Annual report pursuant to Section 13 and 15(d)

Leases

v3.19.3.a.u2
Leases
12 Months Ended
Dec. 31, 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 $31 and $33 for the years ended December 31, 2019 and 2018, 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:

 

(amounts in thousands)

 

Twelve months ended

December 31, 2019

 

Cash paid for operating lease liabilities

 

$

2,486

 

Operating lease cost

 

 

2,269

 

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

 

 

7,855

 

Weighted-average remaining lease term

 

2.6 years

 

Weighted-average discount rate

 

 

3.8

%

 

Maturities of lease liabilities due in the 12-month period ending December 31,

 

 

 

 

2020

 

$

2,228

 

2021

 

 

1,604

 

2022

 

 

1,284

 

2023

 

 

1,217

 

2024

 

 

917

 

Thereafter

 

 

 

 

 

 

7,250

 

Less imputed interest

 

 

(534

)

Total lease liabilities

 

$

6,716

 

 

 

 

 

 

Operating lease liability - current

 

$

2,014

 

Operating lease liability - noncurrent

 

 

4,702

 

Total lease liabilities

 

$

6,716

 

 

As of December 31, 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 $27,215. 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.

 

Supplemental information for comparative periods

As of December 31, 2018, prior to the adoption of Topic 842, future minimum payments under operating leases having initial or remaining non-cancelable lease terms in excess of one year were as follows:

 

(amounts in thousands)

 

Operating leases (1)

 

2019

 

$

2,450

 

2020

 

 

2,212

 

2021

 

 

1,593

 

2022

 

 

1,273

 

2023

 

 

1,215

 

Thereafter

 

 

917

 

Total minimum payments

 

$

9,660

 

 

 

 

 

 

(1) Includes future minimum payments for leases which have not yet commenced.