Leases

The extent of the Company’s lease commitments consist of operating leases for physical office locations with terms ranging from one to 11 years. The Company has accounted for the portfolio of operating leases by disaggregation based on nature and term of the lease. Generally, the leases require a fixed minimum rent with contractual minimum rent increases over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet, but rather lease expense from these leases is recognized on a straight-line basis over the lease term.

When available, the rate implicit in the lease to discount lease payments to present value would be used; however, none of the Company's significant leases as of March 31, 2019 provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate for each portfolio of leases to discount the lease payments based on information available at lease commencement.

The Company has evaluated the performance of existing leases in relation to its leasing strategy and determined that most renewal options would not be reasonably certain to be exercised.

The right of use asset and related lease liability is determined based on the lease component of the consideration in each lease contract. The Company has evaluated its lease portfolio for appropriate allocation of the consideration in the lease contracts between lease and nonlease components based on standalone prices and determined the allocation per the contracts to be appropriate.



Lease Cost	Classification	Three months ended March 31, 2019
Operating lease cost ^(a)	Cost of revenue	$	1,693
Operating lease cost ^(a)	G&A expenses	855
Total lease cost		$	2,548

^(a) Includes lease expense of $821 for leases with initial terms of 12 months or less.



Maturity of Lease Liabilities	Operating Leases
2019, excluding the three months ended March 31, 2019	$	7,932
2020	11,919
2021	11,408
2022	10,635
2023	9,678
Thereafter	21,255
Total lease payments	$	72,827
Less: Interest	(24,892		)
Present value of lease liabilities	$	47,935



Lease Term and Discount Rate	March 31, 2019
Weighted average remaining operating lease term (years)	7.1
Weighted average discount rate for operating leases	4.4	%



Supplemental Cash Flow Information	Three months ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,975
Right of use assets obtained in exchange for lease liabilities
Operating leases	$	33,953