Leases

12 Months Ended

Dec. 31, 2020

The Company primarily leases office space, data centers, vehicles, and equipment. Some of our leases contain variable lease payments, typically payments based on an index. The Company’s leases have remaining lease terms of one year to thirty years, some of which include options to extend from one to five years or more. The exercise of lease renewal options is typically at the Company's sole discretion; therefore, the majority of renewals to extend the lease terms are not reasonably certain to exercise and are not included in Right of Use (ROU) assets and lease liabilities. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement, for the purposes of transition, the rate in effect at January 1, 2019. Additional payments based on the change in an index or rate are recorded as a period expense when incurred. Lease modifications result in remeasurement of the lease liability as of the modification date.

Other assets include ROU assets, other current liabilities include short-term operating lease liabilities, and other non-current liabilities include long term lease liabilities at December 31, 2020 and 2019 consist of the following (in millions):


	December 31, 2020		December 31, 2019
ROU assets	$	76.8	$	84.3
Short term lease liabilities	17.0		16.9
Long term lease liabilities	75.4		81.7

The Company does not recognize ROU assets and lease liabilities for short-term leases that have a term of twelve months or less. The effect of short-term leases would not be material to the ROU assets and lease liabilities.

Under ASC 842, a Company discounts future lease obligations by the rate implicit in the contract, unless the rate cannot be readily determined. As most of our leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. In determining the borrowing rate, the Company considered the applicable lease terms, the Company's cost of borrowing, and for leases denominated in a foreign currency, the collateralized borrowing rate that the Company would obtain to borrow in the same currency in which the lease is denominated.

Total lease costs for the year ended December 31, 2020 and 2019 were $20.7 million and $20.5 million, respectively.

The supplementary cash and non-cash disclosures for the year ended December 31, 2020 and 2019 are as follows (in thousands):


	December 31, 2020		December 31, 2019
Cash paid for operating lease liabilities	$	20,068	$	19,763
ROU assets obtained in exchange for new operating lease obligations 1	$	7,134	$	102,586
Weighted-average remaining lease term (years)	7.07		7.54
Weighted-average discount rate	4.18%		4.64%
1 Includes $55.9 million for operating leases existing on January 1, 2019

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


2021	$	20,183
2022	16,863
2023	15,460
2024	14,753
2025	13,183
Thereafter	28,827
Total lease payments	109,270
Less imputed interest	16,873
Present value of lease liabilities	$	92,397