Lease commitments

3 Months Ended

Mar. 31, 2019

At the inception of a contract, the Company determines whether the contract is or contains a lease based on the facts and circumstances present. Operating leases with a term greater than one year are recognized on the condensed consolidated balance sheets as right-of-use assets, current portion of operating lease liability and operating lease liability, net. Financing leases with a term greater than one year are recognized on the condensed consolidated balance sheets as property and equipment, net, accrued expenses and other current liabilities and other non-current liabilities. The Company has elected not to recognize leases with terms of one year or less on the condensed consolidated balance sheets.

Lease obligations and their corresponding assets are recorded based on the present value of lease payments over the expected lease term. As the interest rate implicit in lease contracts is typically not readily determinable, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received. The components of a lease should be split into three categories: lease components, non-lease components and non-components; however, the Company has elected to combine lease and non-lease components into a single component. Rent expense associated with operating leases is recognized over the expected term on a straight-line basis. In connection with financing leases, depreciation of the underlying asset is recognized over the expected term on a straight-line basis and interest expense is recognized as incurred.

The Company has entered into various noncancelable operating and financing lease agreements for certain offices and furniture, fixtures and office equipment. These leases have original lease periods expiring between 2021 and 2025. Although certain leases include options to renew, the Company does not assume renewals in the determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

For the three months ended March 31, 2019, the components of lease costs, lease term and discount rate are as follows:



(In thousands)	Three Months Ended March 31, 2019
Operating leases:
Rent expense	$	489
Financing lease:
Leased furniture, fixtures and office equipment depreciation expense	24
Interest expense	11
Short-term leases:
Rent expense	225
Total lease costs	$	749

Weighted average remaining lease term
Operating leases	6.5 years
Financing lease	6.6 years

Weighted average discount rate
Operating leases	5.0		%
Financing lease	5.0		%

As of March 31, 2019, scheduled future maturities of the Company's lease liabilities are as follows:



(In thousands)	March 31, 2019
Year	Operating Leases			Financing Lease
Remainder of 2019	$	594		$	88
2020	2,160			157
2021	2,131			157
2022	2,082			158
2023	2,222			169
Thereafter	4,116			312
Total undiscounted cash flows	13,305			1,041
Less: imputed interest	(2,134		)	(160		)
Present value of lease liabilities	$	11,171		$	881

For the three months ended March 31, 2019, supplemental cash flow information related to leases are as follows:



(In thousands)	Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	399
Operating cash flows used for financing lease	$	13
Lease liabilities related to the acquisition of right-of-use assets:
Operating lease	$	69

Lease commitments

For the three months ended March 31, 2019, the components of lease costs, lease term and discount rate are as follows:



(In thousands)	Three Months Ended March 31, 2019
Operating leases:
Rent expense	$	489
Financing lease:
Leased furniture, fixtures and office equipment depreciation expense	24
Interest expense	11
Short-term leases:
Rent expense	225
Total lease costs	$	749

Weighted average remaining lease term
Operating leases	6.5 years
Financing lease	6.6 years

Weighted average discount rate
Operating leases	5.0		%
Financing lease	5.0		%

As of March 31, 2019, scheduled future maturities of the Company's lease liabilities are as follows:



(In thousands)	March 31, 2019
Year	Operating Leases			Financing Lease
Remainder of 2019	$	594		$	88
2020	2,160			157
2021	2,131			157
2022	2,082			158
2023	2,222			169
Thereafter	4,116			312
Total undiscounted cash flows	13,305			1,041
Less: imputed interest	(2,134		)	(160		)
Present value of lease liabilities	$	11,171		$	881

For the three months ended March 31, 2019, supplemental cash flow information related to leases are as follows:



(In thousands)	Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	399
Operating cash flows used for financing lease	$	13
Lease liabilities related to the acquisition of right-of-use assets:
Operating lease	$	69