LEASES

6 Months Ended

Jun. 30, 2021

The Company determines if an arrangement is a lease at inception. The Company considers any contract where there is an identified asset and the Company has the right to control the use of such asset as a lease. An operating lease ROU asset represents the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As all of the Company’s operating leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available on the adoption date in determining the present value of lease payments. We estimate the incremental borrowing rate based on a yield curve analysis, utilizing the interest rate derived from the fair value analysis of our credit facility and adjusting it for factors that appropriately reflect the profile of secured borrowing over the expected term of the lease. The operating lease ROU assets include any lease payments made prior to the rent commencement date and exclude lease incentives. Our leases have remaining lease terms of one year to 11 years. Lease terms may include options to extend the lease term used in determining the lease obligation when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments are recognized on a straight-line basis over the lease term for operating leases.

Our operating lease cost for the three months ended June 30, 2021 and 2020 was $3.8 million and $3.7 million, respectively. Our operating lease cost for the six months ended June 30, 2021 and 2020 was $7.6 million and $7.4 million, respectively. Our variable lease cost for the three and six months ended June 30, 2021 was less than $0.1 million. The net change in the ROU asset and lease liability are included in other assets in the condensed consolidated cash flows for the six months ended June 30, 2021 and 2020.

Supplemental cash flow information and non-cash activity related to our operating leases are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Operating cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	3,829	$	3,802	$	7,037	$	7,643
Non-cash activity:
Lease liabilities arising from obtaining right-of-use assets	$	3,152	$	8,731	$	3,202	$	8,781

Weighted-average remaining lease term and discount rate for our operating leases is as follows:

	As of June 30,
	2021			2020
Weighted-average remaining lease term	5.71 years			6.39 years
Weighted-average discount rate		10.93	%		11.94	%

Maturities of lease liabilities by fiscal year for our operating leases as of June 30, 2021 are as follows:

Year ending December 31,
2021 (excluding the six months ended June 30, 2021)	$	7,909
2022		15,668
2023		14,531
2024		12,952
2025		11,205
2026		8,122
Thereafter		10,560
Total lease payments		80,947
Less: imputed interest		(20,308	)
Present value of lease liabilities	$	60,639