Leases

12 Months Ended

Dec. 31, 2020

We lease office space and equipment under non-cancelable operating leases. We recognize operating lease expense on a straight-line basis over the lease term, which may include renewal or termination options that are reasonably certain of exercise. Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets and are expensed on a straight-line basis. Most leases include one or more options to renew, with renewal terms that can extend the lease term from six months to seven years. The exercise of lease renewal options is at our sole discretion. Certain of our lease agreements include rental payments that are adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The table below summarizes the carrying amount of our operating lease assets and liabilities:


		December 31,
Leases	Classification	2020		2019
Assets
Operating lease assets	Operating lease assets	$	156,645	$	159,777
Total lease assets		$	156,645	$	159,777
Liabilities
Current
Operating lease liabilities	Accounts payable, accrued expenses and other	$	42,716	$	35,727
Noncurrent
Operating lease liabilities	Noncurrent operating lease liabilities	161,677		176,378
Total lease liabilities		$	204,393	$	212,105

The table below summarizes total lease costs:


	Year Ended December 31,
Lease Cost	2020		2019
Operating lease costs	$	51,764	$	45,144
Short-term lease costs	2,476		3,173
Variable lease costs	12,986		11,962
Sublease income	(4,226)		(5,015)
Total lease cost, net	$	63,000	$	55,264

We sublease certain of our leased office spaces to third parties. Our sublease portfolio consists of leases of office space that we have vacated before the lease term expiration. Operating lease expense on vacated office space is reduced by sublease rental income, which is recorded to SG&A expenses on the Consolidated Statements of Comprehensive Income. Our sublease arrangements do not contain renewal options or restrictive covenants. We estimate future sublease rental income to be $4.6 million in 2021, $0.8 million in 2022, $0.6 million in 2023, $0.6 million in 2024 and $0.3 million in 2025. There is no future sublease rental income estimated for the years beyond 2025.

The maturity analysis below summarizes the remaining future undiscounted cash flows for our operating leases and includes a reconciliation to operating lease liabilities reported on the Consolidated Balance Sheets:


	As of December 31, 2020
2021	$	49,666
2022	41,055
2023	34,434
2024	29,688
2025	24,700
Thereafter	63,943
Total future lease payments	243,486
Less: imputed interest	(39,093)
Total	$	204,393

The table below includes cash paid for our operating lease liabilities, other non-cash information, our weighted average remaining lease term and weighted average discount rate:


	Year Ended December 31,
	2020			2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	56,075		$	46,079

Operating lease assets obtained in exchange for lease liabilities	$	32,759		$	37,774

Weighted average remaining lease term (years)
Operating leases	6.7			6.5

Weighted average discount rate
Operating leases	5.4		%	5.6		%

On October 26, 2020, the Company entered into a material lease agreement, amending and restating the lease agreement entered into as of August 19, 2020 (the "Lease") for its new principal office space in New York, New York. The Company expects to accept possession of the premises on or about April 1, 2021, subject to the satisfaction of certain conditions. The Lease shall continue for an initial fixed term of 15 years, subject to two renewal options of five years each. Fixed rental payments under the Lease are scheduled to commence in April 2022, payable in monthly installments, and will aggregate approximately $145 million, excluding lease-related incentives over the term of the Lease. The Lease is not included in operating lease assets and operating lease liabilities on the Consolidated Balance Sheets as of December 31, 2020 as the Company does not yet have the right to use the premises.