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LEASES
6 Months Ended
Jun. 30, 2019
Lessee Disclosure [Abstract]  
LEASES

 


(4)

LEASES

 

We have operating leases primarily for office space, temporary residences, automobiles and office equipment. Contracts containing assets that we benefit from and control are recognized on our balance sheet. Leases with an initial term of 12 months or less are not recorded on the balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. We combine the lease and non-lease components for all of our lease agreements.

 

Certain leases include one or more options to renew, with renewal terms that can extend the lease term from one to ten years.  The exercise of lease renewal options is at our sole discretion, and lease renewal options are not included in our lease terms if they are not reasonably certain to be exercised. Our lease agreements do not contain any residual value guarantees or restrictive covenants or options to purchase the leased property.

 

Leases (In thousands)

 

Classification

 

June 30, 2019

Assets:

 

 

 

 

 

 

 

Operating

 

Other assets

 

$

4,651

 

 

Liabilities:

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

Operating

 

Other current liabilities

 

 

710

 

 

Noncurrent

 

 

 

 

 

 

 

Operating

 

Other liabilities

 

 

4,420

 

 

Total lease liabilities

 

 

 

$

5,130

 

 

 

 

Maturity of lease liabilities (In thousands)

 

Operating leases

2019

 

$

794

 

 

2020

 

 

1,221

 

 

2021

 

 

1,182

 

 

2022

 

 

990

 

 

2023

 

 

740

 

 

After 2023

 

 

1,187

 

 

Total lease payments

 

$

6,114

 

 

Less: Interest

 

 

984

 

 

Present value of lease liabilities

 

$

5,130

 

 

 

As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. We used the incremental borrowing rate on January 1, 2019 for operating leases that began prior to that date.

 

 

 

 

 

Three Months Ended

 

Six Months Ended

Lease costs (In thousands)

 

Classification

 

June 30, 2019

 

June 30, 2019

Operating lease costs

 

General and administrative

 

$

528

 

 

 

 

1,190

 

 

Short-term leases

 

General and administrative

 

 

629

 

 

 

 

1,083

 

 

Variable lease costs

 

General and administrative

 

 

270

 

 

 

 

604

 

 

Sublease income

 

General and administrative

 

 

(1

)

 

 

 

(3

)

 

Net lease cost

 

 

 

$

1,426

 

 

 

 

2,874

 

 

 

Our variable lease payments consist primarily of shared operating costs recognized over the term of the lease.

 

 

Lease term and discount rate

 

June 30, 2019

 

 

 

 

 

 

Weighted average remaining lease term in years

 

 

4.2

 

 

 

 

 

 

 

 

Weighted average discount rate

 

 

7.0

 

%

 

The cash paid for operating leases included in operating cash flows and in the measurement of lease liabilities for the three and six months ended June 30, 2019 was $0.2 million and $0.5 million, respectively. Right-of-use assets obtained in exchange for operating lease obligations were $0.0 million and $0.5 million, for the three and six months ended June 30, 2019, respectively.

 

Future minimum rental commitments under these leases as of December 31, 2018 are as follows:

 

 

 

Minimum

Year ending (In thousands)

 

rental commitments

2019

 

$

3,511

 

 

2020

 

 

2,804

 

 

2021

 

 

2,501

 

 

2022

 

 

2,455

 

 

2023

 

 

1,734

 

 

After 2023

 

 

2,495

 

 

Total lease payments

 

$

15,500