decision and change in the use of space resulted in a right-of-use asset impairment charge of $1.2 million, included in impairment charges in the consolidated statements of operations. See Note 11 - Fair Value Measurements.

As of December 31, 2019, the Company does not have any material operating leases which have not yet commenced. The Company has an immaterial amount of finance lease contracts related to other equipment rentals which are not included in the above disclosures.