Leases

9 Months Ended

Sep. 30, 2019

We have operating leases for our office facilities. We renewed one operating lease for our office facilities in June 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 in June 2019.

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



	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating lease costs	$	975	$	2,056
Short-term lease cost	89		267
Total	$	1,064	$	2,323

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



	Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,093
Supplemental non-cash information:
Right-of-use asset obtained in exchange for lease obligation due to remeasurement	$	11,103
Right-of-use asset obtained in exchange for a new operating lease liability	$	270

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



	Classification	As of September 30, 2019
Operating lease
Lease right-of-use assets
Non-current	Operating lease right-of-use asset	$	11,836
Lease liabilities
Current	Accrued and other liabilities	$	3,566
Non-current	Long-term portion of lease liability	$	9,464

Weighted Average Remaining Lease Term
Operating leases		3.5 years

Weighted Average Discount Rate
Operating leases		6.60%

As of September 30, 2019, the maturity of our lease liabilities were as follows (in thousands):



Year ending December 31,	Operating Lease
Remainder of 2019	$	733
2020	4,173
2021	4,628
2022	4,713
2023	1,188
Total lease payments	15,435
Less imputed interests	(2,405		)
Total lease liabilities	$	13,030