Marcus & Millichap, Inc. Quarterly report pursuant to Section 13 or 15(d)

Operating Leases (Tables)

3 Months Ended

Mar. 31, 2019

The operating lease cost consisted of the following (in thousands):

⁽¹⁾	Includes short-term lease cost and ROU asset amortization.

⁽²⁾	Primarily relates to common area maintenance, property taxes, insurance, utilities and parking.

⁽³⁾	The Company subleases certain office space to subtenants. The rental income received from these subleases is included as a reduction to lease cost.

Future minimum lease payments under non-cancelable operating leases consisted of the following (in thousands):


	March 31, 2019
Remainder of 2019	$	15,233
2020		19,376
2021		16,907
2022		12,364
2023		8,778
Thereafter		10,554

Total future minimum lease payments		83,212
Less imputed interest		(7,360	)

Present value of operating lease liabilities	$	75,852

Supplemental cash flow information and noncash activity related to the operating leases consisted of the following (in thousands):


	Three Months Ended March 31, 2019
Operating cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	4,842
Noncash activity:
ROU assets and operating lease liabilities in connection with adoption of new lease standard	$	76,735
Reclassification of prepaid rent and deferred rent to ROU assets in connection with adoption of new lease standard	$	7,801
ROU assets obtained in exchange for operating lease liabilities	$	3,227
Initial direct costs related to ROU assets ⁽¹⁾	$	1,306

⁽¹⁾	Reclassification from other assets current.

Other information related to the operating leases consisted of the following:


	March 31, 2019
Weighted average remaining operating lease term		4.75 years
Weighted average discount rate		3.9	%