Leases

6 Months Ended

Jun. 30, 2019

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. As the Company’s leases typically do not contain a readily determinable implicit rate, the Company determines the present value of the lease liability using its incremental borrowing rate at the lease commencement date.

Substantially all of the Company’s leases are considered operating leases. Finance leases were not material as of June 30, 2019 or for the three and six months ended June 30, 2019.

As of June 30, 2019, the Company’s right-of use assets and liabilities for operating leases were as follows:



Other assets	$	548

Other accruals	$	153
Other liabilities	530
Total operating lease liabilities	$	683

Lease commitments under noncancellable operating leases were as follows:



Years Ending December 31,	As of June 30, 2019				As of December 31, 2018
2019	$	95		(1)	$	193
2020	155				165
2021	119				123
2022	96				102
2023	60				51
Thereafter	275				32
Total lease commitments	$	800			$	666
Less: Interest	(117		)
Present value of lease liabilities	$	683

⁽¹⁾As of June 30, 2019, $95 represents the lease commitments for the six months remaining until December 31, 2019.

The components of the Company’s operating lease cost for the three and six months ended June 30, 2019 were as follows:



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease cost	$	38	$	83
Short-term lease cost	—		2
Variable lease cost	6		16
Sublease income	—		—
Total lease cost	$	44	$	101

Short-term lease cost represents the Company’s cost with respect to leases with a duration of 12 months or less and is 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 six months ended June 30, 2019 was as follows:


▪	Payments against amounts included in the measurement of lease liabilities: $102


▪	Lease assets obtained in exchange for lease liabilities: $209

As of June 30, 2019, the weighted-average remaining lease term for operating leases was 8 years and 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 June 30, 2019.