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Leases
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Leases

11. Leases

 

We have operating leases for our office facilities. We renewed one operating lease for our office facilities in June 2019. Our leases have remaining lease terms of up to 3.8 years as of June 30, 2019. Upon adoption of ASC 842, we did not elect to apply the hindsight expedient in evaluating our renewal option, and as such, we did not include the renewal period in our lease term because at the inception we were not reasonably certain that we would exercise the renewal option. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

 

Our operating lease right-of-use asset and liability were recognized at the adoption date of ASC 842 based on the present value of lease payments over the remaining lease term at the adoption date. In determining the net present value of lease payments, we used our incremental borrowing rate based on the information available, including remaining lease term, at the adoption date of ASC 842.

 

Upon the renewal of the operating lease in June 2019, we remeasured the lease liability to reflect the changes to the lease term and the lease payments using a discount rate at the date of remeasurement on the basis of the remaining lease term and the remaining lease payments. We recognized the remeasurement amount of the lease liability as an adjustment to the lease right-of-use asset. This resulted in an $11.1 million increase to the lease liability and the lease right-of-use asset at the remeasurement date.

 

The components of lease expense are as follows (in thousands):

 

 

Three Months Ended June 30, 2019

 

 

Six Months Ended June 30, 2019

 

Operating lease cost

$

622

 

 

$

1,081

 

Short-term lease cost

 

89

 

 

 

178

 

Total

$

711

 

 

$

1,259

 

 

Cash flow information related to leases are as follows (in thousands):

 

 

 

Six Months Ended June 30, 2019

 

Cash paid for amounts included in the measurement of lease liability:

 

 

 

 

Operating cash flows from operating lease

 

 

$

1,372

 

Supplemental non-cash information:

 

 

 

 

Right-of-use asset obtained in exchange for lease obligation due to remeasurement

 

$

11,103

 

Supplemental balance sheet information related to leases are as follows (in thousands):

 

Classification

 

As of June 30, 2019

 

Operating lease

 

 

 

 

 

Lease right-of-use asset

 

 

 

 

 

     Non-current

Operating lease right-of-use asset

 

$

12,316

 

Lease liability

 

 

 

 

 

     Current

Accrued and other liabilities

 

$

3,004

 

     Non-current

Long-term portion of lease liability

 

$

10,204

 

 

 

 

 

 

 

Weighted Average Remaining Lease Term

 

 

 

 

 

Operating lease

 

 

3.8 years

 

 

 

 

 

 

 

Weighted Average Discount Rate

 

 

 

 

 

Operating lease

 

 

6.61%

 

 

As of June 30, 2019, the maturity of our lease liability was as follows (in thousands):

 

Year ending December 31,

 

 

Operating Lease

 

Remainder of 2019

 

 

$

1,392

 

2020

 

 

 

4,024

 

2021

 

 

 

4,553

 

2022

 

 

 

4,713

 

2023

 

 

 

1,188

 

     Total lease payments

 

 

 

15,870

 

Less imputed interests

 

 

 

(2,662

)

     Total lease liability

 

 

$

13,208