10. Leases

The Company has operating leases for classroom site locations, office space, office equipment, and optical fiber communication lines. These leases range from 3 months to 10 years. At lease inception, we determined the lease term by assuming no exercises of renewal options, due to the Company’s constantly changing geographical needs for its university partners. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets and we recognize lease expense for these leases on a straight-line basis over the lease term. The Company has operating lease costs of $865 and $423 for the three month period ended March 31, 2019 and 2018, respectively. The consolidated financial statements for years before January 1, 2019 are not presented on the same accounting basis with respect to leases. There was an immaterial amount of future lease obligations as of March 31,2018. The majority of leases that existed for the three months ended March 31, 2018 were assigned to GCU in the Transaction that occurred on July 1, 2018.

As of March 31, 2019, the Company had $2,193 of non-cancelable operating lease commitments, primarily for a classroom site location and a copier lease, that have not yet commenced. These operating leases will commence in 2019 with lease terms ranging from 3 to 10 years. The Company’s weighted-average remaining lease term relating to its operating leases is 6.26 years, with a weighted-average discount rate of 4.4%. As of March 31, 2019, the Company had no financing leases.

Future payment obligations with respect to the Company’s operating leases, which were existing at March 31, 2019, by year and in the aggregate, are as follows:


Year Ending December 31,	Amount
2019	$	2,382
2020		2,725
2021		2,581
2022		2,420
2023		1,703
Thereafter		3,909
Total lease payments	$	15,720
Less interest		2,454
Present value of lease liabilities	$	13,266