Leases

12 Months Ended

Dec. 31, 2019

9. Leases

We sublease, on an operating lease basis, two unused office space facilities near our corporate office. Total annual rental income for these facilities is approximately $905,000.

Supplemental consolidated balance sheet information related to leases was as follows (in thousands, except lease term and discount rate):


Operating leases:	December 31, 2019
Operating lease right-of-use assets	$	27,007
Accumulated amortization		(5,013)
Operating lease right-of-use assets, net	$	21,994

Current maturities of operating leases	$	5,487
Non-current maturities of operating lease		17,918
Total operating lease liabilities	$	23,405

Finance leases:
Property and equipment, at cost	$	7,161
Accumulated amortization		(1,279)
Property and equipment, net	$	5,882

Current maturities of finance leases	$	597
Non-current maturities of finance leases		5,415
Total finance lease liabilities	$	6,012

Weighted average remaining lease term (in years):
Operating leases		5.5
Finance leases		10.6

Weighted average discount rate:
Operating leases		5.4%
Finance leases		2.0%

Assets recorded as finance leases as of December 31, 2018 are as follows (in thousands):


	Gross
	Carrying		Accumulated		Net Book
	Value		Amortization		Value
Equipment	$	1,066	$	375	$	691
Leasehold improvements		6,608		507		6,101
Total	$	7,674	$	882	$	6,792

A summary of lease expenses for our finance and operating leases included in General, Administrative, and Marketing Expenses on our Consolidated Statements of Operations and Comprehensive (Loss) Income are as follows (in thousands):



	2019
Amortization of property and equipment	$	771
Interest expense on finance leases		124
Total finance lease expense		895
Operating lease expense^a		6,624
Sublease income		(905)
Total lease expense	$	6,614

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^aTotal rental expense for operating leases was $6.4 million in 2018 and $4.9 million in 2017.

A summary of our supplemental cash flow information is as follows (in thousands):



Cash paid for amounts included in the measurement of lease liabilities:	2019
Operating cash flows for finance leases	$	124
Operating cash flows for operating leases		6,827
Financing cash flows for finance leases		728

Future minimum lease payments and sublease rental income are as follows (in thousands):


	Finance		Operating		Sublease
	Leases		Leases		Income
2020	$	712	$	6,585	$	905
2021		658		6,280		905
2022		613		3,809		306
2023		612		2,584		--
2024		610		2,570		--
Thereafter		3,467		5,027		--
Total minimum lease payments	$	6,672	$	26,855	$	2,116
Less amount representing interest		660		3,450
Present value of net minimum lease payments		6,012		23,405
Less current maturities		597		5,487
Finance lease obligations, less current maturities	$	5,415	$	17,918