Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.19.3
Leases
9 Months Ended
Sep. 30, 2019
Leases [Abstract]  
Leases

 

6. Leases

 

The Company has entered into operating leases primarily for commercial buildings. These leases have terms which range from 2 years to 8 years, some of which include options to extend the leases for up to 5 years. There are no economic penalties for the Company to extend the lease, and it is not reasonably assured that the Company will exercise the extension options. Based on the present value of the lease payments for the remaining lease term of the Company's existing leases, the Company recognized operating lease right-of-use assets and operating lease liabilities of $6,418 on January 1, 2019. Operating lease right-of-use assets and liabilities commencing after January 1, 2019 are recognized at commencement date based on the present value of lease payments over the lease term. The operating leases do not contain material residual value guarantees or material restrictive covenants.

 

As a result of the MedSupport acquisition, the Company leases a property owned by a related party. Operating lease cost for the property was $8 and $23 for the three and nine months ended September 30, 2019, respectively, which was included in the total operating lease cost.

 

Information related to the Company's right-of-use assets and related operating lease liabilities were as follows:

 

 

 

Nine months ended

September 30, 2019

 

Cash paid for operating lease liabilities

 

$

1,820

 

Operating lease cost

 

 

1,703

 

Non-cash right-of-use assets obtained in exchange for new operating lease obligations

 

 

6,418

 

Weighted-average remaining lease term

 

2.5 years

 

Weighted-average discount rate

 

 

3.8

%

 

Maturities of lease liabilities due in the 12-month period ending September 30,

 

 

 

 

2020

 

$

2,428

 

2021

 

 

1,668

 

2022

 

 

1,375

 

2023

 

 

1,223

 

2024

 

 

1,223

 

Thereafter

 

 

 

 

 

 

7,917

 

Less imputed interest

 

 

(601

)

Total lease liabilities

 

$

7,316

 

 

 

 

 

 

Operating lease liability - current

 

$

2,193

 

Operating lease liability - noncurrent

 

$

5,123

 

Total lease liabilities

 

$

7,316

 

 

 

As of September 30, 2019, the Company has additional operating leases for its corporate headquarters in California and commercial and industrial space in Texas that have not yet commenced, with total minimum lease payments of $27,118. Lease payments for its corporate headquarters will increase annually by the lesser of the change, if any, in the Consumer Price Index of the Bureau of Labor Statistics of the U.S. Department of Labor or three and one-half percent (3.5%) at each annual adjustment date thereafter. Lease payments for the Company’s commercial and industrial space in Texas will increase annually by two and one-half percent (2.5%) at each annual adjustment date thereafter. These operating leases will commence in 2020 with a lease term of 10-11 years. This table does not include lease payments that were not fixed at commencement or modification.