Leases

9 Months Ended

Sep. 30, 2019

The Company has operating leases for corporate offices and data centers. Excluding office leases, leases with an initial term of 12 months or less that do not include an option to purchase the underlying asset are not recorded on the condensed consolidated balance sheet and are expensed on a straight-line basis over the lease term.

The Company’s leases typically include certain renewal options to extend the leases for up to 25 years, some of which include options to terminate the leases within one year. The exercise of lease renewal options is at the Company’s sole discretion. The Company combines lease and non-lease components of its leases and currently has no leases with options to purchase the leased property. Payments of maintenance and property tax costs paid by the Company are accounted for as variable lease cost, which are expensed as incurred.

The components of lease cost are as follows (in thousands):



	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
Operating lease cost	$	4,491		$	12,814
Variable lease cost	966			2,712
Sublease income	(105		)	(385		)
Total lease cost	$	5,352		$	15,141

Supplemental cash flow information related to leases is as follows (in thousands):



	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,622	$	14,882
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	2,718	$	8,920

Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate):



	September 30, 2019
Assets:
Operating lease right-of-use assets	$	60,280
Liabilities:
Other current liabilities	$	15,112
Operating lease liabilities	48,281
Total operating lease liabilities	$	63,393
Weighted average remaining operating lease term (years)	6.59
Weighted average operating lease discount rate	4.03		%

The Company uses its incremental borrowing rate as the discount rate. As the Company enters into operating leases in multiple jurisdictions and denominated in currencies other than the U.S. dollar, judgment is used to determine the Company’s incremental borrowing rate including (1) conversion of its subordinated borrowing rate (using published yield curves) to an unsubordinated and collateralized rate, (2) adjusting the rate to align with the term of each lease, and (3) adjusting the rate to incorporate the effects of the currency in which the lease is denominated.

Maturities on lease liabilities as of September 30, 2019, are as follows (in thousands):



Fiscal Year Ending December 31,
Remainder of 2019	$	4,060
2020	17,153
2021	12,565
2022	9,649
2023	7,455
Thereafter	21,351
Total lease payments	72,233
Less: imputed interest	8,840
Total lease liability	$	63,393

Future payments under operating lease agreements accounted for under ASC 840, Leases, as of December 31, 2018, were as follows (in thousands):



Fiscal Year Ending December 31,
2019	$	16,925
2020	14,212
2021	10,538
2022	8,178
2023	6,529
Thereafter	21,196
Total minimum lease payments	$	77,578

As of September 30, 2019, the Company has additional operating leases for office facilities that have not yet commenced with minimum lease payments of $2.8 million. These operating leases will commence between fiscal year 2019 and 2020 with lease terms of one to seven years.