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Leases | 12 Months Ended
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Dec. 31, 2019
Leases [Abstract] |
Leases | Note 9 – Leases As mentioned in Note 1 – Summary of Significant Accounting Policies, the Company adopted ASC Topic 842, Leases on January 1, 2019, using the modified retrospective approach. The adoption of this accounting standard resulted in the recording of operating lease right-of-use (“ROU”) assets of $9.2 million in Operating lease right-of use assets, and operating lease liabilities of $2.5 million and $8.5 million in Other accrued expenses and Long-term lease liabilities, respectively, as of January 1, 2019, to capture the cumulative effect of the standard. The difference between the asset and liability is a result of lease incentives, such as tenant improvement allowances, and deferred rent on the balance sheet at transition. The Company leases certain real estate and automobiles. Leases with an initial term of 12 months or less (“short-term leases”) are not recorded on the consolidated balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company determines if an arrangement is a lease at inception. All of our leases are operating leases. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Company’s leases do not provide an implicit rate of return, the Company uses its imputed collateralized rate based on the information available at the commencement date in determining the present value of lease payments. Operating lease ROU assets are comprised of the lease liability plus prepaid rents and are reduced by lease incentives or deferred rents. The Company has lease agreements with non-lease components which are not bifurcated. Some of our leases include one or more options to renew, with renewal terms that can extend the lease from one to five years. The exercise of a lease renewal option typically occurs at the discretion of both parties. Certain leases also include options to purchase the leased property at fair value. For purposes of calculating operating lease liabilities, lease terms are deemed not to include options to extend the lease termination until it is reasonably certain that the Company will exercise that option. Certain of the Company’s lease agreements include payments adjusted periodically for inflation based on the consumer price index. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating lease cost details for the year ended December 31, 2019 are as follows:
|  | Year ended December 31,
|  | 2019
|  | (in thousands)
Building rent |  | $ | 3,397
Automobile rentals |  |  | 1,531
Total net operating lease costs |  | $ | 4,928
Short term lease costs and variable lease costs recognized during the year ended December 31, 2019 are immaterial. Supplemental consolidated balance sheet information related to our operating leases is as follows:
|  | December 31, 2019
in thousands |  |  |
Leases |  |  |
Assets |  |  | 10,580
Operating lease assets |  | $ | 10,580
Liabilities |  |  |
Current |  |  |
Operating lease liabilities |  | $ | 2,636
Noncurrent |  |  |
Operating lease liabilities |  |  | 11,299
Total lease liabilities |  | $ | 13,935
The weighted average remaining lease term for our operating leases is 6.7 years. The weighted-average discount rate for our operating leases is 5%. Supplemental consolidated cash flow information related to leases is as follows:
|  | Year ended
|  | December 31, 2019
|  |  | (in $ thousands)
Supplemental cash flow and other information related to leases was as follows: |  |  |
Operating cash payments from operating leases |  | $ | 3,731
ROU assets obtained in exchange for new operating lease liabilities |  | $ | 4,924
Maturities of our operating leases are as follows:
|  | As of December 31, 2019
|  |  | (in $ thousands)
2020 |  | $ | 3,245
2021 |  |  | 2,784
2022 |  |  | 2,422
2023 |  |  | 1,909
2024 |  |  | 1,183
Later years |  |  | 5,004
Less imputed interest |  |  | (2,612)
Total lease liabilities |  | $ | 13,935
Disclosures related to periods prior to adoption of ASU 2016-02 Operating lease rent expense was $4.9 million for the year ended December 31, 2018 and $3.8 million for the year ended December 31, 2017. Future minimum lease are as follows:
|  | As of December 31, 2018
|  |  | (in $ thousands)
2019 |  | $ | 3,817
2020 |  |  | 3,081
2021 |  |  | 2,671
2022 |  |  | 2,244
2023 |  |  | 1,941
Later years |  |  | 8,870
Minimum lease commitments |  | $ | 22,624
During the year ended December 31, 2018, we entered into a new lease agreement of which a portion commenced during the three months ended September 30, 2019, and remainder will commence during the three months ended March 31, 2020. We estimated as of January 1, 2019 and December 31, 2019 that the undiscounted future minimum obligations related to the portion of the lease not yet commenced to be approximately $7.4 million and $2.0 million, respectively. The $7.4 million obligation is disclosed as part of our future minimum lease obligations table above.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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