Commitments and Contingencies

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and ContingenciesThe Company is subject, from time to time, to various types of third-party legal claims or litigation that arise in the ordinary course of business, including, but not limited to, property loss claims, personal injury or other damages resulting from contact with the Company's properties. These claims and lawsuits and any resulting damages are generally covered by the Company's insurance policies. The Company accrues for legal costs associated with loss contingencies when these costs are probable and reasonably estimable. While the resolution of these matters cannot be predicted with certainty, based on currently available information, management does not expect that the final outcome of any pending claims or legal proceedings will have a material adverse effect on the financial condition, results of operations or cash flows of the Company.

University House Communities Group, Inc., Indemnity Claims

The Company received an indemnity notice from UHC Acquisition Sub LLC ("UHC") regarding certain matters under the Stock Purchase Agreement, dated January 3, 2016, for University House Communities Group, Inc., which was sold in June 2016. The notice set forth various items for which UHC believed they were entitled to indemnification from the Company. On June 14, 2019, UHC and the Company, through various negotiations, reached a final settlement for the claims in the amount of $30,000, which was paid by the Company on June 24, 2019. The Company recognized losses from discontinued operations related to these claims of $25,500 during the year ended December 31, 2019.

Operating and Finance Lease Commitments

The Company has non-cancelable contracts of property improvements that have been deemed to contain finance leases that, prior to the adoption of Topic 842, were previously classified as capital leases. In addition, the Company has non-cancelable operating leases for office space used in its business and, upon the adoption of Topic 842, the Company recognized operating lease right-of-use ("ROU") assets of $2,890 and lease liabilities of $3,114.

In conjunction with the adoption of Topic 842, the Company elected the following practical expedients and accounting policies:

•to combine lease and non-lease components and apply Topic 842 to the combined component;

•to utilize a portfolio approach for determining a discount rate for groups of leases which are similar in nature and have similar contract provisions;

•to not recognize assets and liabilities related to leases with terms of 12 months or less; and

•to exclude variable lease payments from initial recognition of the lease liabilities and all lease options from the determination of minimum lease terms.

The following table reflects the Company's operating and finance lease arrangements as of December 31, 2020 and 2019:


		As of
	Balance Sheet Caption	December 31, 2020		December 31, 2019
Operating lease ROU assets	Deferred costs and other assets, net	$	2,696	$	2,515
Operating lease ROU accumulated amortization	Deferred costs and other assets, net	$	(896)	$	(539)
Operating lease liabilities	Other liabilities	$	1,976	$	2,169

Finance lease ROU assets	Building and other improvements	$	1,641	$	1,641
Finance lease ROU accumulated amortization	Accumulated depreciation	$	(297)	$	(187)
Finance lease liabilities	Other liabilities	$	673	$	1,050

The following table reflects the Company's total lease cost, weighted-average lease terms and weighted-average discount rates for the years ended December 31, 2020 and 2019:


	Statement of Operations and Comprehensive (Loss) Income Caption	Year ended December 31,
		2020			2019
Minimum operating lease payments	General and administrative	$	663		$	672
Variable operating lease payments	General and administrative	276			122
Short-term operating lease payments	General and administrative	124			313
ROU amortization of finance leases	Depreciation and amortization	109			133
Interest expense of finance leases	Interest expense, net	37			60
Total lease cost		$	1,209		$	1,300


Weighted-average remaining lease term of operating leases		4.0 years			4.7 years
Weighted-average remaining lease term of finance leases		1.8 years			2.8 years
Weighted-average discount rate of operating leases		4.44		%	4.44		%
Weighted-average discount rate of finance leases		3.50		%	3.50		%

The following table reflects the Company's future minimum lease obligations as of December 31, 2020:


	Future Minimum Lease Payments
Scheduled minimum payments by year:	Operating Leases		Finance Leases
2021	$	547	$	408
2022	522		279
2023	536		21
2024	550		—
2025	53		—
Thereafter	—		—
Total expected minimum lease obligation	2,208		708
Less: Amount representing interest (a)	(232)		(35)
Present value of net minimum lease payments	$	1,976	$	673

(a)Interest includes the amount necessary to reduce the total expected minimum lease obligations to present value calculated at the Company's incremental borrowing rate.