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Leases and Other Commitments

12 Months Ended

Dec. 31, 2019

We have operating and finance leases for corporate offices, office furniture and fixtures and computer hardware. Our leases have remaining lease terms of 1 year to 12 years, some of which include options to extend the leases for up to 5 years.

In April 2018, we entered into a lease agreement with respect to 176,222 square feet of office space in Tysons, Virginia for a new corporate headquarters. The term of the lease was 150 months. We took initial possession of the first phase of the new headquarters in October 2018 and began to recognize rent expense. We took possession of 28,805 square feet of adjacent office space in February 2019. We expect to start making recurring rental payments under the lease in the third quarter of 2020.

The following table sets forth the components of lease expense for the year ended December 31, 2019 (in thousands):


	Year Ended December 31,
	2019
Operating lease cost	$	9,733
Finance lease costs:
Amortization of right-of-use assets	700
Interest on lease liabilities	108
Short-term lease cost	462
Variable lease cost	409
Total	$	11,412

Supplemental balance sheet information related to leases as of December 31, 2019 was as follows (in thousands, except for lease term and discount rate):


	As of
	December 31, 2019
Operating Leases
Operating ROU assets	$	24,205

Operating lease liabilities, current	$	3,836
Operating lease liabilities, net of current portion	44,416
Total operating lease liabilities	$	48,252

Finance Leases
Property and equipment, at cost	$	4,475
Accumulated depreciation	(703)
Property and equipment, net	$	3,772

Finance lease liabilities, current	$	1,447
Finance lease liabilities, net of current portion	2,375
Total finance lease liabilities	$	3,822

Weighted Average Remaining Lease Term
Operating leases	11.4
Finance leases	2.5

Weighted Average Discount Rate
Operating leases	9.8		%
Finance leases	5.5		%

Supplemental cash flow information related to leases for the year ended December 31, 2019 was as follows (in thousands):


	Year Ended December 31,
	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases	$	6,413
Operating cash outflows for finance leases	108
Financing cash outflows for finance leases	653
ROU assets obtained in exchange for lease obligations:
Operating leases	523
Finance leases	4,475

The maturities of lease liabilities under non-cancelable operating and finance leases as of December 31, 2019 was as follows (in thousands):


	Operating Leases		Finance Leases
2020	$	3,781	$	1,620
2021	6,896		1,620
2022	7,007		859
2023	7,050		—
2024	7,408		—
Thereafter	57,884		—
Total lease payments	90,026		4,099
Less: imputed interest	(41,774)		(277)
Total	$	48,252	$	3,822

A summary of our future minimum lease commitments and other commitments by year as of December 31, 2018 was as follows (in thousands):


	Office Leases		Equipment Leases		Lease Related Commitments
2019	$	6,985	$	216	$	29,587
2020	6,371		22		—
2021	8,331		—		—
2022	6,939		—		—
2023	6,987		—		—
Thereafter	65,151		—		—
	100,764		238		29,587
Less: tenant improvement allowance	—		—		(14,441)
Total	$	100,764	$	238	$	15,146

Other Commitments

We also have entered into a non-cancellable agreement for the use of technology that is integral in the development of our software and pay annual royalty fees of $0.3 million.

Letters of Credit

At each of December 31, 2019 and 2018, we had outstanding letters of credit totaling $10.5 million in connection with securing our leased office space. All letters of credit are secured by our borrowing arrangement as described in Note 5.

Leases and Other Commitments