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LEASES | 12 Months Ended
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Dec. 31, 2020
Leases [Abstract] |
LEASES | LEASESOur leases consist primarily of operating real estate leases for office space and data centers in the markets in which we conduct business. We also have operating and finance leases for computer and other equipment. Many of our leases include escalating rental payments and incentives, as well as termination and renewal options. Certain of our lease agreements provide that we pay the cost of property taxes, insurance and maintenance. As described in "Note 1—Basis of Presentation and Summary of Significant Accounting Policies," we adopted ASU 2016-02 on January 1, 2019. Unless otherwise indicated, the following information in this footnote applies only to periods after December 31, 2018. As of December 31, 2020 and 2019, right-of-use assets and lease liabilities consisted of the following:
|  | Balance Sheet Location |  | December 31, 2020 |  | December 31, 2019
|  |  |  | (in thousands)
Assets: |  |  |  |  |  |
Operating lease right-of-use assets: |  |  |  |  |  |
Real estate |  | Other noncurrent assets |  | $ | 425,376 |  |  | $ | 355,063 |
Computer equipment |  | Other noncurrent assets |  | 54,959 |  |  | 80,427 |
Other |  | Other noncurrent assets |  | 862 |  |  | 1,310 |
Total operating lease right-of-use-assets |  |  |  | $ | 481,197 |  |  | $ | 436,800 |
Finance lease right-of-use assets: |  |  |  |  |  |
Computer equipment |  | Property and equipment, net |  | $ | 26,737 |  |  | $ | 21,901 |
Other equipment |  | Property and equipment, net |  | 45,560 |  |  | — |
Other |  | Property and equipment, net |  | 4,260 |  |  | 4,808 |
|  |  |  | 76,557 |  |  | 26,709 |
Less accumulated depreciation: |  |  |  |  |  |
Computer equipment |  | Property and equipment, net |  | (6,602) |  |  | (2,190) |
Other equipment |  | Property and equipment, net |  | (8,628) |  |  | — |
Other |  | Property and equipment, net |  | (869) |  |  | (234) |
Total accumulated depreciation |  |  |  | (16,099) |  |  | (2,424) |
Total finance lease right-of-use assets |  |  |  | 60,458 |  |  | 24,285 |
Total right-of-use assets(1) |  |  |  | $ | 541,655 |  |  | $ | 461,085 |
Liabilities: |  |  |  |  |  |
Operating lease liabilities (current) |  | Accounts payable and accrued liabilities |  | $ | 103,706 |  |  | $ | 88,812 |
Operating lease liabilities (noncurrent) |  | Other noncurrent liabilities |  | 448,016 |  |  | 397,488 |
Finance lease liabilities (current) |  | Current portion of long-term debt |  | 18,217 |  |  | 6,570 |
Finance lease liabilities (noncurrent) |  | Long-term debt |  | 57,772 |  |  | 26,426 |
Total lease liabilities |  |  |  | $ | 627,711 |  |  | $ | 519,296 |
(1) As of December 31, 2020 and 2019, approximately 72% and 82% of our right-of-use assets were located in the United States. The weighted-average remaining lease term for operating and finance leases at December 31, 2020 was 7.4 years and 4.3 years, respectively. The weighted-average remaining lease term for operating and finance leases at December 31, 2019 was 7.4 years and 5.1 years, respectively. As of December 31, 2020, the weighted-average discount rate used in the measurement of operating and finance lease liabilities was 3.5% and 3.3%, respectively. As of December 31, 2019, the weighted-average discount rate used in the measurement of operating and finance lease liabilities was 4.1% and 2.8%, respectively. As of December 31, 2020, maturities of lease liabilities were as follows:
|  | Operating Leases |  | Finance Leases
|  | (in thousands)
Year ending December 31, |  |  |  |
2021 |  | $ | 122,002 |  |  | $ | 25,841 |
2022 |  | 107,349 |  |  | 18,950 |
2023 |  | 76,127 |  |  | 17,346 |
2024 |  | 66,309 |  |  | 15,682 |
2025 |  | 56,508 |  |  | 2,834 |
2026 and thereafter |  | 204,895 |  |  | — |
Total lease payments(1) |  | 633,190 |  |  | 80,653 |
Imputed interest |  | (81,468) |  |  | (4,664) |
Total lease liabilities |  | $ | 551,722 |  |  | $ | 75,989 |
(1) Total operating lease payments do not include approximately $147.5 million for operating leases that had not yet commenced at December 31, 2020. Total finance lease payments do not include approximately $18.1 million for finance leases that had not yet commenced at December 31, 2020. We expect the lease commencement dates for these leases to occur in 2021. Operating lease costs in our consolidated statement of income for the year ended December 31, 2020 we re $147.0 million, including $108.4 million in selling, general and administrative expenses and $38.6 million in cost of services. Total lease costs for the year ended December 31, 2020 include variable lease costs of approximatel y $17.9 million, w hich are primarily comprised of the cost of property taxes, insurance and maintenance. Finance lease costs for the year ended December 31, 2020 wer e $16.3 million, including $14.6 million of amortization on right-of use assets and $1.6 million of interest on lease liabilities. Lease costs for leases with a term of less than 12 months were not material for the year ended December 31, 2020. Operating lease costs in our consolidated statement of income for the year ended December 31, 2019 were $85.9 million, including $71.0 million in selling, general and administrative expenses and $14.9 million in cost of services. Total lease costs for the year ended December 31, 2019 include variable lease costs of approximately $19.1 million, which are primarily comprised of the cost of property taxes, insurance and maintenance. Finance lease costs and lease costs for leases with a term of less than 12 months were not material for the year ended December 31, 2019. Cash paid for amounts included in the measurement of operating lease liabilities for the years ended December 31, 2020 and 2019 w as $117.7 million a nd $70.4 million, respectively, which are included as a component of cash provided by operating activities in the consolidated statement of cash flows. Operating lease liabilities arising from obtaining new or modified right-of-use assets, net of reductions resulting from certain lease modifications, were approximat ely $158.6 million an d $28.4 million for the years ended December 31, 2020 and 2019, respectively. Cash paid for amounts included in the measurement of finance lease liabilities that is included as a component of cash used in financing activities in the consolidated statement of cash flows was $11.2 million for the year ended December 31, 2020. Finance lease liabilities arising from obtaining new or modified right-of-use assets, net of reductions resulting from certain lease modifications, were approximately $51.3 million for the year ended December 31, 2020. Cash paid for finance lease liabilities and finance lease liabilities arising from obtaining new or modified right-of-use assets were not material for the year ended December 31, 2019. In connection with the Merger, we acquired right-of-use assets and assumed lease liabilities of $256.2 million and $272.0 million, respectively. Rent expense on all operating leases for the year ended December 31, 2018 was $47.1 million.
LEASES | LEASESOur leases consist primarily of operating real estate leases for office space and data centers in the markets in which we conduct business. We also have operating and finance leases for computer and other equipment. Many of our leases include escalating rental payments and incentives, as well as termination and renewal options. Certain of our lease agreements provide that we pay the cost of property taxes, insurance and maintenance. As described in "Note 1—Basis of Presentation and Summary of Significant Accounting Policies," we adopted ASU 2016-02 on January 1, 2019. Unless otherwise indicated, the following information in this footnote applies only to periods after December 31, 2018. As of December 31, 2020 and 2019, right-of-use assets and lease liabilities consisted of the following:
|  | Balance Sheet Location |  | December 31, 2020 |  | December 31, 2019
|  |  |  | (in thousands)
Assets: |  |  |  |  |  |
Operating lease right-of-use assets: |  |  |  |  |  |
Real estate |  | Other noncurrent assets |  | $ | 425,376 |  |  | $ | 355,063 |
Computer equipment |  | Other noncurrent assets |  | 54,959 |  |  | 80,427 |
Other |  | Other noncurrent assets |  | 862 |  |  | 1,310 |
Total operating lease right-of-use-assets |  |  |  | $ | 481,197 |  |  | $ | 436,800 |
Finance lease right-of-use assets: |  |  |  |  |  |
Computer equipment |  | Property and equipment, net |  | $ | 26,737 |  |  | $ | 21,901 |
Other equipment |  | Property and equipment, net |  | 45,560 |  |  | — |
Other |  | Property and equipment, net |  | 4,260 |  |  | 4,808 |
|  |  |  | 76,557 |  |  | 26,709 |
Less accumulated depreciation: |  |  |  |  |  |
Computer equipment |  | Property and equipment, net |  | (6,602) |  |  | (2,190) |
Other equipment |  | Property and equipment, net |  | (8,628) |  |  | — |
Other |  | Property and equipment, net |  | (869) |  |  | (234) |
Total accumulated depreciation |  |  |  | (16,099) |  |  | (2,424) |
Total finance lease right-of-use assets |  |  |  | 60,458 |  |  | 24,285 |
Total right-of-use assets(1) |  |  |  | $ | 541,655 |  |  | $ | 461,085 |
Liabilities: |  |  |  |  |  |
Operating lease liabilities (current) |  | Accounts payable and accrued liabilities |  | $ | 103,706 |  |  | $ | 88,812 |
Operating lease liabilities (noncurrent) |  | Other noncurrent liabilities |  | 448,016 |  |  | 397,488 |
Finance lease liabilities (current) |  | Current portion of long-term debt |  | 18,217 |  |  | 6,570 |
Finance lease liabilities (noncurrent) |  | Long-term debt |  | 57,772 |  |  | 26,426 |
Total lease liabilities |  |  |  | $ | 627,711 |  |  | $ | 519,296 |
(1) As of December 31, 2020 and 2019, approximately 72% and 82% of our right-of-use assets were located in the United States. The weighted-average remaining lease term for operating and finance leases at December 31, 2020 was 7.4 years and 4.3 years, respectively. The weighted-average remaining lease term for operating and finance leases at December 31, 2019 was 7.4 years and 5.1 years, respectively. As of December 31, 2020, the weighted-average discount rate used in the measurement of operating and finance lease liabilities was 3.5% and 3.3%, respectively. As of December 31, 2019, the weighted-average discount rate used in the measurement of operating and finance lease liabilities was 4.1% and 2.8%, respectively. As of December 31, 2020, maturities of lease liabilities were as follows:
|  | Operating Leases |  | Finance Leases
|  | (in thousands)
Year ending December 31, |  |  |  |
2021 |  | $ | 122,002 |  |  | $ | 25,841 |
2022 |  | 107,349 |  |  | 18,950 |
2023 |  | 76,127 |  |  | 17,346 |
2024 |  | 66,309 |  |  | 15,682 |
2025 |  | 56,508 |  |  | 2,834 |
2026 and thereafter |  | 204,895 |  |  | — |
Total lease payments(1) |  | 633,190 |  |  | 80,653 |
Imputed interest |  | (81,468) |  |  | (4,664) |
Total lease liabilities |  | $ | 551,722 |  |  | $ | 75,989 |
(1) Total operating lease payments do not include approximately $147.5 million for operating leases that had not yet commenced at December 31, 2020. Total finance lease payments do not include approximately $18.1 million for finance leases that had not yet commenced at December 31, 2020. We expect the lease commencement dates for these leases to occur in 2021. Operating lease costs in our consolidated statement of income for the year ended December 31, 2020 we re $147.0 million, including $108.4 million in selling, general and administrative expenses and $38.6 million in cost of services. Total lease costs for the year ended December 31, 2020 include variable lease costs of approximatel y $17.9 million, w hich are primarily comprised of the cost of property taxes, insurance and maintenance. Finance lease costs for the year ended December 31, 2020 wer e $16.3 million, including $14.6 million of amortization on right-of use assets and $1.6 million of interest on lease liabilities. Lease costs for leases with a term of less than 12 months were not material for the year ended December 31, 2020. Operating lease costs in our consolidated statement of income for the year ended December 31, 2019 were $85.9 million, including $71.0 million in selling, general and administrative expenses and $14.9 million in cost of services. Total lease costs for the year ended December 31, 2019 include variable lease costs of approximately $19.1 million, which are primarily comprised of the cost of property taxes, insurance and maintenance. Finance lease costs and lease costs for leases with a term of less than 12 months were not material for the year ended December 31, 2019. Cash paid for amounts included in the measurement of operating lease liabilities for the years ended December 31, 2020 and 2019 w as $117.7 million a nd $70.4 million, respectively, which are included as a component of cash provided by operating activities in the consolidated statement of cash flows. Operating lease liabilities arising from obtaining new or modified right-of-use assets, net of reductions resulting from certain lease modifications, were approximat ely $158.6 million an d $28.4 million for the years ended December 31, 2020 and 2019, respectively. Cash paid for amounts included in the measurement of finance lease liabilities that is included as a component of cash used in financing activities in the consolidated statement of cash flows was $11.2 million for the year ended December 31, 2020. Finance lease liabilities arising from obtaining new or modified right-of-use assets, net of reductions resulting from certain lease modifications, were approximately $51.3 million for the year ended December 31, 2020. Cash paid for finance lease liabilities and finance lease liabilities arising from obtaining new or modified right-of-use assets were not material for the year ended December 31, 2019. In connection with the Merger, we acquired right-of-use assets and assumed lease liabilities of $256.2 million and $272.0 million, respectively. Rent expense on all operating leases for the year ended December 31, 2018 was $47.1 million.

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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