Leases

12 Months Ended

Dec. 31, 2020

LeasesThe 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 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):


	Years Ended December 31,
	2020		2019
Operating lease cost	$	25,148	$	18,486
Variable lease cost	3,588		3,756
Sublease income	(134)		(528)
Total lease cost	$	28,602	$	21,714

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


	Years Ended December 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	18,827	$	19,578
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	11,431	$	10,478

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


	December 31,
	2020			2019
Assets:
Operating lease right-of-use assets	$	41,243		$	57,382
Liabilities:
Other current liabilities	$	13,438		$	15,049
Operating lease liabilities	39,958			46,766
Total operating lease liabilities	$	53,396		$	61,815
Weighted average remaining operating lease term (years)	6.01			6.58
Weighted average operating lease discount rate	3.67		%	4.00		%

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 December 31, 2020, are as follows (in thousands):


Fiscal Year Ending December 31,
2021	$	15,116
2022	12,991
2023	10,436
2024	5,545
2025	4,016
Thereafter	11,573
Total lease payments	59,677
Less: imputed interest	6,281
Total lease liability	$	53,396