Leases

12 Months Ended

Dec. 31, 2020

The Company has entered into various operating lease agreements for its offices and co-location assets and related equipment. The Company has also entered into sublease agreements with tenants of various offices previously vacated by the Company. These operating leases have lease periods expiring between 2021 and 2034. The following table is a summary of the Company’s operating lease costs for the years ended December 31, 2020 and 2019 (in thousands):


	December 31, 2020						December 31, 2019
	Real Estate Arrangements		Co-location Arrangements		Total		Real Estate Arrangements		Co-location Arrangements		Total
Operating lease cost	$	83,574	$	113,554	$	197,128	$	63,893	$	96,020	$	159,913
Short-term lease cost	229		15,620		15,849		111		14,301		14,412
Variable lease cost	21,235		34,259		55,494		15,610		23,524		39,134
Sublease income	(22,064)		—		(22,064)		(5,119)		—		(5,119)
Total operating lease costs	$	82,974	$	163,433	$	246,407	$	74,495	$	133,845	$	208,340

Real estate rent expense and sublease income for the year ended December 31, 2018 were $63.2 million and $3.8 million, respectively. Lease costs for real estate arrangements are included in general and administrative expenses in the consolidated statements of income. Lease costs for co-location arrangements are primarily included in cost of revenue.

At December 31, 2020 and 2019, the real estate arrangements' weighted average remaining lease term was 11.8 years and 12.8 years, respectively, and the weighted average discount rate for operating leases was 3.4% and 3.5%, respectively. At December 31, 2020 and 2019, the co-location arrangements' weighted average remaining lease term was 4.3 years and 3.9 years, respectively, and the weighted average discount rate for operating leases was 1.8% and 2.2%, respectively.

Maturities of operating lease liabilities as of December 31, 2020 were as follows (in thousands):


	Real Estate Arrangements		Co-location Arrangements
2021	$	80,787	$	73,540
2022	83,863		36,805
2023	79,445		23,396
2024	70,967		16,815
2025	66,209		10,775
Thereafter	473,558		25,208
Total lease payments	854,829		186,539
Less: imputed interest	162,588		8,575
Total lease liabilities	$	692,241	$	177,964

As of December 31, 2020, the Company had additional operating leases, primarily for co-location arrangements, that had not yet commenced of $13.6 million, which will commence in 2021 and 2022, with lease terms of one year to seven years. The table above excludes approximately $216.7 million of future sublease income that is expected to be recognized through 2034.

As of December 31, 2020, the Company had outstanding letters of credit in the amount of $5.8 million, primarily related to operating leases. The letters of credit remain in effect until the Company fulfills its obligations under these leases or as such obligations expire under the terms of the letters of credit.