LEASES

12 Months Ended

Dec. 31, 2020

The Company leases office space, data center facilities and equipment in connection with its operations under various operating leases, the majority of which contain escalation clauses.

ROU assets represent the Company’s right to use the underlying assets for the lease term and lease liabilities represent the present value of the Company’s obligation to make payments arising from these leases. ROU assets and related lease liabilities are based on the present value of fixed lease payments over the lease term using the Company’s incremental borrowing rate on the lease commencement date or January 1, 2019 for leases that commenced prior to that date. The Company combines the lease and non-lease components of lease payments in determining ROU assets and related lease liabilities. If the lease includes one or more options to extend the term of the lease, the renewal option is considered in the lease term if it is reasonably certain the Company will exercise the option(s). Lease expense is recognized on a straight-line basis over the term of the lease. As permitted by ASC 842, leases with an initial term of twelve months or less (“short-term leases”) are not recorded on the accompanying consolidated balance sheet.

Variable lease payments consist primarily of common area maintenance, utilities and taxes, which are not included in the recognition of ROU assets and related lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.


		December 31,
Leases	Balance Sheet Classification	2020		2019
		(In thousands)
Assets:
Right-of-use assets	Other non-current assets	$	87,559	$	101,243

Liabilities:
Current lease liabilities	Accrued expenses and other current liabilities	15,700		13,234
Long-term lease liabilities	Other long-term liabilities	103,575		119,375
Total lease liabilities		$	119,275	$	132,609


		December 31,
Lease Cost	Income Statement Classification	2020		2019
		(In thousands)
Fixed lease cost	Cost of revenue	$	321	$	207
Fixed lease cost	Selling and marketing expense	9,913		9,277
Fixed lease cost	General and administrative expense	7,545		7,617
Fixed lease cost	Product development expense	1,848		1,456
Total fixed lease cost(a)		19,627		18,557
Variable lease cost	Cost of revenue	—		—
Variable lease cost	Selling and marketing expense	2,314		1,572
Variable lease cost	General and administrative expense	1,567		1,021
Variable lease cost	Product development expense	867		308
Total variable lease cost		4,748		2,901
Net lease cost		$	24,375	$	21,458

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(a) Includes $0.04 million and $0.6 million of short-term lease cost and $1.8 million and $1.4 million of sublease income for the years ended December 31, 2020 and 2019, respectively.

Maturities of lease liabilities as of December 31, 2020(b):


For Years Ending December 31:	(In thousands)
2021	$	22,321
2022	21,514
2023	20,512
2024	19,994
2025	19,193
Thereafter	43,376
Total	146,910
Less: Interest	27,635
Present value of lease liabilities	$	119,275

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(b) Lease payments exclude $0.1 million of legally binding minimum lease payments for leases signed but not yet commenced.

The following are the weighted average assumptions used for lease terms and discount rates as of December 31, 2020 and 2019:


	December 31,
	2020		2019
Remaining lease term	6.9 years		7.7 years
Discount rate	5.91	%	5.99	%


	December 31,
	2020		2019
	(In thousands)
Other information:
Right-of-use assets obtained in exchange for lease liabilities	$	326	$	58,701
Cash paid for amounts included in the measurement of lease liabilities	$	20,939	$	18,363