Leases

6 Months Ended

Jun. 30, 2020

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 9 months to 10 years. At lease inception, we determine 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 had operating lease costs of $3,055 and $1,507 for the six-month periods ended June 30, 2020 and 2019, respectively.

As of June 30, 2020, the Company had $17,416 of non-cancelable operating lease commitments for classroom site locations, that had not yet commenced. These operating leases will commence in 2020 with an average lease term of 9.25 years. The Company’s weighted-average remaining lease term relating to its operating leases is 8.83 years, with a weighted-average discount rate of 3.72%. As of June 30, 2020, the Company had no financing leases.

Future payment obligations with respect to the Company’s operating leases, which were existing at June 30, 2020, by year and in the aggregate, are as follows:

Year Ending December 31,	Amount
2020	$	2,946
2021		6,499
2022		6,392
2023		5,817
2024		5,422
Thereafter		25,971
Total lease payments	$	53,047
Less interest		7,855
Present value of lease liabilities	$	45,192