Leases

6 Months Ended

Jun. 30, 2021

Operating leases for our corporate offices have remaining lease terms ranging from one to eleven years, some of which include options to extend the leases for up to ten years. These options to extend have not been recognized as part of our operating lease right-of-use assets and lease liabilities as it is not reasonably certain that we will exercise these options. Our lease agreements do not contain any residual value guarantees or material restrictive covenants. We have lease agreements with lease and non-lease components, which we have elected to combine for all asset classes. Certain leases contain provisions for property-related costs that are variable in nature for which the Company is responsible, including common area maintenance, which are expensed as incurred.

The components of lease expense recognized in the Condensed Consolidated Statements of Operations were as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Operating lease cost	$	1,202	$	1,412	$	2,297	$	2,848
Variable lease cost	394		399		700		792
Total lease cost	$	1,596	$	1,811	$	2,997	$	3,640

Lease-related assets and liabilities were as follows as of June 30, 2021 and December 31, 2020 (in thousands):


	June 30, 2021		December 31, 2020
Assets
Prepaid expenses and other current assets	$	6,599	$	3,972
Operating lease right-of-use assets	40,983		30,561

Liabilities
Other current liabilities	$	1,561	$	1,845
Operating lease liabilities	53,936		40,146
Total lease liabilities	$	55,497	$	41,991

Future minimum lease payments under non-cancellable leases as of June 30, 2021 were as follows (in thousands):


Years ending December 31,
2021(1)	$	(4,645)
2022(1)	4,022
2023(1)	4,850
2024(1)	5,814
2025	6,481
Thereafter	46,783
Total future minimum lease payments	63,305
Less: imputed interest	(14,407)
Total(2)	$	48,898

(1) Future minimum lease payments for the years ending December 31, 2021, 2022, 2023, and 2024 are presented net of tenant improvement allowances of $6.9 million, $0.6 million, $0.8 million, and $0.2 million, respectively.

(2) Total future minimum lease payments include the current portion of lease liabilities recorded in Prepaid expenses and other current assets of $6.6 million on our Condensed Consolidated Balance Sheets, which relates to certain of our leases for which the lease incentives to be received exceed the minimum lease payments to be paid over the next 12 months.