Leases

The Company adopted ASU No. 2016-02 “Leases (Topic 842)” on January 1, 2019, resulting in the recognition of right-of-use assets of $458 and liabilities of $574. The Company enters into leases for land, office space, warehouses and equipment. A number of the leases include one or more options to renew the lease terms, purchase the leased property or terminate the lease. The exercise of these options is at the Company’s discretion and is therefore recognized on the balance sheet when it is reasonably certain the Company will exercise such options.

Substantially all of the Company’s leases are considered operating leases. Finance leases were not material as of March 31, 2019 or for the three months ended March 31, 2019.

As of March 31, 2019, the Company’s right-of use assets and liabilities for operating leases were as follows:



Other assets	$	422

Other accruals	$	161
Other liabilities	369
Total operating lease liabilities	$	530

Lease commitments under noncancellable operating leases were as follows:



Years Ending December 31,	As of March 31, 2019				As of December 31, 2018
2019	$	137		*	$	193
2020	154				165
2021	119				123
2022	97				102
2023	45				51
Thereafter	21				32
Total lease commitments	$	573			$	666
Less: Interest	(43		)
Present value of lease liabilities	$	530

* As of March 31, 2019, $137 represents the lease commitments for the nine-months remaining until December 31, 2019.

The components of the Company’s operating lease cost for the three months ended March 31, 2019 were as follows:



Operating lease cost	$	45
Short-term lease cost	2
Variable lease cost	10
Sublease income	—
Total lease cost	$	57

Short-term lease cost represents the Company’s cost with respect to leases with a duration of 12 months or less and are not reflected on the Company’s Consolidated Balance Sheets. Variable lease costs are comprised of costs such as the Company’s proportionate share of actual costs for utilities, common area maintenance, property taxes and insurance that are not included in the lease liability and are recognized in the period in which they are incurred.

Supplemental cash flow information related to operating leases for the three months ended March 31, 2019 was as follows:


▪	Payments against amounts included in the measurement of lease liabilities: $57


▪	Lease assets obtained in exchange for lease liabilities: $22

The weighted-average remaining lease term for operating leases was 4 years. The weighted-average discount rate for operating leases was 4.0%.

There were no material operating leases that the Company had entered into and that were yet to commence as of March 31, 2019.