The Company determines whether an arrangement is a lease at inception. The Company has operating leases for land, office space, data centers and storage facilities, as well as office equipment and vehicles. The Company’s leases have remaining lease terms of one year to 14 years, some of which include options to extend the lease term for up to five years, and some of which include options to terminate the lease within one year. The Company considered these options in determining the lease term used to establish the Company’s right-of use assets and lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the lease term. The operating lease ROU asset also includes any lease payments made in advance of lease commencement and excludes lease incentives. The lease terms used in the calculations of the operating ROU assets and operating lease liabilities include options to extend or terminate the lease when the Company is reasonably certain that it will exercise those options. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

The Company has lease agreements with lease and non-lease components, which are generally not accounted for separately.

	Three Months Ended March 31,
	2019
Operating lease cost	$	1,015

The Company has lease arrangements which are classified as short-term in nature. These leases meet the criteria for operating lease classification. In addition, the Company has variable lease costs associated with certain leases. Lease costs associated with the short-term leases and variable lease components, included in SG&A expenses on the Company’s condensed consolidated statements of operations, are not material.

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

	Three Months Ended March 31,
	2019
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$	1,130
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations	$	10,923

Supplemental balance sheet information related to our operating leases is as follows:

		March 31,
	Balance Sheet Classification	2019
Right-of-use assets	Other assets	$	10,171
Current lease liabilities	Accrued liabilities		2,998
Non-current lease liabilities	Other liabilities		10,000

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

	March 31,
	2019
Weighted-average remaining lease term (in years)		5.06
Weighted-average discount rate		8.0	%

Maturities of lease liabilities by fiscal year for our operating leases are as follows:

	March 31,
	2019
2019 (remaining)	$	2,923
2020		3,410
2021		2,764
2022		2,111
2023		1,720
Thereafter		2,928
Total lease payments		15,856
Less: Imputed interest		(2,858	)
Present value of lease liabilities	$	12,998

As of March 31, 2019, the Company is finalizing a modification to an existing office lease, extending the lease term by approximately nine years. The Company expects the impact of this lease modification will result in an increase in the Company’s operating ROU assets and lease liabilities of approximately $3,000.

Although most of the Company’s revenue from its product sales comes from the sale of subscriber communicators, the Company also leases some subscriber communicators to certain customers. The Company determines the existence of a lease when the customer controls the use of the identified product for a period of time defined in the lease agreement. The Company’s leases range in duration between three to five years, with payment generally collected in monthly installments. Refer to “Note 2 – Summary of Significant Accounting Policies” for more information.

The Company classifies these leases as sales-type leases and recognizes revenue and cost of sales upon delivery or installation, depending on the specific contractual terms. The Company’s leases include certain termination fees, as defined in the lease agreement, and do not typically include purchase rights at the end of the lease.