Sunrun Inc. Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2019

The components of lease expense were as follows (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Finance lease cost:
Amortization of right-of-use assets	$	3,748		$	2,723		$	7,232		$	5,357
Interest on lease liabilities	433			128			672			247
Operating lease cost	3,620			2,505			6,499			5,134
Short-term lease cost	621			154			1,145			355
Variable lease cost	1,019			730			1,896			1,507
Sublease income	(193		)	(119		)	(349		)	(225		)
Total lease cost	$	9,248		$	6,121		$	17,095		$	12,375

Other information related to leases was as follows (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	2,968		$	2,655		$	5,535		$	5,255
Operating cash flows from finance leases	238			95			439			204
Financing cash flows from finance leases	3,440			1,968			6,445			4,081
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	(245		)	(1,026		)	20,150			91
Finance leases	9,371			4,043			12,937			4,142
Weighted average remaining lease term (years):
Operating leases	5.3			3.7			5.3			3.7
Finance leases	3.1			2.2			3.1			2.2
Weighted average discount rate:
Operating leases	5.2		%	4.1		%	5.2		%	4.1		%
Finance leases	4.2		%	3.7		%	4.2		%	3.7		%

Future minimum lease payments under non-cancellable leases as of June 30, 2019 were as follows (in thousands):



	Operating Leases		Sublease Income		Net Operating Leases		Finance Leases
2019	$	11,953	$	781	$	11,172	$	11,912
2020	11,739		757		10,982		7,541
2021	10,327		276		10,051		5,063
2022	8,920		—		8,920		2,250
2023	7,321		—		7,321		60
Thereafter	9,737		—		9,737		21
Total future lease payments	59,997		1,814		58,183		26,847
Less: Amount representing interest	5,693		—		5,693		1,278
Present value of future payments	54,304		1,814		52,490		25,569
Less: Short term leases not recorded as a liability	11,386		—		11,386		—
Less: Tenant incentives	204		—		204		—
Revised Present value of future payments	42,714		1,814		40,900		25,569
Less: Current portion	10,072		—		10,072		11,206
Long-term portion	$	32,642	$	1,814	$	30,828	$	14,363

Future minimum lease payments under non-cancellable leases as of June 30, 2019 were as follows (in thousands):



	Operating Leases		Sublease Income		Net Operating Leases		Finance Leases
2019	$	11,953	$	781	$	11,172	$	11,912
2020	11,739		757		10,982		7,541
2021	10,327		276		10,051		5,063
2022	8,920		—		8,920		2,250
2023	7,321		—		7,321		60
Thereafter	9,737		—		9,737		21
Total future lease payments	59,997		1,814		58,183		26,847
Less: Amount representing interest	5,693		—		5,693		1,278
Present value of future payments	54,304		1,814		52,490		25,569
Less: Short term leases not recorded as a liability	11,386		—		11,386		—
Less: Tenant incentives	204		—		204		—
Revised Present value of future payments	42,714		1,814		40,900		25,569
Less: Current portion	10,072		—		10,072		11,206
Long-term portion	$	32,642	$	1,814	$	30,828	$	14,363