Leases

3 Months Ended

Mar. 31, 2020

The following are the components of lease activity as of the dates presented:



		Three Months Ended March 31,
Lease Cost	Classification	2020		2019
Operating lease cost:
Operating lease cost⁽¹⁾	Cost of revenue	$	2,138	$	1,693
Operating lease cost⁽¹⁾	Operating expenses	1,094		855
Total operating lease cost		$	3,232	$	2,548

Finance lease cost:
Amortization of right-of-use assets	Cost of revenue	$	17	$	—
Interest on lease liabilities	Cost of revenue	3		—
Total finance lease cost		$	20	$	—

(1) Includes lease expense with initial terms of twelve months or less of $226 and $821 for the three months ended March 31, 2020 and March 31, 2019, respectively.



Maturity of Lease Liabilities	Operating Leases		Finance Leases
2020, excluding the three months ended March 31, 2020	11,461		45
2021	14,289		60
2022	13,589		60
2023	12,612		46
2024	10,931		—
Thereafter	16,915		—
Total lease payments	$	79,797	$	211
Less: Interest and other⁽¹⁾	11,203		18
Present value of lease liabilities	$	68,594	$	193

(1) Interest and other consists of interest expense related to capitalized right of use operating lease liabilities of $9,402, interest expense related to capitalized right of use financing lease liabilities of $18, commitments related to operating leases that have not yet commenced, and operating leases with initial terms of twelve months or less.

There were no leases entered into during the three months ended March 31, 2020 that provided a readily determinable implicit rate; therefore, we used our estimated incremental borrowing rate for each type of lease to discount the lease payments based on information available at lease commencement. Additionally, we evaluated the performance of existing leases in relation to our leasing strategy and have determined that most renewal options would not be reasonably certain to be exercised.



Lease Term and Discount Rate	March 31, 2020		December 31, 2019
Weighted average remaining operating lease term (years)	5.9		6.1
Weighted average remaining finance lease term (years)	3.5		3.8
Weighted average discount rate for operating leases	4.4	%	4.4	%
Weighted average discount rate for finance leases	5.4	%	5.4	%



	Three Months Ended March 31,
Supplemental Cash Flow Information	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	3,464	$	1,975
Operating cash flows from finance leases	3		—
Financing cash flows from finance leases	12		—
Right of use assets obtained in exchange for lease liabilities
Operating leases	$	223	$	33,953
Finance leases	—		—