Leases

12 Months Ended

Dec. 31, 2019

On January 1, 2019, we adopted the new leases guidance and recorded an immaterial decrease to our opening balance of accumulated deficit. Results for reporting periods beginning January 1, 2019 are presented under the new guidance, while prior period amounts were not adjusted and continue to be reported in accordance with the previous guidance. We initially recorded ROU assets of $17.2 million and lease liabilities of $21.1 million on our consolidated balance sheet. ASC 842 did not have a material impact to our consolidated statements of operations. We elected a package of transition practical expedients which included not reassessing whether any expired or existing contracts are or contained leases, not reassessing the lease classification of expired or existing leases, and not reassessing initial direct costs for existing leases. We also elected a practical expedient to not separate lease and non-lease components. We did not elect the practical expedient to use hindsight in determining our lease terms or assessing impairment of our ROU assets.

We have operating leases for corporate offices worldwide, which expire at various dates through 2024. Our primary operating lease commitments at December 31, 2019 are related to our corporate headquarters in Santa Clara, California. We have additional offices in California, Oregon, and New York in the United States and internationally in India and Israel. As of December 31, 2019, we had operating lease ROU assets of $15.9 million and operating lease liabilities of $19.8 million. During the year ended December 31, 2019, we obtained $3.4 million of ROU assets in exchange for lease liabilities related to the reassessment of the lease term for two of our leases in India and commencing a lease for an additional office space in India.

As of December 31, 2019, we do not have finance leases recorded on our consolidated balance sheet. As of December 31, 2019, our weighted average remaining lease term was 3.7 years. During the year ended December 31, 2019, our weighted average discount rate was 4.7%. Operating lease expense, net of immaterial sublease income, was approximately $5.0 million during the year ended December 31, 2019. Variable lease cost and short term lease cost were immaterial during the year ended December 31, 2019.

The aggregate future minimum lease payments and reconciliation to lease liabilities as of December 31, 2019, are as follows (in thousands):



	December 31, 2019
2020	$	6,094
2021	5,622
2022	5,404
2023	3,738
2024	780
Total future minimum lease payments	21,638
Less imputed interest	(1,842		)
Total lease liabilities	$	19,796

The aggregate future minimum lease payments as of December 31, 2018, are as follows (in thousands):



	December 31, 2018
2019	$	5,222
2020	5,251
2021	4,775
2022	3,999
2023	3,421
Thereafter	788
Total	$	23,456

During the year ended December 31, 2019, we entered into a seven years lease for a corporate office in New York with future minimum lease payments of approximately $12.4 million. As of December 31, 2019, this lease has not yet commenced and therefore these future minimum lease payments are not included in our future minimum lease payments in the above table.