Leases

12 Months Ended

Dec. 31, 2020

The Company's long-term leases primarily include operating leases and subleases for office space in Washington, D.C. and London, England. The Company recognized ROU assets and lease liabilities related to fixed payments for these long-term operating leases in its Consolidated Balance Sheet as of December 31, 2020 and 2019. The Company also has short-term leases, including office space in Berlin, Germany.

In June 2011, the Company entered into an operating lease agreement under which it leases 33,534 square feet of office space for its headquarters at 2200 Pennsylvania Avenue, N.W. in Washington, D.C. Subject to the prior rights of other tenants, the Company has the right to renew the lease for five years following its expiration in July 2028. As of December 31, 2020, the renewal period has not been included in the lease term. The Company has the right to sublease or assign all or a portion of the premises, subject to standard conditions. The lease may be terminated early by the Company or the landlord under certain circumstances.

In June 2016, the Company entered into a sublease agreement under which it subleases an additional 9,928 square feet of office space for its headquarters at 2200 Pennsylvania Avenue, N.W. in Washington, D.C. The sublease term began in

January 2017 and ends in July 2026 but may be terminated earlier by either party under certain circumstances. The Company has the right to sublease or assign all or a portion of the premises, subject to standard conditions.

In May 2016, the Company entered into an operating lease agreement under which it leases 2,880 square feet of office space in London, England. In November 2020, the Company extended the non-cancellable portion of the lease term from 2021 to 2023 and has the option to renew the lease for an additional three years following its expiration.

The following is a summary of the Company’s ROU assets and operating lease liabilities as of December 31, 2020 and 2019:


(in thousands)	Classification on the Balance Sheet	December 31, 2020			December 31, 2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	10,459		$	11,180

Liabilities
Operating lease current liabilities	Accounts payable and accrued liabilities	$	2,117		$	2,147
Operating lease non-current liabilities	Operating lease non-current liabilities	11,497			12,455
Total lease liabilities		$	13,614		$	14,602

Weighted average remaining lease term		7.1			8.1
Weighted average discount rate(1)		8.1		%	8.1		%

(1)Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019.

For each of the years ended December 31, 2020 and 2019, the Company recognized operating lease cost of $2.3 million and short-term operating lease cost of $0.4 million. The Company also recognized $1.5 million and $1.4 million, respectively, of expense related to non-lease elements, such as building maintenance services and utilities, and executory costs associated with the operating leases. For existing leases as of January 1, 2019, executory costs are excluded from operating lease expense, which is consistent with the Company's accounting under ASC 840. For all leases entered into after January 1, 2019, executory costs are allocated between lease and non-lease elements based upon their relative stand-alone prices. For the year ended December 31, 2018, the Company recognized $3.6 million of rent expense, inclusive of lease expense, non-lease elements, and executory costs for short and long-term operating leases.

Cash paid for amounts included in the measurement of operating lease liabilities is included in operating cash flows and was $2.6 million and $2.5 million for the years ended December 31, 2020 and 2019, respectively.

The table below reconciles the Company's future cash obligations to operating lease liabilities recorded on the balance sheet as of December 31, 2020:



(in thousands)	Operating Leases
2021	$	2,290
2022	2,611
2023	2,462
2024	2,488
2025	2,557
Thereafter	5,624
Total minimum lease payments	18,032
Less: amount of lease payments representing interest	(4,418)
Present value of future minimum lease payments	13,614
Less: current obligations under leases	(2,117)
Operating lease non-current liabilities	$	11,497