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Leases
3 Months Ended
Mar. 31, 2019
Leases [Abstract]  
Leases

3.

Leases

The Company enters into various non-cancelable operating lease agreements for certain of our offices, data centers, colocations and certain network equipment. The Company’s leases have original lease periods expiring between 2019 and 2024. Many leases include one or more options to renew. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. The Company’s variable lease payments are immaterial and its lease agreements do not contain any material residual value guarantees or material restrictive covenants. Lease costs are included in cost of revenue and general and administrative costs in the Company’s condensed consolidated statements of operations.

The components of lease costs, lease term and discount rate are as follows (lease cost in thousands):

 

 

 

Three Months Ended

March 31, 2019

 

 

Finance lease cost

 

 

 

 

 

Amortization of right-of-use assets

 

$

628

 

 

Interest

 

 

189

 

 

Operating lease cost

 

 

1,090

 

 

Total lease cost

 

$

1,907

 

 

 

 

 

 

 

 

Weighted Average Remaining Lease Term

 

 

 

 

 

Operating leases

 

2.7

 

Years

Finance leases

 

0.5

 

Years

 

 

 

 

 

 

Weighted Average Discount Rate

 

 

 

 

 

Operating leases

 

 

6.0

 

%

Finance leases

 

 

5.7

 

%

 

The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2019 (in thousands):

 

 

 

Operating Leases

 

 

Finance Leases

 

The remainder of 2019

 

$

3,867

 

 

$

2,220

 

2020

 

 

3,110

 

 

 

1,557

 

2021

 

 

1,596

 

 

 

107

 

2022

 

 

947

 

 

 

—

 

2023

 

 

451

 

 

 

—

 

2024

 

 

36

 

 

 

—

 

Total undiscounted cash flows

 

$

10,007

 

 

$

3,884

 

Less imputed interest

 

 

(787

)

 

 

(815

)

Present value of lease liabilities

 

$

9,220

 

 

$

3,069

 

 

As previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 and under Accounting Standard Codification Topic 840, the predecessor to Topic 842, the following is a summary of annual future minimum lease and rental commitments under noncancelable operating leases as of December 31, 2018 (in thousands):

 

Years Ending December 31,

 

Operating Lease

Commitments

 

2019

 

$

5,276

 

2020

 

 

3,101

 

2021

 

 

1,594

 

2022

 

 

782

 

2023

 

 

250

 

2024

 

 

33

 

Total lease commitments

 

$

11,036

 

 

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

 

 

 

Three Months Ended

 

 

 

March 31, 2019

 

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

 

 

 

 

Operating cash flows from operating leases

 

 

1,202

 

Operating cash flows from financing leases

 

576

 

Financing cash flows from finance leases

 

 

48

 

 

 

 

 

 

Lease liabilities arising from obtaining right-of-use-assets:

 

 

 

 

Operating leases

 

 

—

 

Finance leases

 

 

—