Leases

3 Months Ended

Mar. 31, 2019

We have entered into renewable commitment agreements for certain real estate facilities and equipment, such as computers and printers, which we individually classify as either operating or finance leases. We possess contractual options to renew certain leases ranging from 6 months to 5 years at a time, as well as, in certain instances, contractual options to terminate leases with varying notification requirements and potential termination fees. As of March 31, 2019, our leases with initial terms greater than twelve months had remaining lease terms of up to 13 years.

The following table provides a breakdown of lease balances within our condensed consolidated balance sheet as of March 31, 2019 and December 31, 2018:



(in thousands)
Lease Type and Classification	Included Within	March 31, 2019		December 31, 2018 (1)
Assets
Operating	Operating lease assets	$	64,606	$	—
Finance	Property and equipment, net	5,895		5,002
Total		$	70,501	$	5,002

Liabilities
Current
Operating	Operating lease liabilities, current	$	16,709	$	—
Finance	Current portion of long-term debt	2,465		2,340
Long-term
Operating	Operating lease liabilities, net of current	82,851		—
Finance	Long-term debt, net of current	3,534		2,753
Total		$	105,559	$	5,093

(1) As permitted, December 31, 2018 is presented under prior GAAP in effect at that time. As such, prior year does not contain comparable operating assets and/or liabilities. See Note 1 - Basis for Condensed Consolidated Financial Statements for further details.

For the three months ended March 31, 2019, the components of lease cost are as follows:



(in thousands)
Lease Cost	Included Within	March 31, 2019
Finance lease cost
Amortization of lease assets	Depreciation and amortization	$	825
Interest on lease liabilities	Interest expense	$	30

Operating lease cost	SG&A	$	5,270
Operating lease cost	Cost of services	401
		$	5,671

Other supplementary information for the three months ended March 31, 2019 are as follows:



(in thousands)
Other Information	Finance Leases			Operating Leases
Cash paid for amounts included in measurement of liabilities
Operating cash outflows	$	30		$	6,907
Financing cash outflows	$	822		$	—

Right-of-use assets obtained in exchange for lease liabilities	$	1,739		$	862
Weighted average remaining lease term (years)	2.9			8.5
Weighted average discount rate	3.78		%	6.49		%

Maturities of lease liabilities as of March 31, 2019 are as follows:



(in thousands)	Finance Leases			Operating Leases
2019	$	1,970		$	16,796
2020	2,141			22,898
2021	1,255			17,702
2022	634			10,823
2023	289			8,487
Thereafter	70			56,486
Total lease payments	6,359			133,192
Less imputed interest	(360		)	(33,632		)
Total	$	5,999		$	99,560

Future minimum lease commitments, undiscounted, as of December 31, 2018 were as follows:



(in thousands)
2019	$	26,738
2020	25,413
2021	19,214
2022	12,149
2023	8,908
Thereafter	57,179
Total	$	149,601

As of March 31, 2019, we have an operating lease for a facility that has not yet commenced with an initial lease liability of approximately $2.0 million and a seven-year term, which is not reflected within the 2019 maturity schedule above. Total lease cost for all operating leases, including month-month rentals, for the three months ended March 31, 2018, excluding taxes, was $5.9 million.