7. Leases

We adopted ASU 2016-02—Leases (Topic 842) as of January 1, 2019, using the new transition method issued under ASU 2018-11, which allows an entity to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption and also allows an entity to elect not to recast its comparative periods in transition. In addition, we elected to use the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. We also elected to use the practical expedient related to short-term leases, allowing us to not recognize right-of-use assets and lease liabilities for leases with a lease term of 12 months or less.

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our consolidated balance sheets.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our 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 our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

We have operating leases primarily for office space facilities. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Our operating leases have remaining lease terms of one year to five years, some of which include options to extend the leases for up to five years or to terminate the leases within one year. Our operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of September 30, 2019, finance leases were not material.

As of September 30, 2019, lease expense was comprised of $2.1 million in operating lease cost.

Supplemental cash flow information related to leases was as follows (in thousands):

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


	September 30, 2019
Operating leases:
Operating lease right-of-use assets	$	7,713

Other current liabilities		1,608
Operating lease liabilities		7,249
Total operating lease liabilities	$	8,857

Weighted average remaining lease term:
Operating leases		5 years

Weighted average discount rate:
Operating leases		9%

Maturities of operating lease liabilities as of September 30, 2019 were as follows (in thousands):


	Operating
	Leases
2019	$	625
2020		2,275
2021		2,281
2022		2,183
2023		2,236
Thereafter		1,336
Total lease payments		10,936
Less imputed interest		2,079
Total operating lease liabilities	$	8,857

The following is a schedule of future minimum lease payments under operating leases as of December 31, 2018 (in thousands):


	Operating
	leases
Year ending December 31,
2019	$	2,765
2020		2,275
2021		2,281
2022		2,183
2023		2,236
Thereafter		1,336
Total minimum lease payments	$	13,076

Three months ended September 30, 2019

Nine months ended September 30, 2019

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

Operating cash flows from operating leases