Lease commitments

6 Months Ended

Jun. 30, 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 terms greater than one year are recognized on the condensed consolidated balance sheets as Operating lease right-of-use assets, Current portion of operating lease liability, and Operating lease liability, net. Financing leases with terms 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 are 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 a number of 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 and six months ended June 30, 2019, the components of lease costs are as follows:



(In thousands)	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating leases:
Rent expense	$	502	$	991
Financing lease:
Leased furniture, fixtures and office equipment depreciation expense	73		97
Interest expense	11		22
Short-term leases:
Rent expense	32		257
Total lease costs	$	618	$	1,367

As of June 30, 2019, the weighted average lease term and discount rate of the Company's leases are as follows:



	June 30, 2019
	Operating Leases		Financing Lease
Weighted average remaining lease term	6.3 years		6.4 years
Weighted average discount rate	5.0	%	5.0	%

As of June 30, 2019, scheduled future maturities of the Company's lease liabilities are as follows:



(In thousands)	June 30, 2019
Year	Operating Leases			Financing Lease
Remainder of 2019	$	1,092		$	76
2020	2,186			157
2021	2,136			157
2022	2,077			158
2023	2,222			169
Thereafter	4,109			312
Total undiscounted cash flows	13,822			1,029
Less: imputed interest	(1,991		)	(154		)
Present value of lease liabilities	$	11,831		$	875

For the three and six months ended June 30, 2019, supplemental cash flow information related to leases are as follows:



(In thousands)	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows provided by operating leases (1)	$	(472	)	$	(297	)
Operating cash flows used for financing lease	$	11		$	24
Lease liabilities related to the acquisition of right-of-use assets:
Operating leases	$	48		$	117

(1) For the three and six months ended June 30, 2019, the Company received a cash reimbursement of $640 for tenant improvements made to its New York City corporate headquarters.

Lease commitments

For the three and six months ended June 30, 2019, the components of lease costs are as follows:



(In thousands)	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating leases:
Rent expense	$	502	$	991
Financing lease:
Leased furniture, fixtures and office equipment depreciation expense	73		97
Interest expense	11		22
Short-term leases:
Rent expense	32		257
Total lease costs	$	618	$	1,367

As of June 30, 2019, the weighted average lease term and discount rate of the Company's leases are as follows:



	June 30, 2019
	Operating Leases		Financing Lease
Weighted average remaining lease term	6.3 years		6.4 years
Weighted average discount rate	5.0	%	5.0	%

As of June 30, 2019, scheduled future maturities of the Company's lease liabilities are as follows:



(In thousands)	June 30, 2019
Year	Operating Leases			Financing Lease
Remainder of 2019	$	1,092		$	76
2020	2,186			157
2021	2,136			157
2022	2,077			158
2023	2,222			169
Thereafter	4,109			312
Total undiscounted cash flows	13,822			1,029
Less: imputed interest	(1,991		)	(154		)
Present value of lease liabilities	$	11,831		$	875

For the three and six months ended June 30, 2019, supplemental cash flow information related to leases are as follows:



(In thousands)	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows provided by operating leases (1)	$	(472	)	$	(297	)
Operating cash flows used for financing lease	$	11		$	24
Lease liabilities related to the acquisition of right-of-use assets:
Operating leases	$	48		$	117

(1) For the three and six months ended June 30, 2019, the Company received a cash reimbursement of $640 for tenant improvements made to its New York City corporate headquarters.