Leases

12 Months Ended

Dec. 31, 2019

Lessee Disclosure [Abstract]

Leases

15. Leases

The Company has entered into operating leases for its corporate headquarters and other office facilities, financial data terminals and equipment. The Company has no finance leases.

Upon the adoption of ASC 842 on January 1, 2019, the Company recognized a right-of-use asset and lease liability of $19,827 and $24,817, respectively. The right-of-use asset was equal to the lease liability, less accrued lease payments and remaining unamortized lease incentives.

The following table provides additional information regarding the Company’s leases:

	Years Ended December 31,
	2019			2018
Lease cost:
Operating lease cost	$	3,174		$	3,352
Short-term lease cost		1,426			1,859
Total lease cost	$	4,600		$	5,211
Other information:
Cash paid for amounts included in the measurement of operating liabilities (operating leases)	$	3,587			n/a
Right-of-use assets obtained in exchange for new operating lease liabilities		n/a			n/a
Weighted-average remaining lease term (in years)—operating leases		9.4			n/a
Weighted-average discount rate—operating leases		6.3	%		n/a

None of the Company’s leases include variable payments, residual value guarantees, or any restrictions or covenants relating to the Company’s ability to pay dividends or incur additional financing obligations.

The Company’s lease of its headquarters, which expires on August 20, 2029, includes an option to extend for an additional five years. Rent payable under the option is equal to the fair market rent of the premise as determined by the landlord approximately six months prior to the commencement of the extension term. The lease also includes a cancellation option which is effective on August 21, 2024 and requires notice to be provided to the landlord at least 12 months prior. Triggering this option requires a cancellation payment of $4,236. The cancellation and extension options were not reasonably certain of being exercised and were therefore not recognized as part of the right-of-use asset and lease liability.

Other leases also include extension, automatic renewal and termination provisions. These provisions were also not reasonably certain of being exercised and were therefore not recognized as part of the right-of-use asset and lease liability.

The following table discloses future minimum lease payments at December 31, 2019 with respect to the Company’s operating lease liabilities:

2020	$	3,682
2021		2,957
2022		2,957
2023		2,957
2024		3,037
2025 and thereafter		14,622
Total future minimum lease payments (undiscounted)	$	30,212

The following table reconciles the future minimum lease payments (disclosed above) at December 31, 2019 to the operating lease liabilities recognized in the Company’s Consolidated Balance Sheet: 

Amounts recognized in the Company’s Consolidated Balance Sheet
Lease liability—short term	$	3,682
Lease liability—long term		19,057
Subtotal		22,739
Difference between undiscounted and discounted cash flows		7,473
Total future minimum lease payments (undiscounted)	$	30,212

The following table discloses the future minimum lease payments at December 31, 2018 (prior period) with respect to the Company’s operating lease liabilities, which is required as the Company elected to apply the new lease requirements at the effective date, rather than the beginning of the earliest comparative period presented:

2019	$	3,764
2020		3,516
2021		3,146
2022		2,957
2023		2,957
2024 and thereafter		17,641
Total future minimum lease payments (undiscounted)	$	33,981