Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

LeasesWe primarily have operating leases for office space included in our ROU assets and lease liabilities. Our executive offices and those related to certain domestic product development, marketing, production and administration are located in a 186,000 square foot office facility in Canonsburg, Pennsylvania. The term of the lease is 183 months, which began on October 1, 2014 and expires on December 31, 2029. The lease agreement includes options to renew the contract through August 2044, an option to lease additional space in January 2025 and an option to terminate the lease in December 2025. No options are included in the

lease liability as renewal is not reasonably certain. In addition, we are reasonably certain we will not terminate the lease agreement. Absent the exercise of options in the lease, our remaining base rent (inclusive of property taxes and certain operating costs) is $4.5 million per annum through 2024 and $4.7 million per annum for 2025 - 2029.

The components of our global lease cost reflected in the consolidated statements of income for the years ended December 31, 2020 and 2019 are as follows:

(in thousands)	2020		2019
Lease liability cost	$	24,818	$	22,507
Variable lease cost not included in the lease liability(1)	5,067		3,754
Total lease cost	$	29,885	$	26,261

(1) Variable lease cost includes common area maintenance, property taxes, utilities and fluctuations in rent due to a change in an index or rate.

For the year ended December 31, 2018, lease cost totaled $21.3 million.

Other information related to operating leases for the years ended December 31, 2020 and 2019 is as follows:

(in thousands)	2020		2019
Cash paid for amounts included in the measurement of the lease liability:
Operating cash flows from operating leases	$	(22,470)	$	(20,031)
Right-of-use assets obtained in exchange for new operating lease liabilities	$	48,248	$	35,191

	As of December 31,
	2020		2019
Weighted-average remaining lease term of operating leases	7.3 years		7.7 years
Weighted-average discount rate of operating leases	2.9	%	3.7	%

The maturity schedule of the operating lease liabilities as of December 31, 2020 is as follows:

(in thousands)
2021	$	27,311
2022	24,712
2023	21,522
2024	20,264
2025	17,076
Thereafter	50,438
Total future lease payments	161,323
Less: Present value adjustment	(16,792)
Present value of future lease payments(1)	$	144,531

(1)Includes the current portion of operating lease liabilities of $23.6 million, which is reflected in other accrued expenses and liabilities in the consolidated balance sheets.

There were no material leases that have been signed but not yet commenced as of December 31, 2020.