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

Operating Leases (Tables)

9 Months Ended

Sep. 30, 2019

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


	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
Operating lease cost:
Lease cost (1)	$	6,148		$	18,163
Variable lease cost (2)		1,423			3,913
Sublease income		(68	)		(199	)

	$	7,503		$	21,877

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

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

Maturities of lease liabilities by fiscal year consisted of the following (in thousands):


	September 30, 2019
Remainder of 2019	$	5,187
2020		20,724
2021		18,233
2022		14,158
2023		10,959
Thereafter		21,345

Total future minimum lease payments		90,606
Less imputed interest		(8,790	)

Present value of operating lease liabilities	$	81,816

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


	Nine Months Ended September 30, 2019
Operating cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	15,064
Noncash activity:
ROU assets obtained in exchange for operating lease liabilities	$	17,806
Tenant improvements owned by lessor related to ROU assets (1)	$	3,642

(1)	Reclassification from other assets current.

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


	September 30, 2019
Weighted average remaining operating lease term		5.18 years
Weighted average discount rate		3.9	%

Prior to the adoption of the new leases standard (as previously disclosed in the Company’s Annual Report on Form

10-K

for the year ended December 31, 2018), future minimum lease payments under

non-cancelable

operating leases for office facilities and autos with terms in excess of one year consisted of the following (in thousands):