| Leases |
8. LEASES
The Company’s operating leases are primarily for office real estate. The leases have remaining lease terms ranging from one year to 11 years and may include options to extend or terminate.
The components of lease expense are as follows (in thousands):
|
|
|
Three Months Ended |
|
|
|
|
March 31, 2020 |
|
|
March 31, 2019 |
|
|
Operating lease cost |
|
$ |
13,003 |
|
|
$ |
4,332 |
|
|
Sublease income |
|
|
(786 |
) |
|
|
(580 |
) |
|
Net operating lease cost |
|
$ |
12,217 |
|
|
$ |
3,752 |
|
Supplemental cash flow information related to leases is as follows (in thousands):
|
|
|
Three Months Ended |
|
|
|
|
March 31, 2020 |
|
|
March 31, 2019 |
|
|
Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
|
|
|
Operating cash outflows from operating leases |
|
$ |
9,451 |
|
|
$ |
3,866 |
|
|
Right-of-use assets obtained in exchange for lease obligations: |
|
|
|
|
|
|
|
|
|
Operating leases |
|
$ |
(795 |
) |
|
$ |
34,534 |
|
Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate):
|
|
|
As of |
|
|
|
|
March 31, 2020 |
|
|
December 31, 2019 |
|
|
Operating lease right-of-use assets |
|
$ |
273,305 |
|
|
$ |
283,291 |
|
|
Included in accounts payable and accrued liabilities: |
|
|
|
|
|
|
|
|
|
Operating lease liability, current |
|
|
19,709 |
|
|
|
17,896 |
|
|
Operating lease liability, non-current |
|
|
312,628 |
|
|
|
301,694 |
|
|
Total operating lease liability |
|
$ |
332,337 |
|
|
$ |
319,590 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Remaining Lease Term |
|
|
|
|
|
|
|
|
|
Operating leases (in years) |
|
9.85 |
|
|
9.98 |
|
|
Weighted Average Discount Rate |
|
|
|
|
|
|
|
|
|
Operating leases |
|
|
4.66 |
% |
|
|
4.65 |
% |
Future lease payments under operating leases as of March 31, 2020 were as follows (in thousands):
|
Year ending December 31, |
|
Operating
Leases |
|
|
2020 (remaining 9 months) |
|
$ |
19,826 |
|
|
2021 |
|
|
47,173 |
|
|
2022 |
|
|
44,051 |
|
|
2023 |
|
|
44,802 |
|
|
2024 |
|
|
44,211 |
|
|
Thereafter |
|
|
245,862 |
|
|
Total future lease payments |
|
|
445,925 |
|
|
Less: imputed interest |
|
|
(91,776 |
) |
|
Less: expected tenant improvement allowance |
|
|
(21,812 |
) |
|
Total |
|
$ |
332,337 |
|
As of March 31, 2020, the Company has additional operating leases, primarily corporate offices, that have not yet commenced of $12.8 million. These operating leases will commence in fiscal year 2020 with lease terms of four years to eleven years.
|