|3 Months Ended|
Mar. 31, 2019
|Leases of Lessee Disclosure||
The Company primarily leases office facilities under operating lease arrangements expiring at various years through 2023. These leases often have original terms of 3 to 5 years and contain options to extend the lease up to 5 years or terminate the lease, which are included in right-of-use assets and lease liabilities when the Company is reasonably certain it will renew the underlying leases. Since the implicit rate of such leases is unknown and the Company is not reasonably certain to renew its leases, the Company has elected to apply a collateralized incremental borrowing rate to facility leases on the original lease term in calculating the present value of future lease payments. As of March 31, 2019, the weighted average discount rate for operating leases was 5.0% and the weighted average remaining lease term for operating leases was 3.3 years.
The table below presents aggregate future minimum payments due under leases for the next five years and beyond, reconciled to total lease liabilities included in the consolidated balance sheet as of March 31, 2019:
Operating lease cost was $0.9 million and $1.2 million for the three months ended March 31, 2019 and 2018, respectively. Short-term lease costs for the three months ended March 31, 2019 were not material. There were no right-of-use assets obtained in exchange for new liabilities for the three months ended March 31, 2019.
The Company has subleased certain facilities that it ceased using in connection with prior years' restructuring plans (Note 3). Such subleases expire at various years through fiscal 2023. As of March 31, 2019, future minimum rental income under non-cancelable subleases is as follows:
Total sublease income related to leased facilities the Company ceased using in connection with a restructuring plan for the three months ended March 31, 2019 and 2018 was approximately $0.6 million and $0.7 million, respectively (Note 3).
The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef