Leases

6 Months Ended

Jun. 30, 2020

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


		Three Months Ended June 30,						Six Months Ended June 30,
Lease Cost	Classification	2020		2019		2020		2019
Operating lease cost:
Operating lease cost⁽¹⁾	Cost of revenue	$	2,144	$	2,091	$	4,282	$	3,785
Operating lease cost⁽¹⁾	Operating expenses	1,093		855		2,187		1,710
Total operating lease cost		$	3,237	$	2,946	$	6,469	$	5,495

Finance lease cost:
Amortization of right-of-use assets	Cost of revenue	$	17	$	—	$	34	$	—
Interest on lease liabilities	Cost of revenue	3		—		5		—
Total finance lease cost		$	20	$	—	$	39	$	—

(1) Includes lease expense with initial terms of twelve months or less of $247 and $668 for the three months ended June 30, 2020 and 2019, respectively, and $473 and $1,489 for the six months ended June 30, 2020 and 2019, respectively.


Maturity of Lease Liabilities	Operating Leases		Finance Leases
2020, excluding the six months ended June 30, 2020	$	7,655	$	30
2021	14,800		60
2022	14,437		60
2023	13,488		45
2024	12,223		—
Thereafter	22,163		—
Total lease payments	$	84,766	$	195
Less: Interest and other⁽¹⁾	18,969		16
Present value of lease liabilities	$	65,797	$	179

(1) Interest and other consists of interest expense related to capitalized right of use operating lease liabilities of $8,664, interest expense related to capitalized right of use financing lease liabilities of $16, 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 six months ended June 30, 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	June 30, 2020		December 31, 2019
Weighted average remaining operating lease term (years)	5.7		6.1
Weighted average remaining finance lease term (years)	3.3		3.8
Weighted average discount rate for operating leases	4.4	%	4.4	%
Weighted average discount rate for finance leases	5.4	%	5.4	%


	Six Months Ended June 30,
Supplemental Cash Flow Information	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	6,994	$	4,445
Operating cash flows from finance leases	5		—
Financing cash flows from finance leases	25		—
Right of use assets obtained in exchange for lease liabilities
Operating leases	$	214	$	47,773
Finance leases	—		—