LEASES

9 Months Ended

Sep. 30, 2021

7. LEASES

The Company has operating leases for general office properties, warehouses, data centers, customer care centers, automobiles and certain equipment. As of September 30, 2021, the Company’s leases have remaining lease terms of less than 1 year to 12 years, some of which may include renewal options. For leases in which the implicit rate is not readily determinable, the Company uses its incremental borrowing rate as of the lease commencement date to determine the present value of the lease payments. The incremental borrowing rate is based on the Company’s specific rate of interest to borrow on a collateralized basis, over a similar term and in a similar economic environment as the lease.

Leases with an initial term of 12 months or less are not recognized on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Additionally, the Company accounts for lease and nonlease components as a single lease component for its identified asset classes.

The components of lease expense were as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020

	(in thousands)
Operating lease cost	$	3,923	$	3,898	$	11,929	$	11,624
Short-term lease cost		84		107		255		354
Variable lease cost		922		949		3,134		3,143
Total	$	4,929	$	4,954	$	15,318	$	15,121

Other information related to leases was as follows:


	September 30,		September 30,
	2021		2020
Weighted-average remaining lease term (in years):
Operating leases	10.9		11.6
Weighted-average discount rate:
Operating leases	4.7	%	4.6	%

Supplemental cash flow information related to leases was as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020

	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,062	$	5,441	$	13,871	$	13,527
Right of use assets obtained in exchange for lease obligations:
Operating leases	$	16	$	462	$	200	$	3,021

Maturities of the lease liabilities as of September 30, 2021 were as follows:


	Operating
Year	Leases
	(in thousands)
2021 (excluding the nine months ended September 30, 2021)	$	2,798
2022		15,782
2023		14,375
2024		13,472
2025		12,935
Thereafter		90,545
Total undiscounted lease liabilities		149,907
Less: Amount representing interest		(33,606)
Total present value of minimum lease payments	$	116,301

Amounts recognized in the September 30, 2021 combined balance sheet:
Current operating lease liabilities	$	9,626
Long-term operating lease liabilities		106,675
Total	$	116,301