LEASES

6 Months Ended

Jun. 30, 2020

On January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842), applying the modified retrospective transition.

The Company has operating leases for corporate office space and certain equipment. The leases have original terms from one year to eight years, some of which include options to renew the lease, and are included in the lease term when it is reasonably certain that the Company will exercise the option. No leases include options to purchase the leased property. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We do not have any lease agreements with related parties.

Operating lease right-of-use "ROU" assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Operating ROU assets and liabilities commencing after January 1, 2019 are recognized at commencement date based on the present value of lease payments over the lease term. When readily available, the Company uses the implicit rate in determining the present value of the lease payments. When leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on information available at the commencement of the lease, including the lease term. Because the implicit rate in each lease is not available, the Company used its incremental borrowing rate to determine the present value of lease payments. Leases with an initial term of 12 months or less are not recorded on the balance sheet. All operating lease expense is recognized on a straight-line basis over the lease term.

The components of lease cost were as follows (in thousands):


	For the Three Months Ended June 30,												For the Six Months Ended June 30,
	2020				2019				2020				2019
Operating lease cost^*			$	1,076			$	1,185			$	2,180			$	2,308
Sublease income			(324)				(327)				(660)				(654)
Total lease cost	$	752			$	858			$	1,520			$	1,654

* Includes short-term lease costs and variable lease costs, which are immaterial.

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


		For the Six Months Ended June 30,
		2020		2019
Cash paid for amounts included in measurement of lease liabilities:
	Operating cash flows from operating leases	$	2,346	$	2,265

Right-of-use assets obtained in exchange for lease obligations:
	Operating leases	$	292	$	1,662

Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount):


		June 30, 2020					December 31, 2019
Operating lease right-of-use-assets					$	17,592				$	19,712

Operating lease liabilities - current					3,244					3,643
Operating lease liabilities - non-current					14,959					16,664
	Total operating lease liabilities	$	18,203				$	20,307

Weighted Average Remaining Lease Term (in years)
	Operating leases	5.3					5.9

Weighted Average Discount Rate
	Operating leases	4.01		%			4.00		%

As of June 30, 2020, future operating lease payments were as follows (in thousands):


				Operating Leases
July 1, 2020 through December 31, 2020				$	1,950
2021				3,926
2022				3,683
2023				3,452
2024				2,971
2025 and Thereafter				4,399

	Total lease payments	$	20,381
Less imputed interest				2,178
	Total	$	18,203

As of June 30, 2020 the Company has no additional operating or finance leases that have not yet commenced.