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Leases
 12 Months Ended
Dec. 31, 2019
Leases, Capital [Abstract]  
Leases Leases

Lessee

The Company leases multiple office facilities which are contracted under various cancelable and non-cancelable operating leases, most of which provide extension or early termination options. The Company's lease agreements do not contain any residual value guarantees or material restrictive covenants.

As of December 31, 2019, the weighted average implicit rate was 4.10% and the weighted average remaining lease term was 3.3 years.

The following table summarizes the components of the Company's leases (in thousands):
Balance Sheet
Financial statement caption
 
 
 
 
December 31, 2019
Right-of-use asset - operating
Other assets
 
 
 
 
$
7,616

Lease liability - operating
Accounts payable and other accrued expenses
 
 
 
 
$
8,940

 
 
 
 
 
 
 
Income Statement
 
Year Ended 
December 31, 2019
 
Year Ended 
December 31, 2018
 
Year Ended December 31, 2017
Operating lease cost(1)
Administrative expenses
$
3,012

 
$
2,914

 
$
2,444

                    
(1)
Includes short-term leases that are immaterial.

Cash paid for amounts included in the measurement of lease liabilities under operating cash flows was $3.2 million for the year ended December 31, 2019.

The following represents our future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities as of December 31, 2019 (in thousands):
Years ending December 31,
 
2020
$
3,223

2021
2,667

2022
2,247

2023
1,379

2024
67

2025 and thereafter
—

Total undiscounted future cash flows related to lease payments
$
9,583

Less: imputed interest
(643
)
Total present value of lease liability
$
8,940
















Lessor

Operating Leases

The following is the minimum future rental income as of December 31, 2019 under non-cancelable operating leases, assuming the minimum contractual lease term (in thousands):
Years ending December 31,
 
2020
$
828,350

2021
710,672

2022
591,425

2023
450,601

2024
333,161

2025 and thereafter
641,498

Total
$
3,555,707



Finance Leases

The following table represents the components of the net investment in finance leases (in thousands):
 
December 31, 2019
 
December 31, 2018
Future minimum lease payment receivable(1)
$
476,443

 
$
574,422

Estimated residual receivable(2)
102,238

 
107,598

Gross finance lease receivables
578,681

 
682,020

Unearned income(3)
(165,339
)
 
(203,955
)
Net investment in finance leases(4)
$
413,342

 
$
478,065


                
(1)
There were no executory costs included in gross finance lease receivables as of December 31, 2019 and 2018.
(2)
The Company's finance leases generally include a bargain purchase option and therefore, the Company has immaterial residual value risk for assets.
(3)
There were no unamortized initial direct costs as of December 31, 2019 and 2018.
(4)
As of December 31, 2019, three major customers represented 55%, 24% and 11% of the Company's finance lease portfolio. As of December 31, 2018, three major customers represented 50%, 24% and 13% of the Company's finance lease portfolio. No other customer represented more than 10% of the Company's finance lease portfolio in each of those years.

Maturities of the Company's gross finance lease receivables subsequent to December 31, 2019 are as follows (in thousands):
Years ending December 31,
 
2020
$
121,050

2021
86,315

2022
79,494

2023
60,855

2024
43,765

2025 and thereafter
187,202

Total
$
578,681



The Company evaluates potential losses in its finance lease portfolio by regularly evaluating the specific receivables in the portfolio and analyzing loss experience.

The Company considers an account past due when a payment has not been received in accordance with the terms of the related lease agreement and maintains allowances, if necessary, for doubtful accounts and estimated losses resulting from the inability of its lessees to make required payments under finance leases. These allowances are based on, but not limited to, each lessee's payment history, management's current assessment of each lessee's financial condition and the recoverability of the equipment. As of December 31, 2019 and December 31, 2018, the Company does not have an allowance on its gross finance lease receivables.
Leases Leases

Lessee

The Company leases multiple office facilities which are contracted under various cancelable and non-cancelable operating leases, most of which provide extension or early termination options. The Company's lease agreements do not contain any residual value guarantees or material restrictive covenants.

As of December 31, 2019, the weighted average implicit rate was 4.10% and the weighted average remaining lease term was 3.3 years.

The following table summarizes the components of the Company's leases (in thousands):
Balance Sheet
Financial statement caption
 
 
 
 
December 31, 2019
Right-of-use asset - operating
Other assets
 
 
 
 
$
7,616

Lease liability - operating
Accounts payable and other accrued expenses
 
 
 
 
$
8,940

 
 
 
 
 
 
 
Income Statement
 
Year Ended 
December 31, 2019
 
Year Ended 
December 31, 2018
 
Year Ended December 31, 2017
Operating lease cost(1)
Administrative expenses
$
3,012

 
$
2,914

 
$
2,444

                    
(1)
Includes short-term leases that are immaterial.

Cash paid for amounts included in the measurement of lease liabilities under operating cash flows was $3.2 million for the year ended December 31, 2019.

The following represents our future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities as of December 31, 2019 (in thousands):
Years ending December 31,
 
2020
$
3,223

2021
2,667

2022
2,247

2023
1,379

2024
67

2025 and thereafter
—

Total undiscounted future cash flows related to lease payments
$
9,583

Less: imputed interest
(643
)
Total present value of lease liability
$
8,940
















Lessor

Operating Leases

The following is the minimum future rental income as of December 31, 2019 under non-cancelable operating leases, assuming the minimum contractual lease term (in thousands):
Years ending December 31,
 
2020
$
828,350

2021
710,672

2022
591,425

2023
450,601

2024
333,161

2025 and thereafter
641,498

Total
$
3,555,707



Finance Leases

The following table represents the components of the net investment in finance leases (in thousands):
 
December 31, 2019
 
December 31, 2018
Future minimum lease payment receivable(1)
$
476,443

 
$
574,422

Estimated residual receivable(2)
102,238

 
107,598

Gross finance lease receivables
578,681

 
682,020

Unearned income(3)
(165,339
)
 
(203,955
)
Net investment in finance leases(4)
$
413,342

 
$
478,065


                
(1)
There were no executory costs included in gross finance lease receivables as of December 31, 2019 and 2018.
(2)
The Company's finance leases generally include a bargain purchase option and therefore, the Company has immaterial residual value risk for assets.
(3)
There were no unamortized initial direct costs as of December 31, 2019 and 2018.
(4)
As of December 31, 2019, three major customers represented 55%, 24% and 11% of the Company's finance lease portfolio. As of December 31, 2018, three major customers represented 50%, 24% and 13% of the Company's finance lease portfolio. No other customer represented more than 10% of the Company's finance lease portfolio in each of those years.

Maturities of the Company's gross finance lease receivables subsequent to December 31, 2019 are as follows (in thousands):
Years ending December 31,
 
2020
$
121,050

2021
86,315

2022
79,494

2023
60,855

2024
43,765

2025 and thereafter
187,202

Total
$
578,681



The Company evaluates potential losses in its finance lease portfolio by regularly evaluating the specific receivables in the portfolio and analyzing loss experience.

The Company considers an account past due when a payment has not been received in accordance with the terms of the related lease agreement and maintains allowances, if necessary, for doubtful accounts and estimated losses resulting from the inability of its lessees to make required payments under finance leases. These allowances are based on, but not limited to, each lessee's payment history, management's current assessment of each lessee's financial condition and the recoverability of the equipment. As of December 31, 2019 and December 31, 2018, the Company does not have an allowance on its gross finance lease receivables.