Leases

12 Months Ended

Dec. 31, 2019

Leases

Leases

9. Leases

The Company has operating leases for classroom site locations, office space, office equipment, and optical fiber communication lines. These leases have terms that range from 3 months to 10 years. At lease inception, we determined

the lease term by assuming no exercises of renewal options, due to the Company’s constantly changing geographical needs for its university partners. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets and we recognize lease expense for these leases on a straight-line basis over the lease term. The Company has operating lease costs of $4,084, $827 and $1,545 for the years ended December 31, 2019, 2018 and 2017, respectively. The consolidated financial statements for years before January 1, 2019 are not presented on the same accounting basis with respect to leases. There was an immaterial amount of future lease obligations as of December 31, 2018. The majority of leases that existed for the year ended December 31, 2018 were assigned to GCU in the Transaction that occurred on July 1, 2018.

As of December 31, 2019, the Company had $16,135 of non-cancelable operating lease commitments, primarily for new office space in Indianapolis, Indiana and classroom site locations, that have not yet commenced. These operating leases will commence in 2020 with an average lease term of 10.5 years. The Company’s weighted-average remaining lease term relating to its operating leases is 8.3 years, with a weighted-average discount rate of 4.29%. As of December 31, 2019, the Company had no financing leases.

Future payment obligations with respect to the Company’s operating leases, which were existing at December 31, 2019, by year and in the aggregate, are as follows:

Year Ending December 31,	Amount
2020	$	3,767
2021		4,579
2022		4,419
2023		3,835
2024		3,400
Thereafter		14,331
Total lease payments	$	34,331
Less interest		5,728
Present value of lease liabilities	$	28,603