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Leases | 12 Months Ended
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Dec. 31, 2020
Leases [Abstract] |
Leases | Leases J2 Global leases certain facilities and equipment under non-cancelable operating and finance leases which expire at various dates through 2031. Office and equipment leases are typically for terms of three to five years and generally provide renewal options for terms up to an additional five years. Some of the Company’s leases include options to terminate within one year. During 2020, the Company decided to exit and seek subleases for certain leased facilities in the Digital Media reportable segment primarily due to a permanent “remote” or “partial remote” work model for a significant number of employees arising from the COVID-19 pandemic. The Company recorded a non-cash impairment charge of $12.1 million related to operating lease right-of-use assets for the affected facilities and an impairment charge of $3.6 million for associated property and equipment. The impairment was determined by comparing the fair value of the impacted right-of-use asset to the carrying value of the asset as of the impairment measurement date, as required under ASC Topic 360, Property, Plant, and Equipment. The fair value of the right-of-use asset was based on the estimated sublease income for the affected facilities taking into consideration the time it will take to obtain a sublease tenant, the applicable discount rate and the sublease rate which represents Level 3 unobservable inputs. The impairment is presented in general and administrative expenses on the Consolidated Statements of Operations. No impairment was recorded in 2019 or 2018. In certain agreements in which the Company leases office space where the Company is the tenant, it subleases the site to various other companies through a sublease agreement. The Company adopted the new lease standard and related amendments as of January 1, 2019 using the optional transition method. Results for reporting periods beginning after the adoption date are presented under Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under ASC 840. Finance leases are not material to the Company’s consolidated financial statements and are therefore not included in the disclosures. Upon adoption of ASC 842, the Company recorded approximately $72.0 million of right-of-use assets and approximately $75.0 million of operating lease liabilities. The components of lease expense, recorded in cost of revenues and general and administrative expenses on the Consolidated Statements of Operations, were as follows for the year ended (in thousands):
| Years ended December 31,
| 2020 |  | 2019
Operating lease cost | $ | 42,025 |  |  | $ | 23,681 |
Short-term lease cost | 1,807 |  |  | 1,918 |
Total lease cost | $ | 43,832 |  |  | $ | 25,599 |
Supplemental balance sheet information related to leases was as follows (in thousands):
| December 31, 2020 |  | December 31, 2019
Operating leases |  |  |
Operating lease right-of-use assets | $ | 105,845 |  |  | $ | 125,822 |
Total operating lease right-of-use assets | $ | 105,845 |  |  | $ | 125,822 |
Operating lease liability, current | $ | 32,211 |  |  | $ | 26,927 |
Operating lease liabilities, noncurrent | 99,177 |  |  | 104,070 |
Total operating lease liabilities | $ | 131,388 |  |  | $ | 130,997 |
Supplemental cash flow information related to leases was 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 | $ | 28,677 |  |  | $ | 24,750 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |
Operating leases | $ | 31,669 |  |  | $ | 73,163 |
Other supplemental operating lease information consists of the following:
| December 31, 2020 |  | December 31, 2019
Operating leases: |  |  |
Weighted average remaining lease term | 5.2 years |  | 5.9 years
Weighted average discount rate | 3.93 | % |  | 3.95 | %
Maturities of operating lease liabilities as of December 31, 2020 were as follows (in thousands):
| Operating Leases |  |
Fiscal Year: |  |  |
2021 | $ | 34,636 |  |  |
2022 | 32,137 |  |  |
2023 | 26,255 |  |  |
2024 | 18,288 |  |  |
2025 | 9,843 |  |  |
Thereafter | 38,447 |  |  |
Total lease payments | $ | 159,606 |  |  |
Less: Imputed interest | (28,218) |  |  |
Present value of operating lease liabilities | $ | 131,388 |  |  |
Rental expense for operating leases classified under ASC 840 for the year ended December 31, 2018 was $21.0 million and was predominantly recorded within general and administrative expenses. Sublease Total sublease income for the years ended December 31, 2020, 2019 and 2018 was $2.6 million, $3.5 million and $2.8 million, respectively. Total estimated aggregate sublease income to be received in the future is $4.5 million. In 2020, the Company recorded $2.1 million of impairment associated with one of its sublease tenants in default as a result of the economic effects of COVID-19. The impairment is presented in general and administrative expenses on the Consolidated Statement of Operations. Significant Judgments Discount Rate The majority of the J2 Global’s leases are discounted using the Company’s incremental borrowing rate as the rate implicit in the lease is not readily determinable. Rates are obtained from various large banks to determine the appropriate incremental borrowing rate each quarter for collateralized loans with a maturity similar to the lease term. Options The lease term is generally the minimum noncancelable period of the lease. The Company does not include option periods unless the Company determined it is reasonably certain of exercising the option at inception or when a triggering event occurs. Practical Expedients As a practical expedient, the Company has not separated lease components from nonlease components for its real property operating leases. Certain of the Company’s leases contain nonlease components such as maintenance and certain utility costs. In addition, the Company elected and applied the available transition practical expedients upon adoption. By electing these practical expedients, the Company did: •not reassess whether expired or existing contracts contain leases under the new definition of a lease; •not reassess lease classification for expired or existing leases; and •not reassess whether previously capitalized initial direct costs would qualify for capitalization under Topic 842.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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