Leases

3 Months Ended

Mar. 31, 2019

The Company enters into lease agreements for certain facilities and vehicles that are primarily used in the ordinary course of business. These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease.

Most leases include an option to extend or renew the lease term. The exercise of the renewal option is at the Company's discretion. The operating lease liability includes lease payments related to options to extend or renew the lease term if the Company is reasonably certain of exercising those options. The Company, in determining the present value of lease payments, utilizes either the rate implicit in the lease if that rate is readily determinable or the Company’s incremental secured borrowing rate commensurate with the term of the underlying lease.

Lease expense is included in general and administrative expenses in the condensed consolidated statements of operations. Additional information regarding the Company's operating leases is as follows:


(in thousands)	Three Months Ended March 31, 2019
Operating Lease Cost
Operating leases	$	601
Short-term leases⁽¹⁾	31
Total lease expense	$	632


Other information on operating leases
Cash payments included in operating cash flows	$	585
Weighted average discount rate	9.21		%
Weighted average remaining lease term in years	5.83

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(1) Leases with an initial term of twelve months or less are not recorded on the balance sheet.

The following table presents the contractual maturities of the Company's lease liabilities as of March 31, 2019:


(in thousands)	Lease Liability
Remainder of 2019	$	1,779
2020	1,911
2021	1,639
2022	1,480
2023	1,277
2024 and thereafter	2,377
Total undiscounted lease payments	$	10,463
Less: present value adjustment	3,163
Operating lease liability	$	7,300

The following table presents the future minimum lease payments as of December 31, 2018 under noncancellable operating leases:


(in thousands)	Future lease Payments
2019	$	3,413
2020	2,058
2021	1,790
2022	1,640
2023	1,242
Thereafter	2,396
Total	$	12,539