Leases

9 Months Ended

Sep. 30, 2020

15. Leases

The Company has entered into operating leases for its corporate headquarters and other office facilities, financial data terminals and equipment. The Company has no finance leases.

The following table provides additional information regarding the Company’s leases:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Lease cost:
Operating lease cost	$	796		$	789		$	2,384		$	2,379
Short-term lease cost		299			322			941			1,094

Total lease cost	$	1,095		$	1,111		$	3,325		$	3,473

Other information:
Cash paid for amounts included in the measurement of operating liabilities (operating leases)	$	933		$	902		$	2,778		$	2,662

Right-of-use assets obtained in exchange for new operating lease liabilities		n/a			n/a			n/a			n/a

Weighted-average remaining lease term (in years) – operating leases		8.9			9.6			8.9			9.6

Weighted-average discount rate – operating leases		6.3	%		6.3	%		6.3	%		6.3	%

None of the Company’s leases include variable payments, residual value guarantees or any restrictions or covenants relating to the Company’s ability to pay dividends or incur additional financing obligations.

The Company’s lease of its headquarters, which expires on August 20, 2029, includes an option to extend for an additional five years. Rent payable under the option is equal to the fair market rent of the

premises

as determined by the landlord approximately six months prior to the commencement of the extension term. The lease also includes a cancellation option which is effective on August 21, 2024 and requires notice to be provided to the landlord at least 12 months prior. Triggering this option requires a cancellation payment of $4,236. The cancellation and extension options were not reasonably certain of being exercised and were therefore not recognized as part of the

right-of-use

asset and lease liability.

Other leases also include extension, automatic renewal and termination provisions. These provisions were also not reasonably certain of being exercised and were therefore not recognized as part of the

right-of-use

asset and lease liability.

The following table discloses future minimum lease payments at September 30, 2020 with respect to the Company’s operating lease liabilities:


Remainder of 2020	$	907
2021		2,958
2022		2,958
2023		2,958
2024		3,037
2025 and thereafter		14,604

Total future minimum lease payments (undiscounted)	$	27,422

The following table reconciles the future minimum lease payments (disclosed above) at September 30, 2020 to the operating lease liabilities recognized in the Company’s Consolidated Balance Sheet:


Amounts recognized in the Company’s Consolidated Balance Sheet
Lease liability – short term	$	3,124
Lease liability – long term		17,849

Subtotal		20,973
Difference between undiscounted and discounted cash flows		6,449

Total future minimum lease payments (undiscounted)	$	27,422