Leases

12 Months Ended

Dec. 31, 2023

The Company has entered into various operating lease agreements for its offices and co-location sites 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 2024 and 2034. The Company’s operating lease costs for the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands):


	Real Estate Arrangements		Co-location Arrangements		Total
2023
Operating lease cost	$	74,054	$	179,552	$	253,606
Short-term lease cost	133		23,565		23,698
Variable lease cost	25,860		62,084		87,944
Sublease income	(32,024)		—		(32,024)
Total operating lease costs	$	68,023	$	265,201	$	333,224

2022
Operating lease cost	$	82,761	$	152,215	$	234,976
Short-term lease cost	52		21,741		21,793
Variable lease cost	25,167		35,025		60,192
Sublease income	(25,743)		—		(25,743)
Total operating lease costs	$	82,237	$	208,981	$	291,218

2021
Operating lease cost	$	84,100	$	136,673	$	220,773
Short-term lease cost	58		17,660		17,718
Variable lease cost	22,016		31,428		53,444
Sublease income	(21,033)		—		(21,033)
Total operating lease costs	$	85,141	$	185,761	$	270,902

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.

Weighted average remaining lease terms and discount rates related to the Company's operating leases as of December 31, 2023 and 2022 were as follows:


	December 31, 2023				December 31, 2022
	Real Estate Arrangements		Co-location Arrangements		Real Estate Arrangements		Co-location Arrangements
Weighted average remaining lease term (in years)	9.9		4.6		10.3		3.9
Weighted average discount rate	3.5	%	4.2	%	3.6	%	2.8	%

Maturities of operating lease liabilities as of December 31, 2023 were as follows (in thousands):


	Real Estate Arrangements		Co-location Arrangements
2024	$	68,713	$	155,505
2025	68,522		100,765
2026	64,607		80,545
2027	58,988		64,765
2028	54,725		46,010
Thereafter	313,506		67,519
Total lease payments	629,061		515,109
Less: imputed interest	97,716		48,704
Total lease liabilities	$	531,345	$	466,405

As of December 31, 2023, the Company had additional operating leases for co-location sites that had not yet commenced of $195.0 million, of which a majority will commence in 2024, with lease terms of one year to ten years. The table above excludes $207.4 million of future sublease income that is expected to be recognized through 2034.

As of December 31, 2023, the Company had outstanding letters of credit in the amount of $4.9 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.