As described above in Note 10, Recent Accounting Pronouncements, the Company adopted Topic 842 as of January 1, 2019. Prior period amounts have not been adjusted and continue to be reported in accordance with the Company’s historic accounting under Topic 840. Therefore, there were no lease liabilities or right-of-use assets in 2018.

The Company leases facilities and certain equipment under noncancelable operating leases with remaining lease terms of 0.8 year to 6.6 years, one of which includes an option to extend the lease for one five-year term. This optional period was not considered in the determination of the right-of-use asset or the lease liability as the Company did not consider it reasonably certain that it would exercise such option.

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Operating lease cost	$	1,271	$	1,170	$	2,546	$	2,168

Supplemental cash flow information related to the Company’s leases were as follows (in thousands):

	Three Months Ended June 30,		Six Months Ended June 30,
	2019		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,228	$	2,357
Right-of-use assets obtained in exchange for operating lease obligations:		200		11,951

The balance sheet classification of the Company’s lease liabilities was as follows (in thousands):

	June 30, 2019
Operating lease liabilities
Current portion included in accrued liabilities	$	4,412
Operating lease liabilities		6,742
Total operating lease liabilities	$	11,154

	Operating Leases
Remainder of 2019	$	2,461
Years ending December 31,
2020		3,404
2021		2,501
2022		1,909
2023		995
Thereafter		1,932
Total lease payments		13,202
Less:
Imputed interest		(2,048	)
Total operating lease liabilities	$	11,154

Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. As of June 30, 2019, the weighted average remaining lease term is 4.7 years and the weighted average discount rate used to determine the operating lease liability was 8.0%.

In the fourth quarter of 2018, the Company entered into an agreement to lease approximately 67,020 square feet of corporate office space in San Diego, California with total minimum lease payments of $53.7 million over an initial term of 10 years and 9 months. As of June 30, 2019, the lease had not yet commenced. This operating lease is expected to commence around the first half of fiscal year 2020, but may commence earlier if the lessor makes the space available for use earlier than anticipated. In connection with this lease agreement, the Company established a letter of credit for $2.2 million, which has automatic annual extensions and is fully secured by restricted cash.