v3.19.3.a.u2

Leases | 12 Months Ended
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Dec. 31, 2019
Leases [Abstract] |
Leases | 9. LEASES The Company determines if an arrangement contains a lease at its inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, accrued liabilities, and operating lease liability in our consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future lease payments. The Company took into consideration its credit rating and the length of the lease when calculating the incremental borrowing rate. The Company considers the options to extend or terminate the lease in determining the lease term, when it is reasonably certain to exercise one of the options. The Company combines lease and non-lease components into a single lease component for its real estate and equipment leases. The Company has entered into operating leases primarily for office real estate. The leases have remaining terms ranging from one year to 11 years and may include options to extend or terminate the lease. The depreciable life of ROU assets is limited by the expected lease term. The Company earns sublease income from subleases for a portion of the former headquarters in Saratoga, California. The subleases expire in 2020 when the underlying leases expire. The components of lease expense are as follows (in thousands):
|  | Year Ended |
|  | December 31, 2019 |
Operating lease cost |  | $ | 30,218 |
Sublease income |  |  | (2,622 | )
Net operating lease cost |  | $ | 27,596 |
Supplemental cash flow information related to leases is as follows (in thousands):
|  | Year Ended |
|  | December 31, 2019 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash outflows from operating leases |  | $ | 17,721 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |
Operating leases |  | $ | 267,048 |
Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate):
|  | As of |
|  | December 31, 2019 |
Operating lease right-of-use assets |  | $ | 283,291 |
Included in accounts payable and accrued liabilities: |  |  |  |
Operating lease liability, current |  |  | 17,896 |
Operating lease liability, non-current |  |  | 301,694 |
Total operating lease liability |  | $ | 319,590 |
Weighted Average Remaining Lease Term: |  |  |  |
Operating leases (in years) |  | 9.98 |
Weighted Average Discount Rate: |  |  |  |
Operating leases |  |  | 4.65 | %
Future lease payments under operating leases as of December 31, 2019 were as follows (in thousands):
Year Ending December 31, |  | Operating Leases |
2020 |  | $ | 29,230 |
2021 |  |  | 47,035 |
2022 |  |  | 43,909 |
2023 |  |  | 44,655 |
2024 |  |  | 44,014 |
Thereafter |  |  | 246,488 |
Total future lease payments |  |  | 455,331 |
Less: imputed interest |  |  | (95,762 | )
Less: expected tenant improvement allowance |  |  | (39,979 | )
Total |  | $ | 319,590 |
As of December 31, 2019, the Company has additional operating leases, primarily corporate offices, that have not yet commenced of $6.6 million. These operating leases will commence in fiscal year 2020 with lease terms of 5 years to 11 years. The following table summarizes the future minimum lease payments due under operating leases as of December 31, 2018 and reflect the application of the prior lease standard (ASC 840, Leases). These amounts were disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (in thousands):
Year Ending December 31, |  | Operating Leases |
2019 |  | $ | 16,817 |
2020 |  |  | 29,124 |
2021 |  |  | 32,034 |
2022 |  |  | 32,844 |
2023 |  |  | 33,414 |
Thereafter |  |  | 223,472 |
Less: sublease income |  |  | (3,711 | )
Total |  | $ | 363,994 |
Rent expense, under ASC 840, for the years ended December 31, 2018 and 2017 was $9.7 million and $6.9 million, respectively.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating 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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