XML 45 R13.htm IDEA: XBRL DOCUMENT

LEASES

3 Months Ended

Mar. 31, 2020

The Company determines whether a contract is or contains a lease at inception. At the lease commencement date, the Company records a liability for the lease obligation and a corresponding asset representing the right to use the underlying asset over the lease term. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet and are recognized in expense using a straight-line basis for all asset classes. Variable lease payments are expensed as incurred, which primarily include maintenance costs, services provided by the lessor, and other charges reimbursed to the lessor.

The Company leases office space, data center facilities, printers, and equipment with remaining lease terms ranging from one year to twelve years, some of which contain renewal or purchase options. The exercise of these options is at the Company’s sole discretion. The Company has entered into sublease agreements for unoccupied leased office space and records sublease income netted against rent expense. Additionally, the Company is required to maintain a standby letter of credit in the amount of $1.0 million to satisfy the requirements of a certain lease agreement.

Certain of the Company’s leases contain lease and non-lease components. The Company has elected the practical expedient under ASC 842-10-15-37 for all asset classes which allows companies to account for lease and non-lease components as a single lease component.

The Company’s leases do not contain an implicit rate of return, therefore an incremental borrowing rate was determined. The Company assessed which rate would be most reflective of a reasonable rate the Company would be able to borrow based on asset class and lease term.

Finance lease right-of-use assets of $13.9 million are included in property, equipment, and capitalized software, net on the consolidated balance sheet.

The following table presents components of lease expense for the three months ended March 31, 2020 and March 31, 2019 (in thousands):



	Three Months Ended March 31,
	2020			2019
Finance lease cost
Amortization of right-of-use assets	$	492		$	550
Interest on lease liabilities	107			134
Operating lease cost	2,718			2,111
Variable lease cost	403			494
Sublease income	(131		)	(317		)
Total lease cost	$	3,589		$	2,972

Supplemental cash flow information related to leases for the three months ended March 31, 2020 and March 31, 2019 are as follows (in thousands):



	Three Months Ended March 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	2,492	$	3,573
Operating cash flows for financing leases	107		134
Financing cash flows for financing leases	631		672
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	—	$	2,990

Supplemental balance sheet information related to leases as of March 31, 2020 and December 31, 2019 are as follows:



	March 31, 2020		December 31, 2019
Weighted average remaining lease term:
Operating leases	5 years		5 years
Financing leases	8 years		8 years
Weighted average discount rate:
Operating leases	4.8	%	4.7	%
Financing leases	2.9	%	3.0	%

LEASES

Finance lease right-of-use assets of $13.9 million are included in property, equipment, and capitalized software, net on the consolidated balance sheet.

The following table presents components of lease expense for the three months ended March 31, 2020 and March 31, 2019 (in thousands):



	Three Months Ended March 31,
	2020			2019
Finance lease cost
Amortization of right-of-use assets	$	492		$	550
Interest on lease liabilities	107			134
Operating lease cost	2,718			2,111
Variable lease cost	403			494
Sublease income	(131		)	(317		)
Total lease cost	$	3,589		$	2,972

Supplemental cash flow information related to leases for the three months ended March 31, 2020 and March 31, 2019 are as follows (in thousands):



	Three Months Ended March 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	2,492	$	3,573
Operating cash flows for financing leases	107		134
Financing cash flows for financing leases	631		672
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	—	$	2,990

Supplemental balance sheet information related to leases as of March 31, 2020 and December 31, 2019 are as follows:



	March 31, 2020		December 31, 2019
Weighted average remaining lease term:
Operating leases	5 years		5 years
Financing leases	8 years		8 years
Weighted average discount rate:
Operating leases	4.8	%	4.7	%
Financing leases	2.9	%	3.0	%