The Company leases facilities and certain equipment under noncancelable operating leases that expire at various dates through February 2031. Under the terms of the facilities leases, the Company is required to pay its proportionate share of property taxes, insurance and normal maintenance costs.

In 2015, the Company entered into a master lease agreement giving the Company the ability to lease vehicles under operating leases with initial terms of 36 months from the date of delivery. In 2018, the lease agreement was terminated and a new master lease agreement was entered into with a new vendor giving the Company the ability to lease vehicles under operating leases with initial terms ranging from 12 to 50 months from the date of delivery.

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 0.3 year to 6.1 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.

	Years Ended December 31,
	2019		2018		2017
Operating lease cost	$	5,155	$	4,503	$	3,828

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

	Year Ended
	December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,841
Right-of-use assets obtained in exchange for operating lease obligations:		13,399

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

	December 31, 2019
Operating lease liabilities
Current portion included in accrued liabilities	$	3,434
Operating lease liabilities		6,361
Total operating lease liabilities	$	9,795

	Operating Leases
Years ending December 31,
2020	$	3,563
2021		2,660
2022		2,089
2023		1,192
2024		1,080
Thereafter		1,011
Total lease payments		11,595
Less:
Imputed interest		(1,800	)
Total operating lease liabilities	$	9,795

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 December 31, 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 a new 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 December 31, 2019, the lease had not yet commenced. This operating lease is expected to commence in the third quarter of 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.

Estimated annual future minimum payments related to the Company’s operating leases and other long-term contractual obligations were as follows at December 31, 2018 (in thousands):

2019	$	4,770
2020		4,170
2021		6,906
2022		7,181
2023		6,568
Thereafter		38,683
	$	68,278