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Leases
12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases

2. Leases

Amounts reported in the Consolidated Balance Sheets as of December 31, 2020 and 2019 for our operating leases were as follows:

 

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

(Amounts in Thousands)

 

Operating lease assets, net

 

$

37,991

 

 

$

21,111

 

 

 

 

 

 

 

 

 

 

Short-term operating lease liabilities (in accrued expenses)

 

 

9,283

 

 

 

7,234

 

Long-term operating lease liabilities

 

 

35,516

 

 

 

14,301

 

Total operating lease liabilities

 

$

44,799

 

 

$

21,535

 

 

The Company signed an eleven-year lease agreement to expand its Frisco corporate headquarters by approximately 75,000 square feet which resulted in an increase in the operating lease asset, net, and operating lease liability by approximately $17.0 million and $22.6 million, respectively, as of December 31, 2020. Approximately 21,000 square feet and 12,000 square feet of our office space in Downers Grove and Frisco, respectively, are sublet to a third party.

Lease Costs

Components of lease cost were reported in general and administrative expenses in the Consolidated Statements of Income as follows:

 

 

 

For the Years Ended December 31,

 

 

 

(Amounts in Thousands)

 

 

 

2020

 

 

2019

 

Operating lease costs

 

$

9,197

 

 

$

7,219

 

Short-term lease costs

 

 

761

 

 

 

585

 

Less: sublease income

 

 

(323

)

 

 

(312

)

Total lease cost, net

 

$

9,635

 

 

$

7,492

 

 

Lease Term and Discount Rate

Weighted average remaining lease terms and discount rates for the years ended December 31, 2020 and 2019 were as follows:

 

 

 

2020

 

 

2019

 

Operating leases:

 

 

 

 

 

 

 

 

Weighted average remaining lease term

 

 

6.97

 

 

 

3.42

 

Weighted average discount rate

 

 

4.18

%

 

 

5.14

%

 

Maturity of Lease Liabilities

A summary of our remaining operating lease payments as of December 31, 2020 were as follows:

 

 

 

Operating Leases

 

 

 

(Amounts in Thousands)

 

Due in 12-month period ended December 31,

 

 

 

 

2021

 

$

10,681

 

2022

 

 

9,007

 

2023

 

 

6,977

 

2024

 

 

5,231

 

2025

 

 

3,521

 

Thereafter

 

 

16,514

 

Total future minimum rental commitments

 

 

51,931

 

Less: Imputed interest

 

 

(7,132

)

Total lease liabilities

 

$

44,799

 

Supplemental cash flows information

 

 

 

For the Years Ended December 31,

 

 

 

(Amounts in Thousands)

 

 

 

 

2020

 

 

 

2019

 

Supplemental Cash Flows Information

 

 

 

 

 

 

 

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

8,769

 

 

$

7,574

 

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for lease obligations:

 

 

 

 

 

 

 

 

Operating leases

 

$

25,807

 

 

$

10,299

 

 

Comparative Disclosure Prior to the Adoption of the New Lease Accounting Standard (ASU 2016-02)

Aggregate rental expense for all operating leases amounted to $6.0 million for the year ended December 31, 2018. During the year ended December 31, 2018, we recognized sublease income of $0.3 million related to our leased space in Downers Grove.

Financing Leases

Some of our financing leases include provisions to purchase the asset at the conclusion of the lease. The adoption of ASC 842 did not impact the accounting for these leases. Financing leases were not material as of December 31, 2020 and 2019.